In order to attract Chinese banks into Russia, the government will allow Russian banks to hold capital reserves in Renminbi. 

The Russian Central Bank has drafted legislation to include the Yuan as an allowed capital reserve currency for Russian banks. The document has already been approved by the board, and will now be reviewed by the Ministry of Justice.

Currently in Russia, banks are allowed to hold capital reserves in some other foreign currencies which include; US dollars, Euros, Swiss francs, British pounds and the Japanese Yen.

Some are now speculating that the change in policy could see more Chinese banks beginning operations in the country before the end of the year. Major Chinese banks already have operations in Russia such as; ICBC, Bank of China and Chinese Construction Bank.

It is understood that Chinese banks operating in Russia would like to lend in the Renminbi rather than in rubles. The ruble has been extremely volatile in recent years due to Western sanctions and the collapse in the global price of oil that has impacted the Russia economy. Borrowing in Yuan may also be of interest to Russian banks for precisely the same reason.