U.S.-led sanctions on Russia hurt dollar’s dominance of international oil trade. India, Russia’s largest seaborne crude outlet, now settling most deals in non-dollar currencies. Indian oil trade shows strongest signs of a long-term currency shift.
Moreover, Transactions in the last three months total several hundred million dollars. Sources requested anonymity due to sensitivity. Russia’s sales to India are minor and do not appear to breach sanctions.
Indian banks backed some of the transactions to skirt sanctions. US and UK sanctions make dirham payments for Russian oil more difficult. The government is not asking India to stop buying Russian oil.
Accordingly , a Former State Department senior economist believes sanctions might harm the West’s financial institutions. Dollars become a “poison asset” for Russian firms. India overtook Europe as Russia’s main seaborne oil consumer last year.
