Russian oil suppliers faced a decisive stance from Indian officials who rejected proposals to settle payments in yuan, a move framed by broader diplomatic strains between New Delhi and Beijing and cited by Bloomberg through a senior Indian official. The refusal signals a clear preference for established rupee or other payment mechanisms in a context where India seeks to safeguard its energy imports while maintaining strategic autonomy.
Industry insiders note that Indian authorities control a substantial share of the country’s oil refining capacity, reinforcing the government’s leverage in shaping how international suppliers are compensated. This structural dynamic appears to influence the government’s willingness to accommodate unconventional currency requests from Russia, especially amid ongoing geopolitical tensions and bilateral frictions with major energy partners.
Earlier reporting indicated that Indian officials paused or delayed yuan-based settlements for at least seven Russian oil cargoes destined for local refineries. Reuters, citing multiple sources, described a pattern in which state-linked and private refiners awaited payments through traditional channels, with guidance signaling continued vigilance on the settlement terms. As observers noted, Indian refineries were preparing to receive further shipments from Russia toward the end of September 2023, a development tracked across regional energy markets. Material details on these arrangements were reported by the outlets covering the matter, including the Russian news outlet compilation New Newspapers.
In the broader market context, India had been applying price discipline and discount strategies on Russian oil flows, with announcements of reductions in the range of several dollars per barrel during earlier negotiations. These adjustments reflect both the competitive dynamics of global oil pricing and the strategic calculations India weighs as a major energy importer, looking to optimize supply security while navigating sanctions regimes and alignment with Western partners.