🇷🇺 Russia’s Yuan Borrowing: A Sovereignty Trap Disguised as De-Dollarization

Russia recently issued CNY 20B ($2.6B) in yuan sovereign bonds, hailed by some as a step toward de‑dollarization. In reality, the move reveals a sovereignty trap:

Chinese investors are barred from buying the bonds

Buyers are Russian oil companies stuck with yuan they cannot spend abroad

Yuan repo rates in Moscow spiked to 212% in September 2024

Chinese banks rejected 98% of Russian payment requests in 2024

Russia did not escape dollar dependence—it swapped one externally controlled currency for another, while its fiscal deficit widens and its National Wealth Fund shrinks.

Globally, reserve managers are not shifting to yuan (still ~2% of reserves) but are buying gold (1,000+ tonnes annually) as a sanction‑proof hedge.