“Why should we declare that to them especially since we buy on a delivered basis,” said an official, who declined to be named. The prices are in dollars and they just need to be converted in dirham and rouble during payments, he added.
Except the change in currency, no other significant changes have been made in the payment channel, he said. The Swift payment mechanism remains unhindered, he added. India has also put in place a rupee payment mechanism, but refiners are unable to use it primarily because of a major trade imbalance between India and Russia. Russia hasn’t been keen on receiving payments in rupees so far.
Other Indian refiners, too, are switching away from the dollar to dirhams and roubles for Russian oil payments, another person familiar with the matter said.
“Crude continues to flow, ” the person cited above said, in reference to rising Russian oil imports. Russia is now the largest crude exporter to India.