Russia Reopens China Bond Market with Rosatom Gazprom

Beijing is preparing to reopen its domestic bond market to major Russian companies, such as Rosatom and Gazprom, allowing them to issue yuan‑denominated “panda bonds.” The move follows the sweeping sanctions imposed after the Ukraine conflict escalated in 2022, which barred Russian firms from Western capital markets and pushed them to seek financing in Asia.

Chinese regulators have told executives that they will support plans to issue panda bonds—yuan‑denominated debt sold by foreign issuers in China. Russian issuers are reportedly interested in placing bonds on the Chinese market, and Deputy Finance Minister Ivan Chebeskov said discussions with Chinese counterparts are ongoing. The revival of Russian panda bonds is expected to begin with a handful of issuers, including Rosatom and its subsidiaries, which have so far escaped sanctions.

Any Russian bond sales would still require clearance from Chinese regulators, and investors would need to consider the risk of secondary sanctions. Danske Bank analyst Allan von Mehren noted that the threat of secondary sanctions has made banks cautious about deals that could be seen as breaching or undermining sanctions. In a related development, Chinese rating agency CSCI Pengyuan has given Gazprom a top AAA rating, paving the way for potential debt issuance in China’s domestic bond market.

The initiative comes as Presidents Xi Jinping and Vladimir Putin deepen their “no limits” partnership. Putin has recently called for a joint financial infrastructure for Global South countries and suggested that members of the Shanghai Cooperation Organization issue joint bonds. Reopening China’s domestic bond market to Russian companies would mark the first Russian corporate fundraising in mainland China since 2022, underscoring the strengthening China‑Russia partnership and its possible impact on the global financial landscape. As the situation evolves, it remains to be seen how the revival of Russian panda bonds will affect the market and whether other Russian firms will follow suit.