Before paying a Russian supplier, ask your Philippine bank to review the transaction. Give it the supplier’s details, receiving bank, currency, goods description and draft invoice.

A supplier may be ready to accept payment while your bank cannot process it. Check the route before committing to a deposit.

This guide explains what Philippine buyers should prepare, how payment terms affect their risk, and which questions to ask before sending money.

Start with the bank, before the deposit

Contact your bank’s international payments or trade finance team. A general answer that the bank “handles overseas transfers” is not enough.

Ask whether it can consider a commercial payment to the specific Russian supplier and receiving bank. Include any intermediary bank shown in the supplier’s instructions.

Send a short transaction summary with these details.

Ask what further documents the bank needs, what charges may apply, and what happens if a correspondent bank rejects the transfer.

A preliminary review helps you avoid an unsuitable route. It does not guarantee that the payment will reach the supplier. The bank may reassess the transaction when you submit it.

Separate the currency from the payment route

The currency on the invoice must work for both parties and the banks involved.

Do not assume that a USD invoice can be paid through your usual bank. Equally, do not assume that switching to another currency solves a compliance problem.

OFAC states that certain sanctions risks for foreign financial institutions can arise from transactions in currencies other than US dollars. The parties and activity still matter. OFAC FAQ 1149

Ask the supplier for bank-issued receiving instructions for the proposed currency. Have your bank review them before agreeing to payment terms.

Your contract should also state who pays transfer charges and how any currency conversion will be handled. A payment sent for the invoice amount may arrive short after deductions.

Check the supplier and the parties involved

Confirm that the business named in the contract is the business you checked. Compare its registered details with the invoice and beneficiary information.

Use the separate guide on how to check a Russian company before you pay for the supplier background review.

Sanctions screening requires more than searching the supplier’s English name. Ownership matters too. Under OFAC’s 50 Percent Rule, an entity can be considered blocked because of aggregate direct or indirect ownership by blocked persons, even when it is not separately named on a sanctions list. OFAC ownership guidance

Ask your bank which sanctions regimes and checks apply to the proposed transaction. Where ownership, goods or restrictions are unclear, obtain advice from a qualified compliance or legal specialist before paying.

Banks also face sanctions exposure connected with certain activities involving Russia’s military-industrial base. This helps explain why a bank may request detailed information about the supplier and goods. OFAC FAQ 1151

Choose payment terms that match the risk

The BSP FX Manual recognizes several import payment arrangements, including advance payment, letters of credit, documents against payment and open account. Recognition in the rules does not mean a bank will offer every arrangement for a particular Russian transaction. BSP FX Manual, Section 8

Advance payment

You pay some or all of the price before shipment. This leaves you exposed if the supplier fails to deliver or a refund becomes difficult.

For a first order, consider negotiating a limited deposit and clearly defined conditions for the balance. There is no deposit percentage that makes every deal safe.

Agree what evidence is required before the next payment. Depending on the goods, this could include an independent inspection, test results or specified shipping documents.

The BSP manual allows banks to sell foreign exchange for advance import payments without prior BSP approval, subject to its guidelines. Your bank still needs to assess and accept the transaction. BSP FX Manual, Section 13

Letter of credit

A letter of credit provides for bank payment when the required documents comply with its terms. Both sides must first confirm that the banks involved can support it.

The document requirements need careful drafting. A letter of credit does not, by itself, prove the physical quality of the goods. International Trade Administration guide to letters of credit

Documents against payment

Under a documentary collection, banks handle documents and payment instructions. With documents against payment, the specified documents are released against payment.

The banks do not provide the same payment undertaking as under a letter of credit. The arrangement also does not replace supplier checks or inspection. International Trade Administration guide to documentary collections

Open account

The supplier ships before payment falls due. This reduces the buyer’s prepayment exposure but asks the supplier to extend credit.

It may be an option once the parties have established trust. The eventual payment route still needs bank review.

Prepare the documents for your payment stage

Ask your Philippine bank for its current checklist. Requirements can differ according to the payment arrangement, goods and stage of the shipment.

Prepare the contract or purchase order, invoice, beneficiary instructions and supplier details. For goods that require import permits or clearances, confirm the requirements before committing funds.

Shipping documents may be needed for payment after shipment. For an advance payment, ask what supporting documents the bank accepts at that stage and what it will require later.

The BSP publishes the FX Manual and its supporting appendices online. Use them together with your bank’s current instructions. BSP download section

Put payment problems into the contract

Agree what happens if the transfer is delayed, rejected or returned.

The contract should cover payment deadlines, bank charges, refund terms and the procedure for changing bank details. It should also define when payment counts as received.

A refund can encounter banking difficulties too. Do not treat a promise to return the deposit as equivalent to recoverable funds.

If the supplier proposes a different beneficiary or an account in another country, stop and ask for the legal and commercial explanation. Obtain supporting documents and have your bank review the arrangement before paying.

Never hide the Russian supplier, alter the goods description or split payments to avoid checks.

Verify bank details independently

Treat an unexpected change of account details as a reason to pause.

Confirm the change through a contact channel you already know. Do not rely only on the email or message carrying the new instructions.

Compare the beneficiary details with the contract. If the names differ, resolve the difference before sending money.

After payment, retain the bank confirmation and transaction reference. Ask the supplier to confirm receipt. A debit from your account does not prove that the beneficiary has received the funds.

Before you send money

Proceed only when the supplier checks, bank review and contract terms support the transaction.

You should know who receives the money, which currency and route the banks will consider, what triggers each payment, and what happens if the transfer fails.

Russia–Philippines Trade Link can help coordinate supplier communication and collect information for the buyer’s review. The buyer and supplier contract and pay directly. Supplier payments do not pass through the trade agent.

Sources checked on 15 October 2026. The linked BSP consolidated FX Manual is labeled “Updated as of May 2025.” Confirm subsequent amendments and current documentary requirements with your bank. This guide provides general information, not approval of a specific transaction. Obtain qualified local advice where legal or compliance questions remain.