Facing mounting budget deficits and Western sanctions, Russia has taken a bold step by issuing sovereign bonds denominated in yuan for the first time. This historic move marks a strategic shift towards de-dollarization and closer economic ties within the BRICS bloc. By relying on China’s currency, Moscow aims to stabilize its finances while simultaneously creating new pathways for energy revenue circulation outside Western channels. 2025 will see Russia issue yuan-denominated bonds for the first time on its domestic market for up to $4.9 billion in a move that reflects the government’s need to secure funding amid significant budget shortfalls and shrinking revenues from oil, gas, customs duties, VAT, and corporate taxes. 166 billion rubles of corporate bonds in yuan already existed before this announcement. This decision aims to address these challenges and create a new financial ecosystem outside traditional Western systems