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India Uses Chinese Yuan to Pay for Russian Oil—New Phase of Oil Buying De-Dollarization
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![Photo of Ivan Khomenko]( "Photo of Ivan Khomenko")
India has resumed payments for Russian oil in Chinese yuan after a months-long pause, according to Reuters, marking a renewed shift toward non-dollar transactions amid tightening Western sanctions on Moscow.
Citing sources familiar with the matter, Reuters reported on October 7 that Indian Oil Corp, the country’s leading state-owned refiner, has recently completed several transactions in yuan for shipments of Russian crude.
The move reflects growing pressure from Russian oil traders who are requesting payment in currencies that can be directly converted into rubles.
According to the report, the use of yuan enables smoother transactions with Russian suppliers, especially as some traders have begun rejecting payments in other currencies. Despite this shift, prices for Russian oil are still being quoted in US dollars to comply with the EU’s price cap, with buyers expected to pay the yuan equivalent.
The transition is part of a broader trend of de-dollarization, accelerated by the global fallout from Western sanctions imposed on Russia after its full-scale invasion of Ukraine.
In response, market participants have increasingly turned to alternative currencies, including the Chinese yuan and the UAE dirham, Reuters noted.
India has emerged as the top buyer of discounted Russian oil after European nations imposed embargoes on Russian energy imports. Russian supplies now account for roughly 40% of India’s crude oil needs, compared to less than 1% before the war in Ukraine began. Reuters estimates that the shift has saved India at least $17 billion.
Earlier, despite a new 50% US tariff on Indian imports, New Delhi reaffirmed its commitment to Russian oil, citing national interest and cost-effectiveness. According to Bloomberg on October 1, India continued importing over 1.6 million barrels per day from Russia in September—about a third of its total oil supply—though volumes have slightly declined as discounts narrowed.
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