BRICS Rift: India Refuses Chinese Yuan for Russian Oil, Prefers US Dollar

Cracks are developing between the top three BRICS members India, China, and Russia over payment options for Russian crude oil. While India recently paid the Chinese Yuan to procure oil from Russia, the country is now refusing to put the Yuan ahead of the US dollar. BRICS member India is digging in its heels.

New Delhi: India has firmly rejected Russian oil suppliers' demands for payment in Chinese yuan for crude oil imports, according to a Bloomberg report. This tension arises as leading oil refiners in Russia are demanding payment in Yuan.

An executive from the state-run Indian Oil Company (IOC) said that five cargoes have been delayed as India refuses to pay the Chinese Yuan, Bloomberg reported. The three BRICS India is not happy with this push.

India's Stance: US Dollar Dominance and Geopolitical Considerations

The Modi administration is committed to using the US dollar and is not interested in adopting the Chinese yuan for payments. India wants to pay in US dollar, rupee, or dirhams, not yuan to avoid boosting it over rupee. India believes Russia and... what?

The preference for the US dollar underscores India's strategic alignment and reluctance to further bolster the Yuan's international standing. India saved $7 billion and aims to continue benefiting from existing financial mechanisms.

Delayed Shipments and Ongoing Negotiations

India has delayed 5 oil shipments from Russia rather than pay in yuan, highlighting the severity of the disagreement. The standoff raises questions about the future of BRICS cooperation and the potential impact on global energy markets. The unwavering stance against accepting the Yuan signals a deeper strategic calculation within India's energy policy.