Russia Gives China’s Yuan a Boost for Businesses Managing Sanctions

(Bloomberg) — As Chinese President Xi Jinping and Russian President Vladimir Putin prepare for a planned meeting this week to cement China-Russia relations, one area where stronger economic ties are already developing is currency.

China’s yuan is proving to be a useful release valve for Russian companies hemmed in by sanctions that prevent them from trading in dollars. Russian businesses are using yuan to settle more trade and are expanding borrowing in the Chinese currency. Moscow is also increasing its holdings of yuan in foreign-exchange reserves.