India is rejecting pressure from Russian oil suppliers to pay for crude imports in the Chinese currency as tensions between New Delhi and Beijing continue to simmer.
Russia has accumulated billions of dollars worth of rupee assets given its wide trade surplus with India, but it’s struggling to use the funds. At the same time, Russia’s demand for yuan has grown sharply in the past year as its economy becomes more reliant on China for imports. Russian businesses have been settling more of their trade in yuan, with the Chinese currency replacing the dollar as the most traded currency in Russia this year.
