Russia

China’s FX reserves gained $3bn in June, the UK’s renminbi deposits grew in the first quarter of 2017, and China and Russia agreed to establish a joint investment fund for Belt and Road infrastructure projects.

Gazprom will return to Switzerland next week for roadshows in Geneva and Zurich. And, as retail taste for sub-investment grade credit grows, the bookrunners are confident the Russian gas firm will attract demand.

Russian steel and mining company Evraz has dumped plans to raise $500m through a pre-export finance facility (PXF) and decided instead to tap into local bank funds with more attractive terms.

Sanctions on Russia could be tightened following a bill that passed the US Senate nearly unanimously in mid-June, but even though some commentators are sceptical that they will be implemented, VTB head of global banking Riccardo Orcel said that it won't stop the Russian state-controlled bank’s expansion into new markets.

Russia’s EuroChem once again appeared to prove on Monday that it can squeeze bond investors for every last basis point and get away with it, but one of the bookrunners ended up owning up to half of the deal.

For emerging market bond investors, every crisis is an opportunity as inflows into the asset class continue to compress yields. Russia, commodity exporters and Mozambique are in focus this week.

Aluminium giant Rusal hit the limelight in March when it became the first Russian corporate to issue a Panda bond. But Oleg Mukhamedshin, deputy chief executive, told GlobalRMB that high onshore yields are delaying the company’s return to the Panda market.

EuroChem had taken books of $1.2bn by lunchtime on Tuesday after opening books on a four year trade a week after finishing its roadshow. Falling oil prices and a Russia sovereign trade last week meant the issuer decided to wait for a firmer market before launching its deal.

Falling oil prices and the imposition of new US sanctions failed to dampen investor demand for Russia’s Eurobond return on Tuesday.

Russia benefitted from a huge technical bid for its bond sale on Tuesday with demand approaching $6bn by 10am, as investors are desperate to pick up debt from the country.

Russia has returned with another sole VTB led deal, its first foray into the international markets this year. Some market participants had expected US or European banks to be on the mandate, following a stronger year for Russian borrowers in the international bond markets despite sanctions still firmly in place.

Vimpelcom raised $1.5bn at its holding company level on Tuesday, as it looks to complete its transition into a more streamlined, western-looking borrowing entity. Though it appears to be looking to shake off its Russian associations, investors say the risk is still the same.