Moscow: India is mainly paying in roubles for Russian oil, but has started payments in the Chinese currency yuan, Russia’s Deputy Prime Minister Alexander Novak said on Wednesday.
“I am aware that such payments have started. I believe the percentage is small at present because payments are largely made in roubles,” Novak was quoted as saying by the state-run TASS news agency.
Russia is among the top suppliers of crude oil to India.
India had been paying mainly in rupees for Russian oil, according to earlier reports. Western sanctions imposed on Russia after its 2022 invasion of Ukraine have accelerated the usage of alternative currencies, including the yuan and the UAE dirham, to settle oil trades, which have long been dominated by the dollar, Reuters reported.
India, the world’s third-largest oil consumer, spent 2.5 billion euros on buying crude oil from Russia in September, 14 per cent less than the previous month, a European think tank said.
Traditionally reliant on Middle Eastern oil, India has increased its imports from Russia following the February 2022 Ukraine invasion. Western sanctions and reduced European demand made Russian oil available at steep discounts. As a result, India’s Russian crude imports surged from under 1 per cent to nearly 40 per cent of its total crude oil imports in a short span.
