Russian companies are issuing bonds in the Chinese yuan amid sanctions. Putin's government may follow suit.

Russian companies are issuing bonds in the Chinese currency.

Interfax reported on Tuesday that the state-owned oil company was the latest to offer bonds. In August, Polyus, Russia's largest gold producer, issued almost five billion dollars.

The Russian aluminum giant Rusal issued bonds in July of this year. The company said on July 29 that demand for the bonds was more than doubled.

The head of Rusal's corporate finance said at the time that it was natural for them to place their bonds in China.

According to a source close to the government, the finance ministry is looking at issuing bonds in the Chinese currency. The process could take up to two years.

Russia's interest in yuan-denominated settlements comes as some Russian banks have been banned from the world's largest messaging service for cross-border transactions.

Since Russia and China have been trying to establish alternatives to the US dollar for years, they are taking this opportunity to boost the use of alternative payments systems.

Russian state-energy giant Gazprom said earlier this month that it will begin exporting natural-gas from Russia to China in lieu of the euro.

The presidents of Russia and China are expected to meet at a regional summit this week.

There is an alternative to the dollar. The analysts at Russia's BCS Global Markets wrote in a note on August 18 that they have a positive outlook on the Chinese currency and that its risks from sanctions will be limited.