Russia has asked some Indian customers to pay in United Arab Emirates (UAE) dirhams for oil exports, as Moscow seeks to distance itself from the US dollar to protect itself from the effects of Western sanctions, three sources said and shown the document.
Russia Ukraine has been hit by a series of sanctions by the United States and its allies since its invasion of Ukraine in late February, which it describes as “Special Military Operations”.
An invoice seen by Reuters shows that the fee for supplying oil to a refinery is calculated in dollars, but the fee is asked in dirhams.
Russian Oil Company Rose Napid It ships crude to India through trading companies including Everest Energy and Coral Energy, now its second-largest crude buyer after China.
Western sanctions prompted many oil importers to shun Moscow, pushing Russian crude spot prices to record discounts against other grades.
The situation has given Indian refiners, who rarely buy Russian oil due to high freight costs, an opportunity to use the discount.
Moscow was replaced Saudi Arabia India’s second largest oil supplier after Iraq for the second consecutive month in June.
At least two Indian refiners have already made some payments in dirhams and more will be made in the coming days, sources said.
The invoice showed that payment was to be made to Gazprombank through its Dubai correspondent bank, Mashreq Bank.
United Arab StatesThe UAE has sought to maintain what it says is a neutral stance, not imposing sanctions on Moscow, and the payments could anger some in the West, who privately say the UAE’s position is unacceptable and remains so. United Arab Emirates side from Russia.
Trading companies used by Rosneft started demanding dollar-denominated payments in dirhams from this month, the sources said.
Rose NapidCoral Energy and Everest Energy did not respond to emails sent by Reuters seeking comment.
DubaiThe commercial and financial center of the Gulf has become a haven for Russian wealth.
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