FX.co ★ India pushes back Russia’s request to pay for oil in renminbi

Bloomberg reported that India’s government refused to pay for Russian crude oil in the yuan. Earlier, Russian oil suppliers had stipulated this payment term.

The reason behind India’s rejection to settle invoices in the Chinese currency is strained relations between Beijing and Delhi. Previously, media reported that India had suspended payments in the yuan for 7 batches of Russian oil that should have been delivered to Indian oil processing plants. According to Reuters, Indian oil processing facilities have been awaiting shipments of Russian crude since late September.

Nowadays, India’s authorities own almost 70% of the refineries in the country. India’s government defines the payment terms required by Russia as inappropriate.