India faces complex payment situation as Russian oil tops $60/barrel cap
India finds itself in a challenging predicament regarding the payment crisis with Russia as the price of Russian Urals grade oil has breached the West’s price cap of $60 per barrel.
India so far has paid for Russian oil in dollars. However, this is no longer feasible due to the Urals grade oil price exceeding the G7 nations’ fixed cap, as reported by Businessline (BL). The country’s public sector oil companies (PSUs) are refraining from using Chinese currency for payments, as the Indian government is reluctant to strengthen China’s currency. The private sector could pay in Chinese yuan; however, obtaining enough from the international market may prove difficult due to limitations in currency convertibility.
