Anti-dollar action of Indian companies to buy from Russia

According to the International Economy Group of Fars News Agency, citing Reuters, industry sources and customs statistics indicate that Indian companies are converting their dollars and using Asian currencies to buy coal from Russia.

Reuters had previously reported that major Indian companies were buying Russian coal using Chinese yuan, but the newly released information shows the volume and scale of these deals.

India has significantly increased its purchases of Russian oil and coal since the beginning of Russia’s military conflict with Ukraine, and this has helped Moscow to reduce the negative effects of Western sanctions. Of course, in this direction, the Indians have seized the opportunity to supply cheap raw materials.

In July, India increased its oil import from Russia by 20% compared to June and reached more than 2 million tons. With this account, Russia was the third exporter of coal to India in July.

In June, Indian buyers paid for at least 742,000 tons of coal imported from Russia in a currency other than dollars, which was equivalent to 44% of the total coal imported from Russia that month.

Indian companies try to use currencies other than dollars to minimize the risk of violating Western sanctions against Moscow. Indian steel and cement companies have bought Russian coal using UAE dirhams, Hong Kong dollars, Chinese yuan and euros.

In June, 31% of non-dollar transactions of Russian coal were made in yuan, and 28% were in Hong Kong dollars. The share of Euro was below 25% and the share of UAE was around 16%.

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