China set to resume bond sales for Russian energy companies, according to the Financial Times
Russian energy giants Rosatom and Gazprom are planning to issue Renminbi-denominated "Panda Bonds" in China's domestic bond market, marking a significant development in the financial and political relations between the two countries.
This move, if carried out, would be the first time since Russia's 2022 invasion of Ukraine that a Russian corporation has tapped China's mainland market for funding. The announcement was made as part of ongoing efforts as of 2025, with Rosatom and its subsidiaries as the primary issuers, and Gazprom following suit as the secondary issuer. The exact timing of the issuance has not been explicitly stated.
The Financial Times reported this information, citing people familiar with the talks. This potential bond issuance would be a significant step, signifying a deepening of financial ties between Beijing and Moscow. However, it does not indicate any similar moves by U.S. or European allies.
During Russian President Vladimir Putin's recent trip to Beijing, Chinese President Xi Jinping emphasized that bilateral relations had endured despite international upheaval. Xi hailed Putin as an "old friend" during their meeting in Beijing. Senior Chinese regulators have expressed support for the issuance of Renminbi-denominated "panda bonds" by Russian energy executives.
Meanwhile, the oil market is experiencing losses ahead of the OPEC meeting, but this does not seem to be related to the potential issuance of "panda bonds" by Russian energy companies. The OPEC+ is said to extend oil output hikes during Sunday's meeting, but this does not directly affect the potential issuance of "panda bonds" by Russian energy companies.
On a separate note, U.S. officials are coordinating with European allies on possible new secondary sanctions targeting Moscow in response to Russia's ongoing military campaign in Ukraine. The talks about the possible new secondary sanctions did not involve discussions about China's plan to allow Russian energy companies to issue Renminbi-denominated "panda bonds".
In a significant development, the two countries also advanced a major energy agreement linking Russia's Gazprom to China through the planned Power of Siberia 2 pipeline. A weekend strike on Kyiv's central government complex is part of Russia's military campaign in Ukraine.
This news comes as the world continues to closely watch the evolving geopolitical landscape, particularly in the context of the ongoing tension between Russia and the West. The potential issuance of "panda bonds" by Russian energy companies is a clear indication of China's continued support for Russia, despite international pressures.
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