Story perspectives

Russia Launches Yuan-Denominated Bonds to Tackle Deficit

11/13/2025

Summary

Story summary

Russia will issue its first yuan-denominated government bonds on December 2 to address a 5.7 trillion rubles deficit amid military spending and declining oil revenues.
The bonds mature in three to seven years and carry a face value of 10,000 yuan, with analysts expecting strong demand.
The Finance Ministry recently auctioned floating-rate bonds to fund future projects, with yuan bonds facing technical placement on December 8 at the Moscow Exchange.

History

Historical Context

Since 2014, Russia has pursued dedollarisation due to strained relations with the West, leading to initiatives like the 2016 currency swap agreement with China worth 150 billion yuan. This agreement allowed Russia to issue yuan-denominated bonds, reflecting a broader strategy to reduce reliance on Western currencies amid economic challenges, including a 5.7 trillion rubles deficit and declining oil revenues.

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Story summary

Russia will issue its first yuan-denominated government bonds on December 2 to address a 5.7 trillion rubles deficit amid military spending and declining oil revenues.
The bonds mature in three to seven years and carry a face value of 10,000 yuan, with analysts expecting strong demand.
The Finance Ministry recently auctioned floating-rate bonds to fund future projects, with yuan bonds facing technical placement on December 8 at the Moscow Exchange.

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