Russian bank to sell yuan bonds

Vnesheconombank, the Russian state development bank locked out of Western capital markets by US and European Union sanctions, is in talks to sell yuan bonds on the Chinese mainland amid preparations for President Vladimir Putin's state visit this week.

Negotiations on the local placement are in an "advanced stage", Peter Fradkov, first deputy chairman at VEB, as the bank is also known, said in an interview last week. "It's hard to enter the Chinese market, but it is possible."

China set new rules in July making it easier for big international investors to access its $5.7 trillion interbank bond market. Before sanctions closed some international markets, Russian banks issued so-called dim sum notes, which are sold outside China, in a bid to tap fresh sources of cash.