Indian refiners making yuan payments for Russian Dollar
- July 4, 2023
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Indian refiners making yuan payments for Russian Dollar
Subject: Economy
Section: External Sector
Context: Indian refiners have begun paying for some oil imports from Russia in Chinese yuan
Key Points:
- Western sanctions decided by the G7 countries prohibit purchase of Russian oil above $60 per barrel. With the price for Russian crude rising above the $60 limit, it is likely to face payment problems.
- Russia and its customers need to find alternatives to the dollar for settling payments. For India payment is Rupee is not agreeable to Russia as it is already struggling with over $2 billion in INR reserves received on its export of defence purchases to India.
- In this situation it is being reported that IOC and other companies are making payments in Yuan. It is noteworthy that India has not endorsed the sanctions by western countries, but Indian banks are not comfortable in undertaking any trade related payments to sanctioned entities.
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