Indian refiners asked to pay for Russian oil with Chinese yuan, Reuters reports
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Traders are asking Indian state refiners to pay for Russian oil with Chinese yuan amid warming ties between New Delhi and Beijing, Reuters reported on Oct. 8, citing undisclosed trade sources.
Indian Oil Corp, the country's leading state-owned refiner, has recently purchased two to three cargoes of Russian oil using Chinese yuan, sources told Reuters.
Russia has been increasingly turning to the yuan for international trade in the wake of Western sanctions imposed over the full-scale invasion of Ukraine in 2022.
Yuan has also been on the rise in oil trade settlements as an alternative to the petrodollar.
Since the outbreak of the all-out war, India has become one of Russia's leading buyers of crude, along with China.
Energy exports account for roughly one-third of Russia's federal revenue and play a crucial role in sustaining the country's wartime economy.
Indian buyers made payments for Russian oil with the Chinese currency in 2023, but ceased due to heightened tensions between India and China at the time.
Recent months have seen a thaw between the two Asian powers, as U.S. President Donald Trump's steep tariffs on India — imposed over Indian purchases of Russian oil — prompted New Delhi to seek alternative economic partnerships.
