The sanctions against Russia have helped India procure crude oil and coal imports at discounted prices. Therefore, the country aggressively purchased oil and coal since February 2022. India imported 2.17 million barrels per day in June 2023, which is 15% higher than in April, when it imported 1.96 million barrels a day. IOC settled the payment with China through ICICI Bank for the Russian Oil from Rosneft.
The Indian Oil Corp is the country’s biggest buyer of Russian crude oil. IOC is now the first state-run refiner to pay in the Chinese Yuan and not the U.S. dollar. “Some refiners are paying in other currencies like Yuan if banks are not willing to settle trade in Dollars,” said an Indian government source to Reuters.
The other leading refineries in India are also considering settling transactions using the Chinese Yuan, reported Bloomberg. Also, Hindustan Petroleum Corp and Bharat Petroleum Corp are considering ditching the U.S. dollar and paying in Chinese Yuan.
The U.S. sanctions are helping the BRICS alliance find alternative currencies to settle cross-border transactions. The development puts the U.S. dollar under pressure and gives BRICS an undue advantage in global trade.
