Russia will issue government bonds priced in the Chinese currency, the yuan, for the first time in December. The Russian Ministry of Finance announced this on Wednesday.
The move reflects the increasing economic entanglement between Russia and China as Russia grapples with Western sanctions stemming from the war in Ukraine.
The government bonds, with maturities of three to seven years, will be issued on the Moscow financial market on December 8 and are intended for domestic investors. The placement is being overseen by major banks Gazprombank, Sberbank, and VTB Capital. Russia reportedly aims to raise at least 400 billion rubles, equivalent to nearly 4.3 billion euros.
Due to the sanctions, Russia is supplying more energy and raw materials to China, resulting in a large influx of yuan into the Russian economy. That money can now be used to purchase the bonds, although the loans can also be purchased in rubles.
