Indian refiners ditch dollar to pay for Russian oil in UAE dirhams

Indian refiners pay traders in dirhams for Russian oil
Indian refiners pay traders in dirhams for Russian oil

Indian refiners have begun paying for most of their Russian oil purchased via Dubai-based traders in United Arab Emirates dirhams instead of U.S. dollars, four sources with knowledge of the matter said.

While Western sanctions against Moscow are not recognised by India, and purchases of Russian oil may in any case not violate them, banks and financial institutions are cautious about clearing payments so as not to unwittingly fall foul of the many measures imposed against Russia following its invasion of Ukraine.

Indian refiners and traders are concerned they may not be able to continue to settle trades in dollars, especially if the price of Russian crude rises above a cap imposed by the Group of Seven nations and Australia in December.

That has led traders to seek alternative methods of payment, which could also aid Russia’s efforts to de-dollarise its economy in response to the Western sanctions.

Previous attempts by Indian refiners to pay traders for Russian crude in dirhams through Dubai banks failed, forcing them to switch back to the U.S. currency.

But India’s top bank, the State Bank of India (SBI), is now clearing these dirham payments, the sources told Reuters, providing details of transactions that have not previously been reported. The SBI, which has overseas branches including in the United States, did not respond to requests for comment.

The G7 price cap prohibits any Western company, such as the insurance and shipping service providers that underpin much of global trade, from involvement in trading Russian crude if the purchase price is above $60 a barrel at the loading point in Russia. That remains the case even if the oil is bound for countries such as China and India which do not recognise the cap.

The shift to dirham payments was also triggered by the SBI asking refiners looking to make dollar payments for Russian crude to provide a breakdown of the costs of the oil, freight and insurance, allowing it to vet trade and avoid violating the cap.

“The SBI is very conservative in its approach,” one of the sources said, even though India does not follow the price cap mechanism and Western insurance and shipping are not used for delivery.

Indian refiners typically buy Russian crude from traders at a price that includes delivery to India. An invoice for such a deal seen by Reuters showed traders asking for an average crude price including freight for Urals crude. The document calculated the price of the cargo in dollars and dirhams.

The four sources said Indian refiners are buying Russian oil on a delivered basis to mitigate any risks arising during shipping, and so far the calculated cost at the point of loading has been below the price cap.
Indian refiners mostly buy Russian crude from Dubai-based traders including Everest Energy and Litasco, a unit of Russian oil major Lukoil (LKOH.MM).

Everest Energy and Litasco did not respond to requests for comment.
India’s oil secretary Pankaj Jain last month said Indian companies were not facing any problems in paying for Russian oil as the latest actions by the West do not impact the trade settlement mechanism. [Reuters]

FUNDRAISING: KEEP STRANGESOUNDS ONLINE!… THANK YOU FOR YOUR HELP! (You will get a gemstone gift for every donation above 50$!)

You should also join my newsletterYOU WILL LOVE IT

I recommend following Qfiles for videos, podcasts and a wide compilation of alternative news…

qfiles by steve quayle

The following links feature products I recommend you to add to your preparedness plan to help and protect you and your family during an emergency:


  1. Full Moon and major quakes for ring of fires… 7,8 Turkey state of Emergency Declared and many deaths.. This is prelude to WW3 more shaking of planet is in full progress… Look for 3-3-11 quakes as well anniversary of Japan quakes next full moon …Ring of fire is hot hot indeed…

  2. Well, this also explains the big smash in gold and silver on Friday. The Swaps are trying to clear their shorts before a big rise. Big rise because Russia and the East are moving to a gold standard. Panic in the market. See how next week goes.

  3. .50cal Feb 4, 2023 At 9:59 pm

    I saw the video on the hanging of Saddam. I do not think that was him.
    Reply Thank you indeed and Bin Laden also had 7 looks like ? Khamanie also has 7 looks like ?

      • OK 50cal,here it is:
        Queen Elizabeth and Ruth Ginsberg; Bill and Melinda Gates; Hillary Clinton and Trudeau; Marina Abramovic and Tom Hanks; Boris Johnson and Queen Elizabeth and Prince Philip and Jeb Bush and George Bush; VP Pence and Jared Kushner and John Kerry; Buhari and John Podesta; Angela Merkel and Lindsey Graham and Poroshenko; CNN’s Lemon; Chuck Schumer; Joe Biden and Pope Francis; Maxine Waters and VP Harris; Jerry Nadler and Fauci and Bernie Sanders; Barak Obama and Michelle Obama and Bill Clinton and Joe Biden; Zuckerberg; John Brennan and Hunter Biden and FBI’s Comey and AOC and Omar and Tlaib; Adam Schiff and Pelosi; Elon Musk; Zelensky; Soros and Erdogan; Madonna and Elton John; and Bibi.

  4. The Israeli States of America has cut off its nose
    to spite its face! The “Sanctions” against Russia
    cut off its Wee Willie, too!
    Shalom and Goodbye, ISA! ?

    • Dan, you comment on newspunch. Disqus is a pisraelie troll-farmed craphole. Been that way for a long time. Just a heads up.

      • Dan,
        Also, that Anonymous buttclown on newspunch/disqus chat, that always gets 2 downvotes. He deserves way more. He is probably one of them.

  5. I remember paying for mint tea by the glass in dirham. Russia does what is best for Russia. India does what is best for India. Bozobiden is an imbecile. I don’t blame anyone but our Imbecile-in-Chief! He was kreeping on some kid again today too. None of this crap going on would happen under Trump. Yeah, he needs to get off the vaxx BS, and admit he was mislead by traitors.

  6. When Saddam Hussein did this and he was elected and forced to Iraqis by UK and USA now
    we saw gulf war 1 and 2 …. Puppets of UK are good till they do not want them.. We saw that uncle Saddam was hanged for many he is still alive he had look alike of him at least 7 times… So a great third Shaking of Planet is coming you like it or not …. Global Martial Law is on time for all world..

Leave a reply

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.