India's Opposition to Paying for Russian Oil with Yuan Causes Payment Delays

The Indian government's discomfort with using the Chinese yuan for payment has caused delays in settling at least seven cargoes of Russian oil imports, according to sources. While the payment dispute has not disrupted deliveries, Indian refiners are seeking alternative settlement methods. India has become the top importer of Russian seaborne oil this year, but refiners face challenges in settling trade due to price caps imposed by the US and EU on Russian oil. Indian refiners had started using yuan for payment, but the government is now uncomfortable with this arrangement. Russian sellers have insisted on yuan payments, while Indian refiners prefer using dirhams. Settlement in yuan increases costs for Indian refiners, as it requires converting rupees to Hong Kong dollars and then yuan.