India's government has signaled more unease about using the Chinese yuan for Russian oil imports, causing payments to be postponed on a number of crude deliveries,
sources told Reuters.
Although Russian firms are continuing to deliver crude supply, seven cargoes have yet to be paid for, as India's state-owned refiners seek yuan alternatives, the report said.
Part of the reason stems from increased costs that come with using the yuan, as Indian refiners must first convert their rupees into Hong Kong dollars, and then yuan. The mechanism is 2%-3% costlier than using the UAE's dirham, a currency India has shown a preference for.
Added to that, some in India see the yuan's use as a boost for China, which is at geopolitical odds with New Delhi. The two countries continue to dispute over their border, with
troops clashing last year.
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