Russia could Offer Yuan Govt Bonds within 2Y, Lobby Group

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Russia preparing to offer OFZ bonds in yuan NFA head

U.S. investors still buying OFZs on secondary market NFA

MOSCOW, June 8 Reuters Russia could issue OFZ government bonds denominated in Chinese yuan within two years, the head of Russias financial market lobby group said.

Moscow first floated the idea in 2016, but the plan has been postponed amid growing risks of Western sanctions against Russia, despite numerous rounds of talks with Beijing.

Such risks have since materialised, with U.S. banks barred from buying roubledenominated OFZ bonds directly from Russia from midJune, after being prevented from buying Eurobonds directly in 2019.

Vasily Zablotsky, President of the National Finance Association NFA, a nongovernment lobby group of Russian banks, told Reuters that the new sanctions will not hold back foreign investors from buying Russian state bonds.

Zablotsky, who is involved in preparing documents for OFZs in yuan, said the issue is a matter of bilateral relations between China and Russia.

I think we can gradually complete this work and see OFZs in yuan within two years, Zablotsky said in an interview.

Russia uses OFZ bonds to plug holes in the budget, offering the papers with investmentgrade rating on a weekly basis. OFZs are popular among foreigners thanks to their lucrative yields but in the past few months Russias major banks became the main buyers of the state debt at weekly auctions.

U.S. investors held 40 of OFZ bonds in circulation as of April 1,…

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