Indian refineries accelerate de-dollarization, adopting RMB to purchase Russian oil

Ask AI · With the expiration of U.S. policy waivers approaching, how are Indian refiners adjusting their currency strategies?

On March 26, Bloomberg reported that Indian refiners are increasingly using other currencies to purchase Russian oil, seeking to reduce reliance on the dollar amid escalating geopolitical tensions and a shift in U.S. policy.

Sources say the trading method involves depositing rupees into special overseas bank accounts of Russian sellers, which are then converted into UAE dirhams or Chinese yuan. Some Indian banks with limited offshore operations are also assisting in handling such transactions.

While earlier this month, the U.S. granted permission for India to increase imports of Russian crude oil, this waiver policy will expire on April 11. Before the deadline arrives, some Russian oil suppliers are pushing for more lasting arrangements, seeking to settle in alternative currencies to mitigate the impact of U.S. policy changes.

Sources indicate that in addition to dirhams and yuan, businesses are also considering the Singapore dollar and Hong Kong dollar, although the transactions depend on the acceptance level of various banks.