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Russia plans to return to local bond sales after a six-month pause, Bloomberg reported on Wednesday. Also, the Kremlin reportedly wants Chinese yuan-denominated debt to help the Russian market recover.

The report highlighted that ruble bonds could likely be back on the market in the second half of September. Meanwhile, the report added, the debut of yuan bonds on the Russian market won’t happen until next year.

“A long-mulled plan to debut Chinese currency notes locally is being dusted off with fresh urgency as yuan trading volumes surge after sanctions shut Russia out of its traditional markets in the US and Europe,” an unnamed source said.

Trading volumes between the Chinese currency and the Russian ruble have grown 40-fold since the start of the year, as per Bloomberg data.

“With hundreds of millions of dollars coming into government coffers from energy revenue each day, the government has no need to borrow now, and sales of yuan debt would serve solely as a benchmark for companies looking to tap the market,” the source was quoted as saying.

Russia’s biggest gold miner, Polyus and aluminum giant Rusal International have already started transacting in the yuan, according to reports.

The Chinese foreign ministry told TASS in March that it did not rule out the possibility of using rubles or yuans in energy commerce with Russia.

When asked if China is ready to use rubles or yuans for Russian energy sources instead of the US dollar, the ministry responded by saying "Market players are free to choose the currency in bilateral settlements," adding that "the use of own national currencies in the process of regular trade and economic cooperation may help avoid currency risks and reduce losses stemming from currency exchange."

According to Beijing, Chinese enterprises want to utilize rubles or yuans in commerce with Russia on an equitable and mutually advantageous basis, taking market developments into consideration. "Naturally, we will use currency of other countries due to various considerations," the ministry said.

Read: Yuan more preferable as China, Russia de-dollarize trade