Indian oil firms resume yuan payments for Russian crude
Indian state-run oil companies, led by IOC, have started using Chinese yuan again to pay for Russian oil shipments.
This comes after a pause earlier this year because of tense India-China relations.
The switch signals warming ties between the two countries, with traders now preferring yuan payments from Indian buyers.
Why yuan?
Western sanctions on Russia (since 2022) made it tricky to use regular payment routes, so alternatives like the yuan and UAE dirham became popular for Russian oil deals.
Even though prices are still set in US dollars due to EU rules, paying directly in yuan makes things smoother and cheaper for Indian refiners—no extra currency conversions needed.
What's next for India-China energy ties?
India has become one of Russia's top crude buyers since 2022, despite global pressure.
Private refiners kept using yuan even when state-run ones paused.
Now that payments have resumed—and with direct flights and official visits happening again—it looks like India and China are finding more ways to work together on energy deals.