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Putin Turn to China Heralds New Look at Yuan Debt: Russia Credit

President Vladimir Putin’s turn to China amid the worst standoff with the U.S. since the Cold War is prompting companies to take a fresh look at yuan bonds.

OAO Gazprom, the world’s biggest natural-gas producer, is considering issuing yuan-denominated debt, two people with knowledge of the matter said last week. The yield on OAO Gazprombank’s 1 billion yuan ($161 million) bond due in 2017 jumped 75 basis points since Putin’s incursion into Crimea, which compares with an average yield drop of five basis points for Dim Sum bonds, Bank of America Merrill Lynch data show.