Bloomberg: India drops dollar for Russian oil purchases

Indian refineries are increasingly paying for Russian oil shipments in currencies other than the U.S. dollar.

Bloomberg reports, citing sources familiar with the matter, that this shift is driven by a desire to reduce dependence on the American currency amid geopolitical tensions and changes in U.S. policy.

Transactions are carried out through special overseas bank accounts of Russian sellers, with Indian rupees converted into UAE dirhams or Chinese yuan.

According to the report, the U.S. granted India permission to increase Russian oil purchases until April 11. However, Russian companies insist on long-term contracts and payment in alternative currencies to limit the influence of American policy.

Bloomberg notes that this change comes amid rising Russian oil imports by Indian firms, following supply disruptions caused by the conflict in Iran, which pushed global prices above $100 per barrel.