Because India is not paying for Russian oil in Rupees
For the time being, India will not pay in rupees for oil from Russia or any other oil exporter, the young oil minister of the world's third-largest oil importer said on Monday. Payment will continue with the international account currencies.
" At the moment, companies in the public oil sector do not have any contracts nor is a similar proposal from Russia or any other country under consideration for the purchase of crude oil in Indian rupees," the young Indian minister told Parliament today. Rameswar Teli oil, as reported by Reuters.
Earlier this month, reports surfaced that India was exploring ways to establish a mechanism for a trade of Rupees and Rubles with Russia, including oil.
As sanctions against Russia for its invasion of Ukraine have restricted Russian trade in US dollars, there have been reports that importers who do not shy away from Russian oil, China and India, may begin to settle some transactions in the local currencies of the importing countries, the Chinese respectively the Yuan or the Indian Rupee. The problem with these currencies is that a direct exchange with Russia assumes that Russia can then use these currencies on the international market to buy goods it needs. While this can easily be done with the Yuan, it is not with the Rupee.
There has been an apparent willingness from both India and Russia to deepen their energy ties, but they need to find ways to continue oil trading without SWIFT banking and how to get bank guarantees and cargo insurance .
India is also considering ways to maintain trade with Russia, not just crude oil, by establishing an alternative payment system with a bank account, an Indian official told the Hindustan Times earlier this month. . However, it would be a complex instrument of creation, because neither the Russian ruble nor the Indian rupee are widely used in international trade, analysts say.
India, which abstained in several UN votes in condemning the Russian invasion of Ukraine, has taken advantage of the cargoes of oil bought "spot" by Russia at heavily discounted prices in recent weeks, thus containing its energy costs .
Russian crude oil exports to India have increased since the beginning of the month as sanctions came into effect, forcing traders in Europe to avoid Russian cargoes, the Financial Times reported, citing Kpler data.
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This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/perche-lindia-non-sta-pagando-il-petrolio-russo-in-rupie/ on Tue, 29 Mar 2022 12:30:46 +0000.