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Chinese Ambassador to Russia: In Principle There is No Problem With Russia Borrowing Money From China

Russian state-owned news agency Sputnik reported that Zhang Hanhui, China’s Ambassador to Russia, told Sputnik that in principle there is no problem with Russia borrowing money from China by issuing bonds or taking out loans; only technical matters of how to implement such borrowing remain.

Zhang said, “More than 90% of bilateral settlements [between China and Russia] are now denominated in RMB. The percentage may grow even higher in the future. Both sides conduct settlements in RMB as well as in other currencies, including the Ruble. Regarding [Russia] issuing Bonds in China and borrowing money in China, this matter is open for discussion. There is no problem in principle [with Russia taking out debt from China], though the technical matter of how specifically to accomplish this requires further discussion among [financial] professionals.”

Zhang also said that the recent obstacles to cross-border transfers between Russia and China have to do with interference from third-party countries. He said “The obstacles occurred because some countries created troubles for us, but I believe we can find ways to overcome them.”

Russian Finance Minister Anton Siluanov said in an earlier interview with Sputnik that he had been in discussions with his Chinese counterpart about the feasibility of RMB borrowing, with the two countries’ finance ministries touching on the topic near the end of 2023, but as of yet no final decision has been made.

Source: Sputnik, February 28, 2024