US warns of sanctions against Chinese banks that aid Russia, citing Ukraine war

“We continue to be concerned about the role that any firms, including those in the [People’s Republic of China], are playing in Russia’s military procurement,” Yellen said in remarks during a press conference at the close of her trip to China on Monday.

“I stressed that companies, including those in the PRC, must not provide material support for Russia’s war and that they will face significant consequences if they do,” she continued.

“And I reinforced that any banks that facilitate significant transactions that channel military or dual-use goods to Russia’s defense industrial base expose themselves to the risk of U.S. sanctions.”

The Joe Biden administration has previously warned China against supporting Russia’s war against Ukraine, which has now stretched on for more than two years.

Secretary of State Antony Blinken revealed last year that Beijing had provided Moscow with nonlethal assistance and was considering sending lethal aid.

Blinken, Yellen and other administration officials issued stern warnings to the Chinese government, and the State Department sanctioned several Chinese companies that it said were violating export control measures placed on Russia.

The latest warning from Yellen to Chinese banks comes as additional U.S. aid to Ukraine has stalled in Congress in the face of opposition from Republicans.