US sanctions have affected payments between Russia and China over vehicle sales, according to Alexei Podshchekoldin, the head of the Association of Russian Automobile Dealers.

Imports of Chinese cars into Russia have been impacted, with the issue posing a more serious problem for smaller vehicle importers, who have seen payments bounce, Reuters reports.  

The two countries have had to resort to “complex steps” to try to avoid payment delays, including using small regional Chinese banks.

This is due to the threat of secondary US sanctions on Chinese banks that facilitate trade with Russia, which deters larger lenders.

Mr Podshchekoldin said: "Even if a Russian bank is [in China] and it services rouble accounts, transactions with China can no longer be done.”

Chinese carmakers have already donimated more than half of Russia's car market since Western competitors pulled out, after Moscow invaded Ukraine in February 2022.