(Adds quotes and details)
BEIJING, March 16 Russia has created the
necessary market infrastructure for the issuance of its first
yuan-denominated OFZ bonds, the deputy governor of Russia's
central bank told Reuters in Beijing on Thursday.
Russia has sought stronger ties to China since relations
with the West soured over the Ukraine conflict in 2014. The
country's economy has also been hurt by a slide in global prices
for crude oil, its key exports.
"Technically, we are ready for the issue," said Dmitry
Skobelkin in an interview ahead of the opening of the central
bank's representative office in Beijing on Thursday.
The tenor of the bond has not been announced nor has the
timing of the issuance, which will be decided by the Ministry of
Finance, he said.
The Beijing office is the first opened by Bank of Russia
outside the country and will provide front-line coordination
between Moscow and Beijing on various financial issues,
Skobelkin said, including implementation of five memorandums of
understanding signed between the two countries last year.
China's central bank deputy governor, Yi Gang, at a ceremony
launching the office, said that Sino-Russia cooperation on
economic, trade and investment issues had reached a "historic
One measure of that progress will be the opening of a yuan
clearing center in Moscow on March 22, Skobelkin added.
Currency swap agreements between the two countries have been
in place since 2014, he said, and so far 815 billion roubles and
150 billion yuan have been utilized.
"We’ve tested it and utilize it from time to time," said
In September Chinese bank ICBC was appointed a clearing bank
for settling yuan transactions in Russia.
Russia is planning to raise the equivalent of $1 billion by
issuing its first-ever OFZ bonds in Russia denominated in
Chinese yuan, which is "a priority project" for Russia.
Bank of Russia and the People's Bank of China are working on
memorandum of understanding (MOU) on gold trading, in order to
solve technical problems for China to import Russian gold, said
Vladimir Shapovalov, an official with the Russia's central bank.
Last December, the Moscow Exchange signed MOU with Chinese
brokerages CITIC Securities and Galaxy Securities, paving access
for their clients to Russian securities traded in
(Reporting by Matthew Miller and Zhang Shu; Writing by Nick
Heath and Stella Qiu; Editing by Randy Fabi)