Skip to content
Edit post

Reuters: Russia's oil trade with India faces currency obstacle

by Martin Fornusek November 28, 2023 3:03 PM 2 min read
The Russian-chartered vessel ANSHUN II with "Yokohama" fenders prepared and pipelines connected to receive another tanker and transfer Russian crude oil, 20 miles off Ceuta, on March 5, 2023, in Ceuta, Spain. Illustrative purposes only. (Antonio Sempere/Europa Press via Getty Images)
This audio is created with AI assistance

Russia's oil trade with India, one of its most important buyers, faces a major obstacle due to payments in currency other than the U.S. dollar, Reuters reported on Nov. 27, citing undisclosed sources.

In response to Western sanctions, Russia has shifted away from transactions in dollars, the world's leading currency for oil payments.

Problems arose in July when India reportedly insisted on paying for Russian oil in its national currency, the rupee. The deal then nearly fell apart as Russian oil suppliers rejected to accept the currency "because of informal guidance from the Russian central bank," Reuters wrote.

Receiving revenue in rupees would have little value outside India, a Russian banking source told the news agency.

After at least two major Russian companies reportedly threatened in August to divert around a dozen tankers from India to other destinations, the parties agreed to pay for the cargo through other intermediary currencies.

A lack of a viable alternative to the dollar remains a serious problem for Russia, affecting its oil trade with buyers in Africa, China, and Turkey, Reuters said.

Moscow has been turning to these markets as the West is weaning itself off Russian oil in response to the invasion of Ukraine.

India plays an especially important role among these states, as it has been buying more than 60% of Russia's seaborne oil, making it the second buyer of Russian seaborne crude after China, Reuters wrote.

Overall trade between Russia and India in the first eight months of 2023 more than doubled from the previous year, reaching a record high of almost $44 billion, Russian state-run media RIA Novosti claimed on Oct. 23.

Reuters: India considers importing wheat from Russia at discount
India is in talks with Moscow to import Russian wheat at discount prices in an attempt to push down food inflation ahead of the upcoming elections next year, Reuters reported on Aug. 17, citing four unnamed sources.
Support independent journalism in Ukraine. Join us in this fight.
Freedom can be costly. Both Ukraine and its journalists are paying a high price for their independence. Support independent journalism in its darkest hour. Support us for as little as $1, and it only takes a minute.
visa masterCard americanExpress

News Feed

2:42 AM

US philanthropist pledges $300 million for Ukraine in 2024.

The Howard G. Buffett Foundation has already donated over $500 million in humanitarian assistance to Ukraine since the start of Russia's full-scale invasion. The combined funds exceed the humanitarian aid contributions of the United Kingdom, the Netherlands, and Canada.
Ukraine Daily
News from Ukraine in your inbox
Ukraine news
Please, enter correct email address
9:13 PM

UK will boost humanitarian aid to Ukraine by over $10 million.

"Ukrainians are bravely defending their land against Russia’s brutal invasion, but the past two years of war have had a tragic impact on millions of people across Ukraine. Families have been separated, towns and villages decimated, and vital civilian infrastructure destroyed," said U.K. Foreign Secretary David Cameron in a written statement.
2:30 PM

Russia's Supreme Court head dies in Moscow.

Vyacheslav Lebedev, who was chairman of Russia's Supreme Court since December 1991, died in Moscow on Feb. 23. Russia's judiciary has long been controlled by the Kremlin, with the country's parliament rubber stamping a heap of oppressive legislation, while courts handing out politically motivated sentences.
2:22 PM

Former UK Prime Minister Boris Johnson arrives in Kyiv.

"With their indomitable courage I have no doubt that the Ukrainians will win and expel Putin’s forces – provided we give them the military, political and economic help that they need," Johnson wrote on X, formerly known as Twitter.
MORE NEWS

Editors' Picks

Enter your email to subscribe
Please, enter correct email address
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required
* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Subscribe
* indicates required

Subscribe

* indicates required
Successfuly subscribed
Thank you for signing up for this newsletter. We’ve sent you a confirmation email.