UPDATE 1-China c.bank says ICBC Moscow to be yuan clearing bank in Russia

(Adds background)

Beijing, Sept 23 (Reuters) - China’s central bank said it has authorized the Moscow subsidiary bank of Industrial and Commercial Bank of China (ICBC) to be a yuan clearing bank in Russia.

The People’s Bank of China announced the authorization in a statement posted on its website on Friday. It provided no details.

ICBC is the biggest’s of China’s “Big Four” state-owned banks.

The Kremlin has sought to deepen its relationship with China following the imposition by the United States and European Union of sanctions on Russia over its annexation of Ukraine’s Crimean peninsula two years ago. The Kremlin maintains that Crimea was Russian land and its status non-negotiable.

In April, a deputy governor of Russia’s central bank, Sergei Shvetsov, visited Beijing to meet officials for talks about developing closer financial links between the two countries.

At his meetings, Shvetsov said he raised the possibility of Russia issuing panda, or yuan-denominated bonds, in China.

“According to their understanding, it’s easier and faster,” Shvetsov told Reuters. “It’s a new idea and it’s necessary to understand what it means.” (Reporting by Beijing Monitoring Desk; Editing by Richard Borsuk)