Editor's Pick: : Indian refiners said to start paying in yuan for Russian oil

As the Ukraine-Russia war drags on, Indian refiners have begun paying for some oil imports from Russia in Chinese yuan, sources with direct knowledge of the matter said on Monday. Moscow’s customers have been forced to find alternatives to the dollar for settling payments due to Western sanctions on Russia. Punitive sanctions due to Russia’s invasion of Ukraine have shifted global trade flows for its top export, with India emerging as the largest buyer of seaborne Russian oil even as it casts about for how to pay for it amid shifting sanctions. The U.S. dollar has long been the main global oil currency, including for purchases by India, but now the yuan is playing an increasingly important role in Russia’s financial system because Moscow has been frozen out of the dollar and euro financial networks by international sanctions. “Some refiners are paying in other currencies like yuan if banks are not willing to settle trade in dollars,” said an Indian government source. Indian refiners have also settled some non-dollar payments for Russian oil in the United Arab Emirates’ dirham, sources have said. Indian Oil Corporation in June became the first to pay for some Russian purchases in yuan, three sources familiar with the matter said. All the sources declined to be named because of the sensitivity of the matter. At least two of India’s three private refiners are also paying for some Russian imports in yuan, two other sources said. India is also mulling reviving the Rupee-Rouble mechanism, previously used in 1953 as an alternative payment mechanism to settle dues in rupees instead of Dollars or Euros. None of India’s private refiners — Reliance Industries Ltd, Russia-backed Nayara Energy and HPCL Mittal Energy Ltd — responded to requests for comment. Indian Oil also did not reply to a request for comment. There was no response from India’s Oil and Finance Ministries either. It could not immediately be determined how much Russian oil Indian refiners have bought with yuan, although Indian Oil has paid in yuan for multiple cargo loads, sources said. Since the imposition of sanctions on Moscow, Indian refiners have mostly bought Russian crude from Dubai-based traders and Russian oil companies such as Rosneft, and Gazprom Neft, according to shipping data compiled by Reuters. The Hindu’s Editorials Smoke and mirrors: on the political games in Maharashtra Clearing the water: on piped, potable water to rural households The Hindu’s News Quiz The India-Myanmar- Thailand Trilateral Highway would connect which State in India with Mae Sot in Thailand via Myanmar? Manipur Mizoram Tripura Arunachal Pradesh To know the answer and to play the full quiz, click here. [logo] Editor's Pick 04 July 2023 [The Hindu logo] In the Editor's Pick newsletter, The Hindu explains why a story was important enough to be carried on the front page of today's edition of our newspaper. [Arrow]( [Open in browser]( [Mail icon]( [More newsletters]( Indian refiners said to start paying in yuan for Russian oil As the Ukraine-Russia war drags on, [Indian refiners have begun paying for some oil imports]( from Russia in Chinese yuan, sources with direct knowledge of the matter said on Monday. Moscow’s customers have been forced to find alternatives to the dollar for settling payments due to Western sanctions on Russia. Punitive sanctions due to Russia’s invasion of Ukraine have shifted global trade flows for its top export, with India emerging as the largest buyer of seaborne Russian oil even as it casts about for how to pay for it amid shifting sanctions. The U.S. dollar has long been the main global oil currency, including for purchases by India, but now the yuan is playing an increasingly important role in Russia’s financial system because Moscow has been frozen out of the dollar and euro financial networks by international sanctions. “Some refiners are paying in other currencies like yuan if banks are not willing to settle trade in dollars,” said an Indian government source. Indian refiners have also settled some non-dollar payments for Russian oil in the United Arab Emirates’ dirham, sources have said. Indian Oil Corporation in June became the first to pay for some Russian purchases in yuan, three sources familiar with the matter said. All the sources declined to be named because of the sensitivity of the matter. At least two of India’s three private refiners are also paying for some Russian imports in yuan, two other sources said. India is also mulling reviving the Rupee-Rouble mechanism, previously used in 1953 as an alternative payment mechanism to settle dues in rupees instead of Dollars or Euros. None of India’s private refiners — Reliance Industries Ltd, Russia-backed Nayara Energy and HPCL Mittal Energy Ltd — responded to requests for comment. Indian Oil also did not reply to a request for comment. There was no response from India’s Oil and Finance Ministries either. It could not immediately be determined how much Russian oil Indian refiners have bought with yuan, although Indian Oil has paid in yuan for multiple cargo loads, sources said. Since the imposition of sanctions on Moscow, Indian refiners have mostly bought Russian crude from Dubai-based traders and Russian oil companies such as Rosneft, and Gazprom Neft, according to shipping data compiled by Reuters. The Hindu’s Editorials [Arrow][Smoke and mirrors: on the political games in MaharashtraÂ]( [Arrow][Clearing the water: on piped, potable water to rural households]( The Hindu’s News Quiz The India-Myanmar- Thailand Trilateral Highway would connect which State in India with Mae Sot in Thailand via Myanmar? - Manipur - Mizoram - Tripura - Arunachal Pradesh To know the answer and to play the full quiz, [click here](. [Sign up for free]( [[‘Human error’ led to Balasore train tragedy, says report, pins fault on Signal & Telecommunication department] ‘Human error’ led to Balasore train tragedy, says report, pins fault on Signal & Telecommunication department]( [[Indian Consulate in San Francisco vandalised, U.S. condemns attempted arson] Indian Consulate in San Francisco vandalised, U.S. condemns attempted arson]( [[PM Modi meets Council of Ministers, speaks of ‘Vision 2047’] PM Modi meets Council of Ministers, speaks of ‘Vision 2047’]( [[The View from India | What a weakened Putin means for India-Russia relations] The View from India | What a weakened Putin means for India-Russia relations]( Copyright @ 2023, THG PUBLISHING PVT LTD. If you are facing any trouble in viewing this newsletter, please [try here]( Manage your newsletter subscription preferences [here]( If you do not wish to receive such emails [go here](