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Indian refiners asked to pay for Russian oil with Chinese yuan, Reuters reports

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Indian refiners asked to pay for Russian oil with Chinese yuan, Reuters reports
Storage tanks stand at an Indian Oil Corp. facility near Jawaharlal Nehru Port, operated by Jawaharlal Nehru Port Trust (JNPT), in Navi Mumbai, Maharashtra, India, on March 30, 2020. (Dhiraj Singh/Bloomberg via Getty Images)

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.

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Martin Fornusek

Senior News Editor

Martin Fornusek is a news editor at the Kyiv Independent. He has previously worked as a news content editor at the media company Newsmatics and is a contributor to Euromaidan Press. He was also volunteering as an editor and translator at the Czech-language version of Ukraïner. Martin studied at Masaryk University in Brno, Czechia, holding a bachelor's degree in security studies and history and a master's degree in conflict and democracy studies.

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