BANGKOK: Russia and Vietnam have developed a back-door method of concealing arms deal payments to avoid American and other Western sanctions, using the profits from joint oil and gas ventures to pay off defence contracts without any open transfers of cash through the global banking system, according to internal Vietnamese documents obtained by The Associated Press.
Under the system, Vietnam has purchased Russian military equipment including fighter jets, tanks and ships on credit from Moscow, then paid that credit back from its share of profits from a joint Vietnam-Russia oil company operating in Siberia. Such transactions are irregular in international financial markets and in this case are designed to keep cash quietly flowing even if sanctions aimed at ending Russia's war on Ukraine are strengthened, the documents make clear.
