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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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Established in 2006 as a Community of Reality

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    Indian refiners pay the price of Russian oil in an Arab currency instead of the dollar

    Rocky
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    Indian refiners pay the price of Russian oil in an Arab currency instead of the dollar Empty Indian refiners pay the price of Russian oil in an Arab currency instead of the dollar

    Post by Rocky Sat 04 Feb 2023, 5:29 am

    Indian refiners pay the price of Russian oil in an Arab currency instead of the dollar

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    Economy News-Baghdad
    Four informed sources said that Indian refining companies have begun to pay the price of most of the Russian oil that they buy through Dubai-based trading companies in UAE dirhams instead of US dollars.
    While India does not recognize Western sanctions against Moscow, and its purchases of Russian oil may not have violated them anyway, banks and financial institutions are careful about settling payments so as not to inadvertently fall foul of the many measures imposed on Russia for the invasion of Ukraine.
    Indian traders and refiners are concerned about the inability to continue settling transactions in dollars, especially if the price of Russian crude rises above a ceiling imposed by the Group of Seven nations and Australia in December.
    This prompted them to look for alternative methods of payment, which could also help Russia in its efforts to de-dollarize its economy in response to Western sanctions.
    Previous attempts by Indian refiners to pay trading companies for Russian crude oil in dirhams through Dubai banks failed, forcing them to revert back to the US currency.
    But the sources told Reuters that the state bank of India, the country's largest, is now clearing the payments in dirhams, and provided details of previously undisclosed transactions.
    The Indian bank, which has branches abroad including in the United States, did not respond to requests for comment.
    A G7 price cap prohibits any Western company, such as the insurance and shipping providers that support much of the world's trade, from participating in the Russian crude oil trade if the purchase price is above $60 a barrel at the point of loading in Russia. This remains the case even if the oil is destined for countries such as China and India that do not recognize this ceiling.
    The shift to payments in dirhams also came about because the State Bank of India required refiners seeking payments in dollars to provide details of oil, freight and insurance costs, allowing it to scrutinize the trade and avoid breaching the price cap.
    “The State Bank of India is very cautious in its approach,” said one of the sources, even though New Delhi does not follow a rate cap mechanism and Western insurance and freight are not used in deliveries.
    Indian refiners usually buy Russian crude at a price that includes delivery to India.
    Most Indian refiners buy Russian crude from Dubai-based trading firms such as Everest Energy and Litasco, a unit of Russia's oil giant Lukoil.


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    Added 02/04/2023 - 12:37 PM
    Updated 02/04/2023 - 2:27 PM


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