Economics
Russia to China: What's a Few Dozen Basis Points Among Friends?
- Government seeking to sell debut yuan bond on China's mainland
- U.S., European sanctions have pushed Russia to look eastward
Russia's President Vladimir Putin shakes hands with China's President Xi Jinping.
Photographer: Greg Baker/AFP/Getty ImagesThis article is for subscribers only.
Cornered by sanctions, Russia is preparing a costly alternative venue to sell debt: China.
Vladimir Putin’s government, which set a $3 billion cap on foreign borrowing in 2016 and hasn’t sold Eurobonds in two years, is preparing a “pilot issue” of medium-maturity yuan notes on China’s mainland market, according to Konstantin Vyshkovsky, the head of the Finance Ministry’s debt department. Russia will need to pay at least "dozens of basis points" more than the cost of placing dollar debt to tempt investors, he said.