Overview

• Indian Oil Corporation recently settled two to three Russian crude cargoes in Chinese yuan, according to Reuters sources.
• Suppliers continue quoting prices in U.S. dollars to align with the EU price cap while requesting equivalent settlement in yuan.
• Using yuan removes the prior need to convert dollar or dirham payments into yuan before exchanging into roubles.
• Trade sources say yuan settlement would expand available supply for India’s state refiners because some sellers refuse other currencies.
• The shift comes as India–China relations show signs of thaw, including restored direct flights and Prime Minister Narendra Modi’s recent visit to China.