Russia Issues 10 Billion Yuan Sovereign Bonds Accelerating De-Dollarization
Taylor Wilson
Russia's finance ministry this week sold a RMB 10 billion ten-year sovereign bond at a 7.65% coupon — the latest step in its de-dollarization financing strategy, as Western sanctions shut Moscow out of international capital markets and the renminbi becomes its core alternative currency.
What are the terms — and who can actually buy?
The bond carries a 10-year maturity and a 7.65% coupon. Investors may subscribe in renminbi or roubles; it lists on the Moscow Exchange.
In December, the ministry issued its first RMB-denominated sovereign bonds — two tranches totalling RMB 20 billion. This issue is longer-dated, signalling that Russia's need for renminbi funding is shifting from short-term to structural.
U.S. sanctions on the Moscow Exchange make it very hard for foreign buyers to participate. This means → the buyer base is overwhelmingly domestic Russian, limiting the bond's international reach.
Why is Russia borrowing so urgently?
January–April fiscal deficit: roughly 5.8 trillion roubles (≈$80.6 billion) — already above the full-year budget target of 3.7 trillion roubles. In plain terms = one-third of the year has passed, and the deficit has already blown through the annual ceiling.
To plug wartime funding gaps, Russia raised VAT by 2 percentage points in January and keeps scaling up sovereign-bond issuance.
Western sanctions cut Russian financial institutions off from SWIFT, blocking access to international markets. This reflects the fact that RMB bonds are not a luxury — they are one of Russia's few remaining funding channels.
How much has Russia's settlement currency mix shifted?
Central bank data: the rouble's share of export settlements hit 54% in 2025, crossing the 50% mark for the first time. The share of "unfriendly" currencies — the dollar and euro — plunged from 84% in 2021 to 14%.
President Putin said during his May 20 visit to Beijing that Russian-Chinese trade is settled "almost entirely" in roubles and renminbi.
This means → in Russia's foreign trade the dollar and euro have gone from dominant to marginal — and the shift took less than four years.
How far has the renminbi reached into Russia's corporate bond market?
Moscow Exchange data: as of late May, 62 RMB-denominated corporate bonds were trading, issued by major resource firms such as Rosneft and by financial institutions.
Full-year 2024 saw 30 issues, triple the 2023 figure; in just the first five months of 2025, more than 10 have already been issued — the pace keeps accelerating.
State gas company Gazprom reports that 2025 gas deliveries to China reached 38.8 billion cubic metres, up 25% year-on-year and surpassing European volumes for the first time. This reflects how a shift in trade flows is simultaneously driving a switch in financial settlement currencies.
Is the renminbi bond boom limited to Russia?
Far from it. The Financial Times reported that "dim sum bond" issuance — offshore RMB bonds issued mainly in Hong Kong — has topped RMB 300 billion so far this year, double the year-ago figure, and is on track to set a record.
Goldman Sachs and other U.S. financial institutions have joined the issuance wave. This means → the appeal of RMB bonds extends well beyond sanctioned countries; even American firms are using them to cut funding costs.
Put simply = Russia issues RMB debt because it has little choice, but the broader surge in offshore renminbi bonds shows the currency's competitiveness as a funding tool is growing independently of geopolitics.
Content is for reference only, not financial advice.