Russia's largest privately-owned bank, Alfa Bank, controlled by sanctioned Russian oligarch Mikhail Fridman, is expanding its business in China. The bank has launched a website and support service in Chinese for businesses in the country and plans to open branches in Beijing and Shanghai, making it the first private Russian bank to do so. The move aims to help Russian clients do business with China more efficiently. Alfa Bank suffered from Western sanctions and made a record loss of 117.1 billion rubles ($1.44 billion) in 2022 but reported a net profit of 118 billion rubles ($1.4 billion) in 2023 [f0f130c7].
China's trade with Russia reached a record level of $240.1 billion in 2023, and the two countries have reduced their dependence on the US dollar for mutual payments. Alfa Bank is already cooperating with thousands of Chinese companies and has received a AA- rating from a major Chinese rating agency. The bank has been recognized as the most technologically advanced lender by the Hong Kong Equity Investment Association (HKEIA) [f0f130c7].
The expansion of Alfa Bank's business in China is seen as a strategic move to strengthen economic ties between Russia and China. Alfa Bank, owned by sanctioned Russian oligarch Mikhail Fridman, is Russia's largest private lender. The bank plans to build offices in Beijing and Shanghai, capitalizing on the growing trade partnership between the two countries. Trade between Russia and China reached a record $240 billion last year, making China an important economic partner for Russia. The expansion into China will help Alfa Bank mitigate the impact of US sanctions, which have targeted Russian businesses and individuals. China's willingness to deepen economic ties with Russia has been crucial for the Russian economy, as it faces sanctions from the US and Europe. However, China has also taken steps to distance itself from Russia to avoid being targeted by Western sanctions [035c54d1].