The largest Indian manufacturer of Cement UltRatech Cement bought coal for Yuan from Russia, reports Reuters.
According to the customs documents studied by the agency, the company bought and delivered to India 157,000 tons of coal from the Russian manufacturer SUEK. The cost of the cargo is estimated at 172 652 900 yuan ($ 25.81 million). Two unnamed sources said that the sale was organized by a SUEK unit located in Dubai. According to them, there are other companies that have placed orders for the purchase of Russian coal for yuan.
“This is an important step. Over the past 25 years of my career, I have never heard that any Indian organization paid in the yuan for international trade. In fact, this is a detour of the US dollar,” said Singapore currency trader, whose name is not called.
Experts say that the payment of Russian minerals and other resources in the yuan can be a common practice for those who do not want or cannot use the dollar. This will help Moscow bypass Western sanctions imposed after the outbreak of war in Ukraine. Also, such a practice will help Beijing make Yuan one of the world currencies, weakening the dominance of the dollar in world trade.