New Delhi: Russian oil traders have begun requesting Indian buyers to settle payments in Chinese yuan, reflecting deepening economic ties between Moscow and Beijing. The shift comes amid ongoing Western sanctions that have restricted Russia’s access to dollar-based financial systems.
Indian refiners, who traditionally used rupees or dirhams for oil imports, are now facing a new challenge in navigating Chinese banking channels. Traders argue that yuan transactions are more convenient and align with Russia’s growing financial integration with China. This change marks a notable departure from standard settlement practices in India’s energy sector.
The development highlights Russia’s pivot toward China for strategic economic support. Experts note that such a move not only strengthens Sino-Russian relations but also pressures other trading partners to adapt to new payment norms. For India, settling in yuan could introduce operational complexities, including currency conversion risks and additional compliance requirements.
Geopolitical analysts suggest that while India maintains strong energy ties with Russia, the shift to yuan underscores the broader challenge of balancing trade relations with multiple global powers. It also raises questions about the long-term implications for India’s currency sovereignty and the stability of rupee-based settlements in international oil trade.
Indian refiners are reportedly exploring mechanisms to access yuan efficiently and ensure uninterrupted oil supplies. The situation highlights the evolving dynamics of global energy trade and the growing influence of alternative currencies in bypassing traditional dollar dependence.
