OMCs consider paying in Yuan for Russian crude

India’s state oil refiners Bharat Petroleum Corp. and Hindustan Petroleum Corp. are considering paying for Russian crude in yuan in an effort to widen their currency options.

Most payments are currently made in dirhams and dollars, and the risk that the use of these currencies for trade with Russia will be stopped is making the refiners look for alternatives, officials from the two companies said, asking not to be identified due to the sensitivity of the matter.

India’s oil imports from Russia hit a record 2.2 million barrels a day in June, rising for a 10th month in a row and exceeding the combined shipments from the next two largest providers Saudi Arabia and Iraq, according to Kpler data. New Delhi has benefited from discounted purchases as many other nations shun Moscow’s crude following the war in Ukraine. Russia in turn has found a ready buyer.

Indian Oil Corp., the biggest state refiner, paid in yuan for Russian purchases last month, Reuters reported. The HPCL and BPCL executives said they weren’t aware of any payments in the Chinese currency.