Russian oil exports to India erode decades-old dollar dominance

U.S. sanctions on Russia have begun to diminish the dollar’s decades-old dominance of international oil trade as most deals with India, according to Reuters reported on Wednesday.

The Group of Seven economies have imposed an oil price cap, which led the Indian customers to pay for most Russian oil in non-dollar currencies, such as UAE dirham and Russian roble, according to multiple sources said.

Russian energy companies Gazprom and Rosneft are seeking non-dollar payments for certain niche grades of Russian oil that have in recent weeks been sold above the $60 a barrel price cap.

Most Russian banks have faced sanctions since the war but Indian customers and Russian suppliers are determined to keep trading Russian oil, an Indian refining source added.

India is the world’s number three importer of oil and Russia became its leading supplier after Europe shunned Moscow’s supplies following its invasion of Ukraine begun in February last year.