The reaction between [Ru2Cl2(μ2‐Cl)2(CO)6] and the biradicaloid [P(μ‐NTer)]2 proceeds under insertion of a Ru(II)Cl(CO)2 fragment into one P−N bond and addition of chloride to the adjacent phosphorus center. Thereby an unprecedented inorganic ruthenacycle is obtained that was investigated by single crystal X‐ray analysis, NMR and IR spectroscopy and DFT calculations. The reactivity of the complex in a halide‐pseudo‐halide exchange reaction and a coordination reaction were investigated.