By Evgenia Pismennaya
This article originally appeared on Bloomberg.
Vladimir Putin has a secret agent in his campaign to curb the impact of sanctions on Russia’s economy: Mr. Yuan.
That’s what skeptical bankers started calling Igor Marich after he introduced yuan trading in Moscow in 2010, when Russia became the first country outside China to offer regulated renminbi purchases. Now, as sanctions from the west over the conflict in Ukraine prompt more Russian companies to look east for growth, Mr. Yuan has become something of an honorific.
The yuan-ruble trade on the Moscow Exchange, where Marich runs money markets, has jumped 10-fold this year to $749 million in August, though still a sliver of the $367 billion in dollar-for-ruble sales. Yuan buying hit a then-peak of 666 million yuan ($109 million) on July 31, when the European Union penalized Russia’s largest banks,OAO Sberbank, VTB Group and OAO Gazprombank, over Putin’s support for Ukraine’s insurgency. With EU and U.S. sanctions in place and ties with China deepening, daily trading will soon reach 1 billion yuan, Marich said.
“I believe we can see this result within a year,” the 40-year-old sports enthusiast said in an interview at the exchange in central Moscow, where he started working in 2000, the same year Putin became president.
Marich’s goal may come sooner than he thinks. Russia is considering accepting yuan for gas under the $400 billion, 30-year supply deal that China signed during Putin’s visit to Beijing in May, according to four senior Russian officials and executives who asked not to be identified because a final decision hasn’t been made.
Complete story at - Meet 'Mr. Yuan': The Currency Trader Helping Russia Defy Western Sanctions - Russia Insider
This article originally appeared on Bloomberg.
Vladimir Putin has a secret agent in his campaign to curb the impact of sanctions on Russia’s economy: Mr. Yuan.
That’s what skeptical bankers started calling Igor Marich after he introduced yuan trading in Moscow in 2010, when Russia became the first country outside China to offer regulated renminbi purchases. Now, as sanctions from the west over the conflict in Ukraine prompt more Russian companies to look east for growth, Mr. Yuan has become something of an honorific.
The yuan-ruble trade on the Moscow Exchange, where Marich runs money markets, has jumped 10-fold this year to $749 million in August, though still a sliver of the $367 billion in dollar-for-ruble sales. Yuan buying hit a then-peak of 666 million yuan ($109 million) on July 31, when the European Union penalized Russia’s largest banks,OAO Sberbank, VTB Group and OAO Gazprombank, over Putin’s support for Ukraine’s insurgency. With EU and U.S. sanctions in place and ties with China deepening, daily trading will soon reach 1 billion yuan, Marich said.
“I believe we can see this result within a year,” the 40-year-old sports enthusiast said in an interview at the exchange in central Moscow, where he started working in 2000, the same year Putin became president.
Marich’s goal may come sooner than he thinks. Russia is considering accepting yuan for gas under the $400 billion, 30-year supply deal that China signed during Putin’s visit to Beijing in May, according to four senior Russian officials and executives who asked not to be identified because a final decision hasn’t been made.
Complete story at - Meet 'Mr. Yuan': The Currency Trader Helping Russia Defy Western Sanctions - Russia Insider
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