The move is China's latest effort to enable the internationalisation of the yuan and protect its economy from capital outflows and geopolitical risks

Prior to sanctions imposed by the West, which cut Moscow off from international financial systems, Russia made the dividend payments in dollars

The deal, for 100,000 tonnes of crude from Moscow, was completed in the Chinese currency and not the US dollar which dominates international oil trade

The country’s central bank says it is closely watching the yuan after it broke through the 7-per-dollar level on a stumbling economic recovery and a dollar rally

The Chinese currency was flailing after poor data showed its economy’s recovery is running out of steam, dragging other currencies down with it

Western sanctions against Russia over its invasion of Ukraine have given a boost to China's efforts to internationalise its currency, with a dramatic increase in its use in commodity and energy trade with Russia