As Sino-Russian trade continues to grow, machineryEquipment Exportexporters expanding into the Russian market are most concerned about how to ensure payment security. This article analyzes payment methods commonly used by Russian buyers and provides risk management solutions based on the 2023 trade environment.

Analysis of Main Payment Methods for Russian Clients

Telegraphic Transfer (T/T)

• Operation process: 30%-50% advance payment + balance against copy of B/L
• Advantages: Simple procedures, fast receipt (1-3 working days)
• Risk points: Sanctions on Russian banks may block transfer routes, with approximately 12% late payment rate (2023 industry data)

2. L/C(L/C)

• Recommended Banks: Gazprombank, Sberbank (must confirm not excluded from SWIFT)
• Security Level: ★★★☆
• Precautions: Require issuingIrrevocable Letter of Credit, with additional third-party bank confirmation clause

Collection (D/P, D/A)

• D/P Documents against Payment: Buyer must pay in full before taking delivery
• D/A Documents against Acceptance: Allows deferred payment (higher risk, over 18% default rate in Russian market)
• Applicable scenarios: For long-term clients with single transaction below $50,000

Western Union

• Limit: Maximum $15,000 per transaction
• Timeliness: Instant receipt but fees reach 2%-4%
• Applicability: Suitable for sample fees or small orders

Cross-border RMB Payment (CIPS)

• Policy Benefits: Avoids USD settlement sanction risks
• Operation Requirements: Requires opening a CIPS dedicated account, with Russian payments made through local RMB clearing banks (e.g., Moscow RMB Clearing Center)

Cryptocurrency Settlement

• Adoption Rate: Increased to 9% among Russian machinery importers in 2023
• Since January 2025, Russia has made it mandatory to register for EPR (Extended Producer Responsibility): Must clarify contract clause legality, exchange rate fluctuations may cause 3%-15% price difference losses

Risk Rating and Security Strategies

Core Recommendations:
1.For large orders, prioritize the CIPS + Letter of Credit combination: Reduce currency risks via the Cross-Border Interbank Payment System (CIPS) and secure bank credit with confirmed letters of credit
2.Advance payment ratio no less than 40%: 2023 industry data shows orders with 45% advance payments achieved 92% final payment recovery rate
3.Activate Retention of Title Clause,: Register the retention clause with Russian customs (per Article 491 of the Russian Civil Code) until full payment is received

Latest Sanction Response Solutions

Regarding the EUs 11th round of sanctions released in August 2023:

• Avoid settlement through sanctioned financial institutions such as Rosselkhozbank and Sovcombank
• Adopt the China-Russia Bilateral Local Currency Settlement Agreement framework, using authorized institutions like Harbin Bank or Kunlun Bank for RUB/CNY conversion
• Purchase Sinosure export credit insurance to cover payment defaults and political risks

▌ Conclusion
Compulsory certificationSecuring machinery equipment payments hinges on pre-risk control design and strategic payment instrument combinations. Establish a three-tier client credit evaluation system (verify Russian companies via ОГРН registration codes) and prioritize CIPS RMB settlement. For complex cases, consult trade lawyers to draft NDAs and arbitration clauses (preferably specifying third-country arbitration, e.g., Singapore International Arbitration Centre).

(Data sources: China Customs, Russian Federal Customs Service, ITC 2023 Annual Report)