On September 23, 2016, the People’s Bank of China officially announced the authorization of ICBC (Moscow) as the RMB clearing bank in Russia, marking another millstone in RMB internationalization and a new stage of Sino-Russian financial cooperation. In addition, it will further improve ICBC’s global, cross-time-zone RMB clearing network and cross-border RMB service capacity, which has strong implication in expanding RMB use and trading in Russia.

ICBC currently serves as the RMB clearing bank in seven countries (including Singapore, Luxembourg, Qatar, Canada, Thailand, Argentina and Russia), making it the world’s first commercial bank that provides 24-hour RMB clearing and trading services, a sign of new height for its RMB clearing capacity.

Russia is the largest country along the “Belt and Road” route. In recent years, China and Russia have continued to deepen strategic cooperation in all aspects, with remarkable outcome in finance, energy, science & technology and infrastructure. The conditions for two countries to enhance cooperation in domestic currencies are increasingly mature. In late 2015, Central Bank of Russia announced incorporating RMB into the national foreign exchange reserves, making RMB a reserve currency  officially recognized by Russia. During Russian President Vladimir Putin’s visit to China in June 2016, the People’s Bank of China and Central Bank of Russia signed a memorandum of cooperation on establishment of a RMB clearing bank in Russia. The establishment of RMB clearing bank will create more favorable conditions for RMB usage in Russia, further facilitating the usage of RMB in Sino-Russian economy, trade and investment and driving closer cooperation in trade, investment and finance.

ICBC (Moscow) is the biggest Chinese bank in Russia, one of the systemically important banks in Russia, the biggest RMB and HKD market maker in Moscow Exchange and the first licensed Chinese bank in Russia entitled to proprietary securities, agency transaction and custody business. Earlier ICBC also took the lead in issuing the first RMB syndicated loan in Russian market and the first RMB bank card in Russia along with China UnionPay.

An official with ICBC said that after approved as the RMB clearing bank in Russia, ICBC will strictly follow regulatory requirements of both countries, perform the duties and obligations as RMB clearing bank, and push forward work related to RMB clearing bank. By leveraging advantages in fund, customer base, network, system and service, ICBC will provide customers with safe, quality and efficient RMB clearing services and contribute to Sino-Russian cooperation in economy, trade and finance.