Russia-China Bond Plan Rings Hollow as Reliance on West Endures

As the president toured Beijing last week, his officials broadcast plans for the first-ever government debt sale in China‘s mainland market. The borrowing will probably be more costly than in Europe, even with the sanctions over Ukraine that have kept Russia out of international bond markets for two years, according to Dmitry Polevoy, the chief Russia economist at ING Bank Eurasia JSC in Moscow.

„Coming to the yuan market now after China is regarded as a new source of economic slump is a bad idea and too late,“ Lutz Roehmeyer, the director of fund management at Berlin-based Landesbank Berlin Investment, said by e-mail.