According to multiple oil trading and banking sources, India’s oil deals with Russia during the Ukraine War dented decades-old dollar dominance.
US-Ied international sanctions on Russia have begun to erode the dollar’s decades-old dominance of international oil trade as most deals with India – Russia’s top outlet for seaborne crude – have been settled in other currencies.
The dollar’s pre-eminence has periodically been called into question and yet it has continued because of the overwhelming advantages of using the most widely- accepted currency for business.
India’s oil trade, in response to the turmoil of sanctions and the Ukraine war, provides the strongest evidence so far of a shift into other currencies that could prove lasting.
The country is the world’s number three importer of oil and Russia became its leading supplier after Europe shunned Moscow supplies following its invasion of Ukraine began in February last year.
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After a coalition opposed to the war imposed an oil price cap on Russia on December 5, Indian customers have paid for most Russian oil in non-dollar currencies, including the United Arab Emirates dirham and more recently the Russian rouble, multiple oil trading and banking sources said.
According to a claim by the Ukrainian Center of National Resistance, Russia is mobilizing drug addicts to fight in order to reach its quota.
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