FX.co ★ India pays for Russian energy in yuan

UltraTech Cement, an Indian cement maker, purchased Russian coal using yuan. Notably, this kind of trade is still rare for an Indian firm to agree to settle it in yuan. This scheme may allow the country to help Russia evade Western sanctions and support the Chinese currency. "This move is significant. I have never heard of any Indian entity paying in yuan for international trade in the last 25 years of my career. This is basically circumventing the USD," a Singapore-based currency trader said. UltraTech bought 157,000 tonnes of coal from Russian producer SUEK that loaded on the bulk carrier from the Russian Far East port. An Indian customs document dated June 5 values the cargo at 172,652,900 yuan which is approximately $26 million. Two sources familiar with the details of the trade said the sale was arranged by SUEK's Dubai-based unit. Reportedly, other companies have also placed orders for Russian coal using yuan payments.