FT: China prepares to open domestic bond market for Russian energy companies

China is preparing to reopen its domestic bond market to large Russian energy companies. About writes Financial Times, citing informed sources.

According to the newspaper's sources, the issue is about the possibility of issuing so-called panda bonds – bonds in yuan for foreign issuers.

This could be the first entry of Russian corporations into China's public financial market after the start of a full-scale war in Ukraine in 2022.

The last time Russian companies placed such debt instruments was back in 2017, when Rusal Oleg Deripaska raised $210 million.

It is expected that the first borrowers in case of the project implementation will be Gazprom and Rosatom.

Since 2022, Russian companies' access to international capital markets has been effectively blocked by Western sanctions. Even Chinese banks have so far avoided transactions to avoid falling under secondary US sanctions.

But the recent rapprochement between Moscow and Beijing is forcing financial institutions to act more boldly.

Chinese rating agencies have already assigned the highest credit ratings to Gazprom and several other Russian energy companies. This is a prerequisite for entering the bond market in China.

At the same time, experts warn that even if the issue goes through, Chinese banks that act as intermediaries risk being subject to US sanctions.

• on September 3, the Russian dictator Vladimir Putin, his North Korean "colleague" Kim Jong-un and the head of China Xi Jinping met in public for the first time at a military parade in Beijing.
• Diplomat Oleksandr Khara spoke to the LIGA.net that Beijing will defend Moscow, as long as it is profitable, and then it will "eat it."
• NATO Secretary General Rutte said that it is not only Russia that poses a challenge to the Alliance, but also China, Iran, and North Korea.