Overview

• Indian Oil Corp recently settled two to three Russian cargoes in the Chinese currency, according to people familiar with the purchases.
• Sellers are keeping official prices in U.S. dollars to comply with the EU cap while accepting equivalent yuan transfers.
• Direct yuan settlement removes a prior step of converting dollars or dirhams into yuan before exchanging into roubles, reducing costs.
• Trade sources say paying in the Chinese currency could widen access to Russian barrels for state refiners because some suppliers reject other options.
• The renewed use follows a tentative thaw in India–China ties, including direct flights resuming and Prime Minister Narendra Modi’s trip to China for an SCO meeting.