Russia finance minister says in talks with China on yuan loans

Russia’s finance ministry has been discussing with its Chinese counterparts the prospect of taking out yuan loans, but no decision has been made, Russian Finance Minister Anton Siluanov told state television on Monday.

“Negotiations with Chinese partners have been going on for a long time. So far there is no decision,” Siluanov told the RIA news agency.

“We discussed this topic at the end of last year at the inter-ministerial dialogue.”

Furthermore, Siluanov stated that Moscow will push the notion among its allies and is prepared to begin testing payments in digital currencies with China or other Eurasian Economic Union members.

He restated Moscow’s stance that any foreign acts involving Russian assets would be met with an equal response from Moscow.

After Moscow invaded Ukraine in 2022, the European Union and the Group of Seven (G7) froze almost 300 billion euros ($323 billion) in assets held by the Russian central bank. For more than a year, the EU and G7 have been discussing if and how these monies may be utilised.

“We are following the decisions of Western countries: we have frozen no less (than they have),” Siluanov said.

Siluanov said Russia’s budget is “under control” with revenues coming in slightly higher than expected this year. Spending has been slower than last year’s pace, following stricter controls over advance payments and spending justification, he added.