Overview

• Yuan financing is becoming increasingly expensive and scarce in Russia, impacting companies' access to foreign capital.
• Major Russian companies, including the biggest miner MMC Norilsk Nickel PJSC and the largest oil producer Rosneft PJSC, are facing rising debt servicing costs.
• The Russian central bank reports that yuan bonds have not become widespread due to limited liquidity and the need for higher yields.
• Loans in the Chinese currency nearly quadrupled to a record $46 billion in 2023, but their share in corporate credit portfolios remains in single digits.
• Russian companies and the government face barriers in borrowing within China due to capital controls, complicating the repatriation of funds.