Business clients of Russian banks have begun transferring funds in Chinese yuan rather than euros and US dollars, with more clients opening accounts in Chinese currency, Kommersant reported Friday.
These accounts began opening in March, with balances in yuan rising, partially due to the conversion of dollars and euros into the Chinese currency.
Yuan transactions on the Russian stock exchange have continued to grow as well, but they still lag behind dollars and euros.
This shift to yuan comes amid the severe financial sanctions by the West against Russia, which severely limits its ability to use foreign currency, especially the dollar and euro.
However, as China has not sanctioned Russia, the yuan is now a more attractive currency for many in Russia.
According to Russian finance consultant Yugar Aliyev, the yuan will "not only replace the dollar in settlements with China, but also become a more reliable means of international settlements for Russian companies."
This is a developing story.