Indian refiners start payments for Russian oil imports in Chinese yuan

Indian refiners have begun paying for some oil imports from Russia in Chinese  yuan, persons with direct knowledge of the matter said, as Western sanctions force Moscow and its customers to find alternatives to the dollar for settling payments.

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Western punishments over Russia's invasion of Ukraine have shifted global trade flows for its top export, with India emerging as the largest buyer of seaborne Russian oil even as it casts about for how to pay for it amid shifting sanctions.

The dollar has long been the main global oil currency, including for purchases by India, but now yuan is playing an increasingly important role in Russia's financial system as Moscow has been frozen out of dollar and euro financial networks by sanctions.

China has shifted to yuan for most of its energy imports from Russia, which overtook Saudi Arabia to become China's top crude supplier in first quarter this year.

"Some refiners are paying in other currencies like yuan if banks are not willing to settle trade in dollars," said an Indian government official.