Russia is requesting payment in UAE dirhams for oil supplies to some Indian customers, according to three people and a document, as Moscow swings away from the US dollar to protect itself from the consequences of Western sanctions.
The United States and its allies have imposed a raft of penalties on Russia for its invasion of Ukraine in late February, which it describes as a ‘special military operation.’
According to an invoice obtained by Reuters, the charge for supplying oil to one refinery is estimated in dollars, while payment is sought in dirhams.
Russian oil behemoth Rosneft is pushing crude into India, which is now the country’s second largest oil consumer behind China, via trading firms such as Everest Energy and Coral Energy.
Western sanctions have caused many oil importers to avoid Moscow, causing Russian crude to trade at historic lows in comparison to other grades.
Due to high freight costs, Indian refiners, which rarely purchased Russian oil, now had the chance to purchase exports at significant discounts to Brent and Middle Eastern commodities.
For the second consecutive month in June, Moscow overtook Saudi Arabia as the second-largest oil exporter to India after Iraq.
According to the sources, at least two Indian refiners have already cleared some payments in dirhams, and more are expected to do so in the upcoming days.
Post Your Comments