Russia Raises $3 Billion in Yuan Bonds Amid Sanctions, Deepens BRICS Financial Ties

Russia has successfully issued its first Chinese yuan-denominated bonds, raising approximately $3 billion as it seeks alternative funding sources amid Western sanctions. The dual-tranche offering included RMB 12 billion ($1.7 billion) of 2029 notes yielding 6% and RMB 8 billion ($1.1 billion) of 2033 bonds at 7%, with strong demand from both retail and institutional investors.

The MOVE signals Moscow's accelerating pivot toward Beijing's financial infrastructure, with over half the bonds purchased by Russian banks now actively using yuan for trade settlements. This marks a strategic shift in BRICS economic collaboration, leveraging China's lower interest rates while circumventing dollar-based restrictions.

Finance Minister Anton Siluanov confirmed the bonds will help fund domestic priorities, though Western analysts suggest proceeds may indirectly support military expenditures. The successful issuance demonstrates the yuan's growing role in cross-border transactions between sanctioned economies.