Russia distances itself from the US dollar further as it moves to trade oil with India using the UAE's local currency: report
Russia and Indian refiners are set to trade oil not in US dollars but in the UAE's local currency, Reuters reported.
Sources told Reuters that more deals priced in UAE dirhams will happen as Moscow looks to insulate itself from sanctions.
Earlier in March, Russia and India held talks for a potential ruble-rupee trade deal.
Russia is looking to complete an oil deal with Indian refiners using the United Arab Emirates' local currency, rather than in dollars, according to a Reuters report.
An invoice seen by Reuters revealed an Indian refiner was asked to pay for deliveries in dirhams, though the figure was first calculated in dollars. A payment in dirhams was made out to Gazprombank via Mashreq Bank, its corresponding bank in Dubai.
At least two Indian refiners have already settled some transactions using dirhams, and there are more to come soon as trading firms used by Rosneft only just started asking for payments in dirhams this month, the report added.
The moves signal Moscow is increasingly distancing itself from the US dollar as a way to minimize the impact of Western sanctions.
Typically, the dollar is the primary international trade currency, especially for commodities like oil. This also affords the US political and financial leverage over other nations, as exhibited by recent sanctions imposed on Moscow. But Russia's looking to alternate currencies now.
Earlier in March, Russia and India were in talks to revive a Cold-War era currency pact to evade sanctions too. A rupee-ruble ledger would allow the nations to do business without the use of US dollars.
Additionally, in recent months trade volume between yuan and rubles have soared, hitting a six-month high in June, Bloomberg data shows. Spot trading between the two currencies hit $48 million in the interbank market last month.
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