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Russia’s FESCO to Accept Yuan Payments as Sanctions Bite


FESCO, once known as Far East Shipping Company, dates back to 1880 when Tsar Alexander III issued a charter. Photo: Fesco.

 

Russia’s FESCO Transportation Group said it would accept Chinese yuan from customers, as the country’s businesses struggle to cope with international sanctions over its invasion of Ukraine.

The transport and logistics company said in a statement it was also offering customers “various alternative options of payment” for euro and US dollar transactions involving lenders under sanctions, including through other banks.

The West is shutting Russia’s economy off from the global financial system, pushing international companies to halt sales, cut ties, and dump tens of billions of dollars’ worth of investments.

It was not clear from what date FESCO began accepting payment in yuan. The company did not immediately respond to Reuters’ questions.

FESCO, once known as Far East Shipping Company, dates back to 1880 when Tsar Alexander III issued a charter for shipping from Russia’s west to its eastern ports such as Vladivostok.

Russian companies such as FESCO are exploring workarounds with emerging market allies, especially China.

Chinese businesses and banks have also been scrambling for ways to limit the impact of sanctions on their relations with Russia, with settlement of transactions in yuan seen rising at the expense of the dollar.

FESCO, which operates ports, terminals and vessel fleets, said it continues to provide logistics services on all existing routes in full, adding “all settlements and payments in Russian roubles are effected as per normal”.

 

  • Reuters, with additional editing by George Russell

 


 

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George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

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