Russian companies are issuing bonds in the Chinese yuan amid sanctions. Putin’s government may follow suit.

Russian President Vladimir Putin is expected to meet Chinese President Xi Jinping at a summit in Uzbekistan this week.
Russian commodity giants Rosneft, Polyus, and Rusal have recently issued bonds in Chinese yuan.
Trade between the two countries has grown, with Russia imports to China up 59% on-year in August.
Russia’s finance ministry is also considering issuing bonds in the Chinese yuan amid sanctions.

Some Russian companies are issuing bonds denominated in the Chinese yuan amid sanctions over the war in Ukraine.

State-owned oil giant Rosneft was the latest to offer 15 billion yuan, or $2.1 billion, in a bond offering, Interfax reported on Tuesday. This followed a 4.6 billion yuan issuance from Polyus, Russia’s largest gold producer, in August.

Just weeks earlier in July, Russian aluminum giant Rusal issued 2 billion yuan of bonds. Demand for the bonds was more than double what was offered, the company said on July 29.

“It seems natural to us to choose yuan-denominated bond…

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This article was written by [email protected] (Huileng Tan) and originally published on markets.businessinsider.com