India Yuan Payment: India is currently buying crude oil on a large scale from Russia. Statistics show that right now India has become the biggest buyer of Russian crude oil…
Amidst the changes taking place due to international developments, India has started using Yuan instead of Dollar. A Reuters report states that Indian refiners are now paying some of the crude oil coming from Russia in the Chinese currency Yuan instead of dollars.
Because of this the need for yuan
In the news, quoting sources aware of the matter, it has been told that due to the western sanctions imposed on Russia, the Indian refiner has to do this. Russia invaded Ukraine in February last year. Since then, the war continues in Eastern Europe till now. Due to this, western countries led by America have imposed many tough economic sanctions on Russia. Due to these restrictions, Indian refiners are unable to pay for Russian crude oil in dollars.
These changes in global trade
The effect of sanctions on Russia is that big changes have been seen in global trade as well. Russia has now become the biggest supplier of crude oil to India and India has become its biggest buyer. Along with this, Russia has now become the biggest supplier of China as well, whereas after India, China is the second largest buyer of Russian crude oil.
China is promoting Yuan
Indian refiners are making some payments for Russian crude oil in yuan at a time when China is promoting its currency as the new global currency. Dollar has been in the role of global currency for a long time. However, in the current situation, the dominance of the dollar seems to be decreasing. Sanctions on Russia have also reduced the dominance of the dollar, while the importance of the yuan has increased.
These companies paid
An Indian government source has told Reuters that if banks are not settling trades in dollars, some refiners are paying them in other currencies such as yuan. Sources say that this work was first done by the Indian Oil Corporation in June. He also claimed that at least 2 private refiner companies of India are also paying in Yuan. There are currently three refiner companies in India, namely Reliance Industries Limited, Nayara Energy and HPCL Mittal Energy Limited.
