Russia’s Embrace of Chinese Yuan Stalls Over Risk From Sanctions
- US warning to banks on aiding Russia has complicated payments
- Chinese currency’s role has surged across the Russian economy
Chinese one-hundred yuan banknotes.
Photographer: Lam Yik/BloombergThis article is for subscribers only.
The rapid uptake of China’s yuan in President Vladimir Putin’s war economy, spurred by the fallout with the West over the invasion of Ukraine, may have hit its limit.
Countries that continue to do business with Russia face growing US pressure, most notably through the threat of secondary sanctions. That’s proved an effective brake on further yuan usage in the country as it stifles bilateral trade and payments.