Former BAT Company Does Ruble-Yuan Swaps

I.T.M.S. entered into ruble-yuan currency swaps in 2023 to generate interest income, reports Interfax.

Income from the purchase and sale of currency under swap transactions reached RUB2.56 billion ($27.23 million) last year, with a loss of RUB1.654 billion rubles, the company wrote in its annual report.

The Bank of Russia launched a new permanent instrument for the provision of yuan in January 2023. In March 2024, the Central Bank announced that at the beginning and end of each month it would temporarily double the maximum limit on transactions for currency swap transactions.

On the first two and last two trading business days of each month, the maximum daily transaction volume would be RMB20 billion, with the limit on other trading remaining at RMB10 billion.

I.T.M.S. comprises British American Tobacco’s former Russian assets, which the multinational sold to a consortium led by local management after Russia invaded Ukraine.

Russia has been partially cut off from the Western financial system due to war-related sanctions. In response, Moscow has been strengthening ties with China and boosting its own systems.