The financial cooperation between Russia and China has reached an unprecedented level of integration, with bilateral trade settlements in national currencies exceeding 99% in the first half of 2026. This milestone reflects the accelerated de-dollarization strategy pursued by both nations, driven by geopolitical shifts and the need for financial sovereignty.
The transition has been supported by the integration of payment infrastructures. China’s Cross-Border Interbank Payment System (CIPS) and Russia’s System for Transfer of Financial Messages (SPFS) are now operationally linked, enabling direct yuan-ruble transactions without reliance on SWIFT. As of June 2026, over 50 Russian banks are connected to CIPS, while 12 Chinese banks participate in SPFS. This connectivity has reduced transaction times from days to hours and significantly lowered currency conversion costs.
The Moscow Exchange has expanded its yuan-ruble trading desk, with daily volumes averaging 80 billion rubles in 2026, triple the levels seen in 2024. The exchange has also introduced yuan-denominated bonds and derivatives, attracting institutional investors from both countries. In response, the Shanghai Stock Exchange has added ruble-denominated products to its international board.
Russian banks have substantially increased their yuan holdings. By mid-2026, yuan assets in Russian commercial banks exceeded $45 billion, representing 15% of total foreign currency reserves. Sberbank and VTB have opened yuan clearing centers in Shanghai and Beijing, respectively, while the Industrial and Commercial Bank of China (ICBC) has expanded its Moscow operations to offer full-service corporate and investment banking.
A new bilateral agreement on cross-border credit guarantees, signed in March 2026, has simplified project financing for joint ventures. Chinese banks have committed to providing $8 billion in yuan-denominated loans to Russian infrastructure and industrial projects, with Russian state banks reciprocating with ruble financing for Chinese companies operating in Russia.
The Russian Central Bank has included the yuan in its list of reserve currencies with a target allocation of 20% by 2027, while the People’s Bank of China has increased its ruble holdings to 5% of its foreign exchange reserves.
