India’s largest refiner purchases Russian oil with Chinese yuan
(MENAFN) India’s largest state-owned refiner, Indian Oil Corp, has made payments in Chinese yuan for several shipments of Russian crude, Reuters reported Wednesday, citing sources.
Traders supplying Russian oil had requested Indian state refiners switch to yuan payments, which remove the extra step of converting US dollars or UAE dirhams into Russian rubles, reducing transaction costs, a trader explained. While Russian oil is priced in dollars to comply with the EU’s price cap, yuan payments are increasingly being accepted.
Since 2022, India has significantly increased oil imports from Russia and become a major supplier of refined fuels to Europe. Private Indian firms have also been buying Russian oil at discounted rates.
U.S. President Donald Trump imposed a 25% tariff on most Indian imports in August, citing India’s continued purchases of Russian crude.
Indian state refiners previously used yuan payments in 2023 but halted them during heightened tensions with Beijing. Private refiners continued, reflecting broader shifts in bilateral trade.
The payments also highlight improving India-China relations following a 2024 meeting between Prime Minister Narendra Modi and President Xi Jinping during the BRICS summit in Kazan. Last week, both countries resumed direct flights suspended since the 2020 COVID-19 outbreak, signaling ongoing diplomatic and economic rapprochement.
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