The BRICS TimesMajor claims surround India’s procurement of Russian Crude Oil. While Donald Trump asserts India assured him it would stop buying Russian oil, Russia’s Deputy Prime Minister claims India is now using both the Ruble and the Chinese currency for oil payments.
President Donald Trump is making a big claim. He suggests India will now stop buying oil from Russia. However, Russia’s Deputy Prime Minister Alexander Novak presents a different picture. He states Russia remains a top supplier of crude oil to India. Novak even claimed India is using the Chinese Yuan for Russian Oil Import payments. This is in addition to using the Ruble.
Novak: ‘Chinese Currency Payment Share is Small’
Russian Deputy PM Alexander Novak spoke to the state news agency TASS on Wednesday. He confirmed India started some payments for Russian oil in Chinese Yuan. Nevertheless, he noted most transactions still use the Russian currency, the Ruble. Novak made a significant statement, “I know that such payments have begun, and I believe that the percentage is currently small.” Earlier reports suggested India primarily paid for Russian oil using the Indian Rupee.
Second Largest Buyer After China
According to the report from the Centre for Research on Energy and Clean Air (CREA), India was the second-largest buyer of Russian Crude Oil in September. China topped the list. Western sanctions on Russia after the 2022 Ukraine invasion boosted alternative currencies. These include the Yuan and the UAE Dirham for settling oil trades, says a Reuters report. The US Dollar traditionally dominated these trades.
Increased Russian Oil Purchase Post-Ukraine War
India traditionally relied on Middle East crude oil. It significantly ramped up its Russian oil imports following the Russian invasion of Ukraine in February 2022. A major reason for this increase is Russia offering crude oil at discounted prices. Due to Western sanctions and decreased European demand, Russian Oil carries heavy discounts. This has caused Russian crude oil imports to rise dramatically. The share grew from less than 1% to about 40% of India’s total crude oil imports in a short period.
Trump’s Assertions
Russian Deputy PM Alexander Novak discusses India’s increased Russian oil purchasing and even using Chinese currency for payment. Conversely, Donald Trump raised concerns at the White House. He spoke about India’s continued Russian crude oil imports with Prime Minister Narendra Modi.
He further claimed that PM Modi “assured me today that they won’t be buying oil from Russia.” “That’s a big step,” he added. He then said, “Now we have to get China to do the same thing.” However, there has been no official statement from India regarding Trump’s claims.
