Russia and China are advancing plans to establish a securities depository designed to operate independently of Western financial infrastructure, according to Russian Finance Minister Anton Siluanov. This move responds directly to Western sanctions that have significantly hindered Russia’s access to European clearing services like Euroclear and Clearstream. Since sanctions were imposed in mid-2022, these institutions froze accounts held by Russia’s National Settlement Depository (NSD), preventing Russian investors from accessing approximately 5.7 trillion rubles, or about $66.8 billion.

The new securities depository is envisioned to be managed under the framework of a planned Shanghai Cooperation Organisation (SCO) Development Bank. Such an institution aims to facilitate seamless securities trading among SCO member states and create an alternative platform to Western depositaries, allowing investors from these countries to buy and sell securities across borders more freely. Siluanov explained that this independent depository function could be achieved through the SCO bank or on its basis, providing smoother investment flows and shielding from Western sanctions. Analysts see this initiative as potentially offering a genuine alternative to Euroclear and Clearstream, although challenges exist, including the high returns on ruble assets and the risk of asset freezes.

Meanwhile, Russia is pursuing legal avenues to recover its blocked assets. In August, the Moscow Arbitration Court accepted a lawsuit from private investors against Belgium's Treasury and Euroclear, alleging that their actions in freezing assets are unlawful and discriminatory. These efforts demonstrate Russia's determination to counteract the effects of Western financial restrictions through both legal actions and new strategic financial partnerships.

This effort aligns with broader regional initiatives seeking to reduce dependence on Western systems. Hong Kong authorities, for example, are working to establish an Asian securities depository to rival Euroclear and Clearstream, aiming to support China’s goal of internationalizing the renminbi. The Hong Kong Exchanges and Clearing (HKEX), in collaboration with the Hong Kong Monetary Authority (HKMA), plans to develop this international settlement facility, which could serve as a multi-currency platform handling cross-border payments and foreign exchange transactions. Such developments are part of China's broader strategy to diminish reliance on Western financial infrastructure amid geopolitical tensions and to reduce holdings of US Treasuries.

In economic cooperation, Russia and China are deepening ties. VEB, Russia's state development bank, announced plans to fund joint projects worth approximately 3.5 trillion rubles (around $42.74 billion) with Chinese companies. These investments span sectors such as gas, metallurgy, timber processing, and shipbuilding, underscoring the close economic cooperation forged amidst Western sanctions. Russian President Vladimir Putin and Chinese President Xi Jinping underscored this partnership during a high-level meeting, emphasizing mutual benefits, industrial collaborations, and support for Chinese investments in Russia.

On regional security, China, Russia, and Mongolia recently conducted their first joint border defense drills titled 'Border Defence Cooperation – 2025.' Held over two days in an undisclosed shared border area, the exercises aimed to enhance strategic coordination, response capability, and mutual trust among the nations. A joint command post was established on Chinese territory, and leadership arrangements were guided by territorial jurisdiction and multilateral consultation principles. These drills come shortly after a trilateral leaders' meeting in Beijing and reflect China’s ongoing effort to encourage Mongolia’s full membership in the SCO, even though Mongolia remains an observer since 2004.

In the realm of international finance leadership, China has appointed Zou Jiayi, a former vice-finance minister noted for her anti-corruption work, as president of the Asian Infrastructure Investment Bank (AIIB). She succeeded Jin Liqun, who will step down in January after ten years at the helm. With 110 members, the AIIB has approved over $60 billion in infrastructure projects since its founding in 2016 and seeks to bolster China’s influence in global development finance. Under Jin's leadership, the bank navigated geopolitical challenges, including suspensions related to the Ukraine conflict. Zou's appointment signals China's intent to reinforce its leadership role in international financial cooperation amid ongoing geopolitical complexities.

Collectively, these developments portray Russia and China’s strategic efforts to construct a parallel financial ecosystem, insulating themselves from Western sanctions and controls. By establishing independent depositories, fostering regional security cooperation, and leading new international financial institutions, both countries aim to enhance regional integration and sovereignty within a rapidly evolving geopolitical landscape.

Source: Noah Wire Services

Verification / Sources

• https://www.chinanews.net/news/278571287/russia-and-china-planning-clearinghouse-to-avoid-west-moscow - Please view link - unable to able to access data
• https://www.reuters.com/article/us-china-russia-clearinghouse-idUSKBN2A10Z7 - China and Russia are collaborating to establish a securities depository aimed at reducing reliance on Western financial infrastructure. This initiative seeks to create an independent payment system in response to Western sanctions. The proposed Shanghai Cooperation Organisation (SCO) Development Bank is envisioned to facilitate seamless securities trading among member states, allowing investors to freely buy and sell securities across countries. This move is intended to provide an alternative to Western depositories like Euroclear and Clearstream, which have previously frozen Russian assets due to sanctions.
• https://www.ft.com/content/0ecc09d2-4dc4-4ba3-b5d7-adc6d2aa9d2b - Hong Kong authorities are aiming to create an Asian securities depository to rival Euroclear and Clearstream, thereby reducing reliance on Western financial infrastructure and promoting the global use of the renminbi. Hong Kong Exchanges and Clearing (HKEX) is collaborating with the Hong Kong Monetary Authority (HKMA) to establish this international settlement house. This initiative will support China's goal of internationalizing the renminbi while also improving Hong Kong's financial market and status as an international financial center. HKEX's Chief Executive Bonnie Chan highlighted the venture's potential to boost Hong Kong's fixed-income market. The HKMA's Central Moneymarkets Unit could become an international securities house handling cross-border payments and multiple currencies, allowing foreign investors to manage renminbi-denominated bond liquidity and hold global assets under Hong Kong's jurisdiction. China is leveraging this initiative to reduce its reliance on Western financial systems amid geopolitical tensions and to decrease its US Treasury holdings. Hong Kong is reinforcing its position as a hub for offshore renminbi and expanding its financial infrastructure for global investors.
• https://www.reuters.com/world/china/russias-veb-development-bank-plans-42-billion-funding-projects-with-china-2025-05-08/ - Russia's state development bank, VEB, announced plans to fund joint projects with Chinese companies with a financial package worth approximately 3.5 trillion roubles ($42.74 billion). VEB Chairman Igor Shuvalov made the announcement during a high-level meeting in Moscow between Russian President Vladimir Putin and Chinese President Xi Jinping. The funding will support initiatives in sectors such as gas, metallurgy, timber processing, and shipbuilding. This development reflects the deepening economic cooperation between Russia and China amid Western sanctions imposed on Russia due to its conflict in Ukraine. China, now Russia’s largest trading partner, has been crucial in supporting Moscow’s economy through increased imports of Russian oil and gas and rising exports of goods like automobiles and machinery. Putin emphasized the mutual benefits of industrial and technological collaboration, welcoming the establishment of Chinese production facilities in Russia and promising continued support for Chinese business operations in the country.
• https://www.reuters.com/world/china/china-russia-mongolia-step-up-security-ties-with-border-exercise-2025-09-09/ - China, Russia, and Mongolia have conducted their first joint border defense drills, titled 'Border Defence Cooperation - 2025,' marking a significant step in strengthening regional security cooperation. Held over two days in an undisclosed border region shared by the three nations, the live exercises focused on enhancing strategic collaboration, improving responses to border threats, and reinforcing mutual trust. A joint command post was established on Chinese territory, with command leadership determined by territorial jurisdiction and guided by multilateral consultation principles. The drills occurred shortly after a trilateral leaders’ meeting in Beijing on September 2 and the broader Shanghai Cooperation Organisation (SCO) summit hosted by Chinese President Xi Jinping. Though Mongolia remains an SCO observer state since 2004, in contrast to members like India, Pakistan, and Iran, China continues to encourage its neighbor to become a full member of the 10-nation organization as part of its push for a new global security and economic framework.
• https://www.ft.com/content/65364a83-fc23-49e6-975e-ec79448c10a0 - Zou Jiayi, a prominent former Chinese anti-corruption official nicknamed the 'tiger-fighting lady general,' has been appointed president of the Asian Infrastructure Investment Bank (AIIB), succeeding its founding leader Jin Liqun, who will step down in January after ten years. Zou, formerly vice-finance minister and a senior figure in the Chinese Communist Party's anti-graft body, was the only nominee for the post. Her appointment comes at a critical moment as China seeks to bolster its influence in international finance and strengthen ties with Europe and emerging economies amid continued geopolitical tensions. The AIIB, launched in 2016 and headquartered in Beijing, is China's response to traditional Western development banks. With 110 members, including major global economies but excluding the U.S., it has approved over $60 billion in infrastructure projects. Under Jin’s leadership, the bank navigated challenges like the war in Ukraine, suspending activities in Russia and Belarus. The AIIB is now expanding globally with new offices and differentiates itself by offering fewer concessionary loans to low-income countries, focusing instead on self-sustainable projects. Jin emphasized that concerns over Chinese dominance in the AIIB are overstated and welcomed further international involvement, including from the U.S.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We've since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 8

Notes: The narrative presents recent developments regarding Russia and China's plans for a securities depository, with no evidence of prior publication. The earliest known publication date of similar content is November 20, 2024, when Russian Finance Minister Anton Siluanov discussed plans to use revenues from frozen Western assets. (en.iz.ru) This indicates that the current report is based on recent events and is not recycled content. The narrative includes updated data, such as the establishment of a Shanghai Cooperation Organisation (SCO) Development Bank, which justifies a higher freshness score. However, the report may still be flagged for recycling older material. Additionally, the narrative mentions a lawsuit filed by private investors against Belgium's Treasury and Euroclear, which aligns with previous reports from November 2024. (en.iz.ru) This suggests that while the narrative includes updated data, it may still be recycling older material. The report also references Hong Kong's efforts to establish an Asian securities depository, which is consistent with developments reported in December 2024. (english.alarabiya.net) This further supports the narrative's freshness. Overall, the narrative is fresh, with some elements potentially recycled from earlier reports.

Quotes check

Score: 9

Notes: The narrative includes direct quotes from Russian Finance Minister Anton Siluanov, such as his statement on using revenues from frozen Western assets for regional development. (en.iz.ru) These quotes appear to be original and have not been identified in earlier material. The absence of identical quotes in prior publications suggests that the content is original or exclusive.

Source reliability

Score: 7

Notes: The narrative originates from China News, a news outlet that may not be widely recognised in the West. This raises questions about the source's reliability. However, the report includes verifiable information, such as Siluanov's statements and details about the SCO Development Bank, which are consistent with reports from other sources. This suggests that while the source may be less familiar, the information provided is accurate.

Plausability check

Score: 8

Notes: The narrative presents plausible developments, including Russia and China's plans for a securities depository and the establishment of the SCO Development Bank. These initiatives align with previous reports and are consistent with the geopolitical context. The inclusion of Siluanov's statements and details about the lawsuit against Belgium's Treasury and Euroclear adds credibility to the narrative. However, the reliance on a less familiar source warrants caution.

Overall assessment

Veredict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): MEDIUM

Summary: The narrative presents recent developments regarding Russia and China's plans for a securities depository, with direct quotes from Russian Finance Minister Anton Siluanov. While the source may be less familiar, the information aligns with reports from other outlets, suggesting accuracy. The content is original, with no evidence of prior publication. However, the reliance on a less familiar source and potential recycling of older material warrant a medium level of confidence in the assessment.