Russian Firms Struggle With Limited, Costly Yuan Financing

Yuan financing is becoming more expensive and limited in Russia, restricting foreign funding for companies facing high interest rates and debt repayments
Major Russian energy and mining companies rely heavily on yuan for foreign financing needs after being cut off from Western markets
Insufficient yuan liquidity in Russia and high demand are contributing to more expensive yuan borrowing costs
Average debt costs will rise for Russian companies, with heavy debt burdens at major firms like Nornickel and Rosneft
Russian companies have not tapped yuan bonding opportunities in China due to capital control complications, while discussions over potential Chinese loans in yuan have yet to deliver results