CIPS (Cross-Border Interbank Payment System) is a Chinese alternative to SWIFT, launched in 2015. Its main task is to provide yuan payments between banks in different countries without passing through the American dollar infrastructure.
By May 2026, more than 1,400 financial institutions from 110 countries are connected to CIPS. Russia is one of the most active countries in terms of the number of transactions through the system. But not all Russian banks had direct access — many worked through intermediary banks, which added time and commission.
What is changing
Several Russian second-tier banks have received the status of direct participants in CIPS. This means that transactions now go directly, without an intermediary. The calculation time is reduced from several days to several hours. The intermediary's commission disappears.
For companies whose banks already have direct access to CIPS, settlements with China become faster and cheaper automatically. For those whose bank has not yet been directly connected, there is a choice: open a bank account with direct CIPS access or continue working through an intermediary.
How it works in practice
The company transfers rubles to yuan through its bank. A bank with direct access to CIPS sends a yuan payment directly to the Chinese recipient bank. Without SWIFT, without a correspondent in the UAE or Hong Kong, without unnecessary conversions.
Important limitation: CIPS only works with yuan. Other channels are needed for payments in dirhams, tenge or other currencies.
Why is this important right now?
100% of settlements in Russian-Chinese trade are conducted in rubles and yuan— Ushakov confirmed on the eve of Putin's visit. The volume of trade is $61.25 billion per quarter. At this scale, every percentage reduction in transaction costs amounts to tens of millions of rubles.
For exporters and importers: check with your bank whether it is connected to CIPS directly or works through an intermediary. If through an intermediary— evaluate how significant the commission losses are with your volume of transactions.
