India is rejecting pressure from Russian oil companies seeking to pay for crude in Chinese yuan, reflecting rising tensions between Beijing and New Delhi.
Bloomberg reported that Indian officials expressed their rejection of the demands of some Russian oil suppliers to pay the price of crude in Chinese yuan.
They indicated that the government of Indian Prime Minister Narendra Modi wouldn’t agree to these demands.
It should be noted that 70% of oil refineries in India are affiliated with the state, which makes them obligated to follow the directives of the Indian Ministry of Finance regarding payment methods.
Most notably, Indian oil refineries pay for Russian oil in UAE dirhams and US dollars, with limited amounts in Indian rupees.
The Chinese yuan is sometimes used for limited financial transactions.
In this context, senior Indian officials indicated that Russian suppliers are demanding that the Chinese yuan be the basic unit of dealing between the two countries in the field of oil trade.
These rejections show that economic relations between India and Russia are witnessing rising tensions.
These disputes come in light of the growing tensions between India and China in recent years, as the region witnesses border conflicts and geopolitical competition.
This Indian refusal to pay in the yuan reflects the tensions in the relationship between India and China, and highlights the impact of these tensions on economic relations between countries in different regions.