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This week China began distancing from Putin.  It culminated on Thursday when two China-based banks stopped doing business with Russia and with Belarus. Records show that Russia has shareholder interest in both the ND Bank and the Asian Infrastructure Investment Bank (AAIB).  

This is the closest China has come to levying sanctions on Russia for its invasion of Ukraine. But in carefully worded statements throughout the week, China continues to push back ever-so-gently on Russia.

On Monday, Chinese Foreign spokesperson Wang Wenbin told reporters that China and Russia were only "comprehensive strategic partners of coordination." This is very different from the “better than allies” announcement made in 2021.

On Tuesday, Chinese Foreign Minister Wang Yi Wang told his Ukrainian counterpart, Dmytro Kuleba, that China "regrets" the Russia-Ukraine conflict. And a record of the call and wording was published in the Chinese foreign ministry readout.

AAIB public distancing from Putin 

On Thursday Beijing-based AAIB paused investments with Russia and Belarus. 

The Wall Street Journal reported that AIIB is a "multilateral institution with a global shareholder base." China has 27% of the voting power of the bank and Russia has 6%. NATO members account for 23% of the voting shares of the bank.

"As the war in Ukraine unfolds, the Asian Infrastructure Investment Bank (AIIB) extends its thoughts and sympathy to everyone affected. Our hearts go out to all who are suffering.” 

"We the management will do our utmost to safeguard the financial integrity of AIIB, against the backdrop of the evolving economic and financial situation." the bank said in a website statement.

NDB also suspends business with Russia

Shanghai-based New Development Bank (NDB) also posted a notice they were suspending business with Russia.

According to NBD's factsheet, the bank is owned by Brazil, Russia, South Africa, India, and China. As a shareholder, Russia holds 20% of the investment bank.

A short press release appeared on their website Thursday, "The New Development Bank (NDB) applies sound banking principles in all its operations, as stated in its Articles of Agreement.”

“In light of unfolding uncertainties and restrictions, NDB has put new transactions in Russia on hold.”

“NDB will continue to conduct business in full conformity with the highest compliance standards as an international institution.”

Friday Chinese statement urges nuclear safety

Russian forces continued an attack on Ukraine's Zaporizhzhya nuclear power plant on Friday.  And the Russians were able to seize control. The Chinese Foreign Ministry had a press conference to comment on the situation.  

Ukrainian officials say the attack caused a fire that was later put out and radiation levels are stable.

The Chinese Foreign Ministry had a press conference to comment on the situation. The Chinese were concerned about Ukraine’s nuclear safety due to the attack. And urged “calm and restraint” of the Russian forces.

"China attaches great importance to nuclear safety and is gravely concerned about the safety and security situation of nuclear facilities in Ukraine," a Chinese foreign ministry spokesman emphasized at the Friday press conference.

"We will continue to closely monitor the developments of the situation and call on relevant parties to keep calm and exercise restraint, prevent further escalation of the situation and ensure the safety of relevant nuclear facilities."

China as mediator?

The Chinese talked to Ukraine and are behind the scenes offering to mediate the situation. In Tuesday’s statement Beijing said it was “extremely concerned about the harm to civilians” in the invasion and “Ukraine … looks forward to China playing a role in realizing a ceasefire.”

China is making it known that it is distancing from Putin, and it wants no part of the war.