Amidst the strengthening of China-Russia relations, Jiemian News reported that on the 12th, the Russian Ministry of Finance officially announced it will issue sovereign bonds denominated in Renminbi (RMB) for the first time. The issuance size and coupon rate will depend on the results of subscription registration scheduled for December 2, with distribution slated for December 8, 2025.
Earlier, foreign media cited informed sources as saying that the Russian Ministry of Finance plans to issue four batches of RMB sovereign bonds, with a total ceiling of 400 billion rubles (20.331 billion ringgit), with maturities ranging from 3 to 10 years. Target customers include banks, asset management institutions, traders, retailers, and others.
The Russian Ministry of Finance believes that since Russian banks and exporters receive large amounts of RMB funds after selling energy to China, issuing RMB-denominated sovereign bonds can provide these entities with new investment channels.
According to these sources, the Russian Ministry of Finance has already held meetings with banks and corporations to explain the potential issuance parameters of the RMB bonds, and the transactions can also be settled at the current ruble exchange rate.
According to the report, these RMB bonds will be issued on the Moscow Exchange (MOEX), which is still subject to sanctions by Western countries.
Russian Finance Minister Siluanov stated in May 2024 that about 90% of trade between China and Russia is already settled in rubles or RMB, although he did not specify the exact share of each currency. In 2024, trade volume between China and Russia reached US$245 billion (1.01 trillion ringgit), setting a new historical high.