India-West News Desk
NEW DELHI – Traders selling Russian crude have started requesting payments from Indian state refiners in Chinese yuan, reflecting a growing willingness to simplify transactions amid signs of warming ties between New Delhi and Beijing.
Indian Oil Corporation, reported Reuters on October 16, has paid for two to three cargoes of Russian oil in yuan, marking a notable shift from earlier practices. Previously, Indian refiners relied mainly on dollars or UAE dirhams, which then had to be converted into yuan to facilitate payments to Russian producers, adding extra cost and complexity.
The move comes amid a broader trend prompted by Western sanctions imposed on Russia following its 2022 invasion of Ukraine, which accelerated the use of alternative currencies like the yuan for energy trades traditionally dominated by the U.S. dollars, noted Reuters. In 2023, Indian state refiners experimented with yuan payments it said, but stopped during a period of heightened tensions with Beijing, though private refiners continued using the currency.
Traders said paying directly in yuan removes a costly conversion step, making Russian oil more accessible to Indian state refiners, as some suppliers would not accept other currencies.
