Foreign media: Russia seeks India importers to buy oil and use UAE currency settlement

According to Reuters, as Russia gradually abandon the use of US dollars to reduce the impact of Western sanctions, according to the three sources and a document, Russia is seeking to allow some Indian customers to use the UAE Diram to pay oil exports.

A invoice seen by Reuters shows that Russia's bills that supply oil to an Indian refinery are denominated in US dollars, but they are required to use Diram for payment.

India is now the second largest Russian oil buyer after China. Source: Visual China

Sources said that at least two Indian refineries have used Diram to pay some funds, and more refineries will use this method to pay in the next few days. The information of the invoice shows that the Indian refinery will pay Russia's Natural Gas Industry Bank of Russia through its Agent Bank of Dubai's agent bank, Mashreq Bank.

Sources also said that the Russian Petroleum Corporation (ROSNEFT) -related trading companies have also required to be denominated from US dollars from this month, but Dram pays. Russian Petroleum is currently selling crude oil to India through trading companies such as Everytenergygy and Coralenergy. India is now the second largest Russian oil buyer after China.

Reuters said that Western sanctions on Russia have prompted many oil importers to no longer buy Russian oil, which has promoted Russian crude oil to be sold at discounted. And this provides an opportunity for Indian oil refineers that have been limited by high transportation costs. They take the opportunity to buy Russian oil at a much lower price than Brent crude oil and Middle East crude oil. In June this year, Russia has replaced Saudi Arabia for the second consecutive month, becoming the second largest oil supply country after Iraq.

Petroleum hanging in Russia. Source: Visual China

Russian Foreign Minister Lavrov stated in April that Russia hopes to increase the use of non -Western currencies in trade with India and other countries. Russian Finance Minister Silu Annov said last month that Russia may begin to buy currencies in the "friendly" country and use these assets to influence the exchange rates of the US dollar and euro to fight the sharp rise in the exchange rate of the ruble. In addition, the Moscow Currency Exchange is preparing to start the use of Uzbekistan currency Somme and the UAE currency Diram for transactions.

According to Reuters, the UAE maintains a neutral position on the conflict between the Russian -Ukraine conflict and has not participated in the Western sanctions against Russia. At present, the financial and commercial centers in Dubai, the Gulf area, have been regarded as a refuge of Russian wealth.

Oil storage tanks in Russia. Source: Visual China

India, which also maintains a neutral position, not only acknowledge the insurance provided by Russia, but also provides classification services for ships managed by Dubaizi, the largest shipping group in Russia to promote international trade. In addition, the Bank of India also launched a new international trade settlement mechanism using rupee last week. Many experts believe that this is a means of trade in countries that have promoted to Russia or Iran, such as Russia or Iran.

(Edit: LC)

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