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Indian Refiners Reject Yuan for Russian Oil

REFINING

Indian refiners continue to reject further attempts by Russia for oil payments in Chinese yuan according to senior Indian refining officials speaking with Bloomberg.

  • Prime Minister Narendra Modi’s government won’t agree to those requests for yuan payments because of increased tensions between New Delhi and Beijing. Russia would like it to become the primary currency of transaction for its oil by Indian buyers.
  • Indian Oil Corp has made a yuan payment in the past but since stopped.
  • Russia has excess rupees while demand for yuan is growing due to increased trade with China after Russia was annexed by the west.
  • Indian refiners mostly pay for Russian oil in UAE dirhams, US dollars and rupees.
  • Russia is now India’s top crude supplier. It has pushed back against a single BRICS currency in the past fearing it would favor the yuan.

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