New Delhi: Russia is seeking payment in UAE dirhams for oil exports to some Indian customers, three sources said and a document showed, as Moscow moved away from US dollars to protect itself from the effects of Western sanctions. goes.
Russia has faced a series of sanctions by the United States and its allies over its invasion of Ukraine in late February, which it calls a “special military operation”.
An invoice seen by Reuters shows that a bill for supplying oil to a refiner is calculated in dollars while payment is requested in dirhams.
Russian oil major rosneft Moving crude oil through trading firms including Everest Energy and Coral Energy in India, which is now its second largest oil buyer after China.
Western sanctions have prompted many oil importers to stay away from Moscow, prompting spot prices for Russian crude to register a discount against other grades.
This provided an opportunity for Indian refiners, which rarely bought Russian oil due to high freight costs, to close exports to Brent and Middle East staples at steep discounts.
Moscow replaced Saudi Arabia as the second largest oil supplier to India after Iraq for the second consecutive month in June.
Sources said at least two Indian refiners have already made some payments in dirhams, and will make more such payments in the coming days.
The invoice shows payment to Gazprombank through its correspondent bank in Dubai, Mashreq Bank.
The United Arab Emirates, which is trying to maintain what it calls a neutral position, has not imposed sanctions on Moscow, and the payment could add to the frustration of some in the West, who say privately that the United Arab Emirates The situation in the emirate is unstable and is at odds with Russia. ,
Sources said trading firms used by Rosneft have started demanding payment in dollars equivalent to dirhams from this month.
Rosneft, Coral Energy and Everest Energy did not respond to emails from Reuters seeking comment.
Russia wants to increase its use of non-Western currencies for trade with countries like India, its foreign minister Sergey Lavrov said in April.
The country’s finance minister also said last month that Moscow could begin buying currencies of “friendly” countries, using such holdings to influence the exchange rate of the dollar and euro to counter sharp gains in the ruble. can be used as a means.
Moscow currency exchange is preparing to start trading in Uzbek amount and dirham.
Dubai, the Gulf’s financial and trading center, has emerged as a haven for Russian wealth.
India, maintaining a neutral position, recognizes insurance cover by Russian companies and has offered an assortment of ships managed by a Dubai-based subsidiary of Moscow’s top shipping group to enable trade.
India’s central bank last week introduced a new mechanism for international trade settlement in the rupee, which many experts see as a way to boost trade with countries such as Russia and Iran under Western sanctions.
Russia has faced a series of sanctions by the United States and its allies over its invasion of Ukraine in late February, which it calls a “special military operation”.
An invoice seen by Reuters shows that a bill for supplying oil to a refiner is calculated in dollars while payment is requested in dirhams.
Russian oil major rosneft Moving crude oil through trading firms including Everest Energy and Coral Energy in India, which is now its second largest oil buyer after China.
Western sanctions have prompted many oil importers to stay away from Moscow, prompting spot prices for Russian crude to register a discount against other grades.
This provided an opportunity for Indian refiners, which rarely bought Russian oil due to high freight costs, to close exports to Brent and Middle East staples at steep discounts.
Moscow replaced Saudi Arabia as the second largest oil supplier to India after Iraq for the second consecutive month in June.
Sources said at least two Indian refiners have already made some payments in dirhams, and will make more such payments in the coming days.
The invoice shows payment to Gazprombank through its correspondent bank in Dubai, Mashreq Bank.
The United Arab Emirates, which is trying to maintain what it calls a neutral position, has not imposed sanctions on Moscow, and the payment could add to the frustration of some in the West, who say privately that the United Arab Emirates The situation in the emirate is unstable and is at odds with Russia. ,
Sources said trading firms used by Rosneft have started demanding payment in dollars equivalent to dirhams from this month.
Rosneft, Coral Energy and Everest Energy did not respond to emails from Reuters seeking comment.
Russia wants to increase its use of non-Western currencies for trade with countries like India, its foreign minister Sergey Lavrov said in April.
The country’s finance minister also said last month that Moscow could begin buying currencies of “friendly” countries, using such holdings to influence the exchange rate of the dollar and euro to counter sharp gains in the ruble. can be used as a means.
Moscow currency exchange is preparing to start trading in Uzbek amount and dirham.
Dubai, the Gulf’s financial and trading center, has emerged as a haven for Russian wealth.
India, maintaining a neutral position, recognizes insurance cover by Russian companies and has offered an assortment of ships managed by a Dubai-based subsidiary of Moscow’s top shipping group to enable trade.
India’s central bank last week introduced a new mechanism for international trade settlement in the rupee, which many experts see as a way to boost trade with countries such as Russia and Iran under Western sanctions.