Russia to Replenish Foreign Reserves by Buying Yuan Amidst Sanctions and Oil-Cap Hit

Russia is expected to start buying Chinese yuan to replenish its foreign reserves for the first time since it invaded Ukraine in 2022. The move indicates that Western sanctions and a G7-led price cap on Russian crude aren't enough to curb Russia's energy revenues. Russia is likely to snap up around $200 million in Chinese yuan each month, marking a reversal of its yuan sales from its reserves to cover its budget deficit. Russia has managed to maintain its energy revenues by forcing oil producers to pay more taxes and redirecting oil exports to alternative markets such as China and India.