China-Russia ties may lead to ‘political’ loans
With the US and UK markets largely closed to them, Russian borrowers are turning their sights on Asia. But bankers believe that any loan from a Chinese bank would be politically motivated, meaning that the Chinese loan market would not step up to meet any large scale funding needs.
The Russian loan market did reopen this week, with steelmaker Evraz signing a $425m five year pre-export credit facility with banks. While European banks look likely to re-emerge as a funding channel for Russian borrowers, the US and UK markets are likely to remain closed.