Just days after Vladimir Putin stood beside Xi Jinping at Beijing’s grand military parade following the Shanghai Cooperation Organization summit, Russia’s two largest state-owned enterprises, Rosatom and Gazprom, announced they were preparing to issue yuan-denominated “panda” bonds in China.

The timing was no accident. Moscow is sending a message that it has found an alternative financial anchor in Beijing, and Beijing is signaling its willingness to underwrite a partnership that directly challenges Western power.

The issuance of yuan bonds by Rosatom, Russia’s nuclear energy monopoly, and Gazprom, the gas giant long at the center of Europe’s energy politics, represents more than a financial transaction. It is a statement of geopolitical intent that carries implications for the war in Ukraine, the future of sanctions, and the global role of the dollar.

This marks the first major attempt by Russian corporations to issue yuan-denominated bonds since the invasion of Ukraine severed Moscow from Western capital markets. Sanctions have cut off Russian access to dollars and euros, forcing the Kremlin to seek out new avenues of financing.

By securing AAA ratings from Chinese credit agencies, both Rosatom and Gazprom have paved the way to tap the world’s second-largest bond market. If successful, they will set a precedent for other sanctioned Russian companies, and possibly for........

© The Hill