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https://www.kyivpost.com/post/76657Russia announced plans Thursday, May 21, to issue another round of government bonds denominated in Chinese yuan, days after President Vladimir Putin returned from a two-day state visit to China aimed at strengthening ties with Beijing amid global tensions over the wars in Ukraine and Iran.
President Trump has always wanted to join the club of autocratic leaders like Xi and Putin and has begged both for their acceptance. In visiting China last week with the US Secretary of Defense, he basically accepted Xi as (at least) his equal and China as that of the US - something his predecessors were careful not to do. In the meantime, Xi has spun the meeting into the abdication of the US as thee only global superpower and cast China into the new star as the US's becomes ever more tarnished. Putin's rush to kiss Xi's ring a few days later clinched the title of Xi being at the center of things. Xi Jinping has described China-Russia relations as a force of “calm amid chaos” (presumably in contrast to Trump)during talks with Russian leader Vladimir Putin in Beijing on Wednesday, May 20, as global tensions continue to rise following conflicts in Ukraine and the Middle East.
For China, hosting both Trump and Putin within days highlights its ambition to position itself as a global diplomatic powerbroker, capable of engaging rival blocs while maintaining ties with both Washington and Moscow.
According to Russia’s Finance Ministry, quoted by Bloomberg, investors will be offered fixed-coupon bonds with a 10-year maturity and a face value of 10,000 yuan ($1,380) per note. Orders will be collected on May 28, while placement on the Moscow Exchange is scheduled for June 3.
The ministry said investors would be able to purchase the bonds and receive coupon payments in either Chinese yuan or Russian rubles.
The planned issuance follows Putin’s meetings in Beijing with Chinese leader Xi Jinping, where both sides sought to demonstrate the strength of Russia-China relations despite mounting Western pressure and ongoing geopolitical conflicts.
Russia first entered the yuan-denominated sovereign bond market late last year, raising 20 billion yuan ($2.9 billion) across two separate tranches. According to Bloomberg, the Russian government has increasingly relied on yuan financing to help cover budget deficits fueled by wartime spending and weaker oil revenues.
At the time of the first issuance, Russian Finance Minister Anton Siluanov said the ministry hoped to create a benchmark yield curve in yuan “to help corporate borrowers tap yuan funding.”
The previous 12 billion yuan ($1.8 billion) bond tranche maturing in February 2029 carries a 6% coupon, while another 8 billion yuan ($1.2 billion) tranche due in 2033 pays 7%, Bloomberg reported.
Jeff
