'And India gets hit with US sanctions': Top economist calls out irony as China reopens bonds for Russia

China is opening its bond market to Russian energy firms — even as Washington warns India over oil imports. Economist Mohamed A. El-Erian captured the irony on X: “India must be thinking, ‘and we get hit with US secondary sanctions for buying oil from Russia?!’”

According to the Financial Times, Beijing is preparing to let Russian companies issue renminbi-denominated “panda bonds” in its mainland market for the first time since 2017. Senior regulators reportedly assured Russian executives in August that issuances would be supported, marking a major financial lifeline for Moscow as Western sanctions keep it shut out of global capital markets.

The talks coincided with President Vladimir Putin’s visit to Beijing, where he met Xi Jinping. Xi hailed Putin as an “old friend” and advanced the Power of Siberia 2 pipeline, aimed at securing long-term energy flows to China.

For Russia, panda bonds mean renewed access to funding in yuan. For China, they strengthen the push to internationalize its currency and deepen ties with Moscow at a time of intensifying geopolitical rivalry with the U.S.

Meanwhile, U.S. and European officials are weighing secondary sanctions to restrict countries still trading with Russia — with India facing repeated scrutiny over its crude oil purchases. 

El-Erian’s quip underscores the awkward position New Delhi faces: penalized by Washington even as Beijing extends financial support to Moscow.

Analysts say the return of Russian panda bonds highlights efforts by Beijing and Moscow to weaken dollar dominance while testing U.S. resolve. But investors face high risk: political volatility, sanctions exposure, and repayment uncertainties remain entrenched.