Chinese banks and investors are distancing themselves from major Russian corporations, wary of potential secondary sanctions from the West, Reuters has reported.

Moscow had hoped to tap into China’s massive bond market as a source of affordable financing, but those ambitions appear to have stalled. Efforts by state-backed giants such as Rosatom, Russia’s nuclear energy corporation, and natural gas producer Gazprom to issue yuan-denominated “panda bonds” have met little enthusiasm from Chinese financiers.

The push for alternative funding gained momentum after President Vladimir Putin’s visit to Beijing in early September. However, industry insiders say Chinese regulators and financial institutions remain cautious, fearing repercussions that could limit their access to global markets.

“Secondary sanctions risks are a major concern,” one source familiar with the matter told Reuters, adding that investors are unlikely to embrace Russian issuers anytime soon.

Neither Rosatom nor Rusal commented on the issue, while Gazprom—though not on Washington’s toughest sanctions blacklist—declined to respond to inquiries. A representative of a Chinese stock exchange said no formal proposals from Russian companies were currently under consideration.

Bond traders in China also voiced skepticism, citing high geopolitical risks as a reason to avoid exposure to Russian debt.