India has rejected demands of Russian oil companies for payment in yuan amid tension with China. According to a report by the Bloomberg news agency, some Russian oil suppliers are demanding payment in Chinese currency from India. Indian refiners mostly pay for Russian oil imports in dirhams (UAE currency), US dollars, and a small amount of rupees, if oil prices are above the $60 a barrel cap imposed by the US and its allies on Russian oil. While the yuan is sometimes used in smaller transactions, Russian oil suppliers are requesting that the Chinese currency be the main unit of transaction for oil trade. In FY22, Russian oil accounted for only 2% of India’s total oil imports; in FY23, it made up around one-fourth of the 235.52 million tonnes of crude oil imported by India.

Source: Mint October 20, 2023 10:27 UTC