According to three people and a document, Russia is looking for payment in United Arab Emirates dirhams from select Indian customers for oil exports as Moscow swings away from the U.S. dollar to protect itself from the consequences of Western sanctions. This information was provided by Reuters.
The United States and its allies have imposed several sanctions on Russia as a result of its invasion of Ukraine in late February, which Moscow refers to as a “special military operation.”
According to an invoice obtained by Reuters, payment for the oil supply to one refiner is asked in dirhams, but the cost is computed in dollars.
Russia’s largest oil producer, Rosneft, is supplying crude to India, its second-largest oil customer after China, through trading companies like Everest Energy and Coral Energy.
Numerous oil importers have avoided Moscow as a result of Western sanctions, driving down spot prices for Russian crude relative to other grades to record lows.
Due to high freight costs, Indian refiners, which rarely purchased Russian oil, now had the chance to purchase exports at significant discounts to Brent and Middle Eastern commodities.
According to the sources, at least two Indian refiners have already cleared some payments in dirhams, and more are expected to do so in the upcoming days.
Payments were to be transferred to Gazprombank through Mashreq Bank, its correspondent bank in Dubai, according to the invoice.
The United Arab Emirates has not placed sanctions on Moscow in an effort to maintain what it claims is a neutral position, and the payments may only aggravate some Westerners who privately believe that the UAE is taking a pro-Russian attitude.
The sources claimed that beginning of this month, the trading companies Rosneft uses have begun demanding the dirham equivalent of the payment made in dollars.