India is one of the largest buyers of Russian oil, but recently there has been a disagreement between India and Russia over settlement issues. In order to solve this problem, Indian Foreign Minister S Jaishankar paid a special visit to Russia, but the Russian side did not make further representations with him. After the news broke, it was reported that some Russian oil tankers could not unload their cargo during the Yugoslav docking. According to Russia**, due to the tightening of sanctions and the inability to resolve payment and settlement issues, six Russian oil tankers will not be able to dock at Indian ports to complete deliveries, and two of them may even change their course to China. In this regard, the Indian side said that the reason is that the ** company in the Russian Far East did not open a bank account in the UAE as agreed, which led to the inability of Indian buyers to make payments in UAE currency. However, this statement was questioned by the Russian side, which believes that the Indian side has not fulfilled its obligations in accordance with the agreement.
Oil** between India and Russia is an important part of the economic exchanges between the two sides. Recently, however, there have been serious settlement problems between India and Russia. Both Russia and India hope to complete the deal smoothly, but differences and contradictions between the two countries are gradually emerging.
In order to find a solution, Indian Foreign Minister S Jaishankar personally traveled to Russia in the hope of negotiating with the Russian side and finding ways to cooperate. However, the Russian side did not give the expected response to the Indian side. Shortly after Jaishankar's departure, the Russian side issued new directives to its own oil tanker, which sparked concern and speculation from the outside world.
According to reports, some Russian oil tankers were originally scheduled to sail to the Indian port of Wadenal but were unable to unload their cargo and anchored in southern Sri Lanka for long periods of time. The ship was loaded with about 5 million barrels of Russian**, and failure to complete the delivery would cause serious losses to the Russian side. Although Russia and India have not given a clear response to this matter, it is widely believed that this is a manifestation of the settlement problem between India and Russia.
The Indian side said that the reason for the delivery problem was that the ** company in the Russian Far East did not open a bank account in the UAE as previously agreed, resulting in Indian buyers not being able to pay in UAE currency. However, the Russian side questioned this and believed that the Indian side had not fulfilled its responsibilities under the relevant agreements in advance. This controversy has further heightened tensions between Russia and India.
The settlement issue between India and Russia is not a purely commercial dispute, but involves economic and political considerations between the two parties. International ** is essentially a complex and delicate game, and every transaction involves the trade-off of interests and costs of all parties. Against this backdrop, both parties seek maximum benefits and advantages and are reluctant to trade at a loss.
The Indian side has always hoped that the Russian side would accept the UAE currency for settlement, which in fact is a test of the Russian side. As a minor currency, the UAE currency is not as widely used internationally** as the US dollar or the Chinese yuan. Therefore, if the Russian side accepts the UAE currency, the Indian side may want to settle the transaction in rupees next time. However, based on past experience, the Russian side has found it not cost-effective to accept Indian rupees, so all orders for Indian oil imports over the past year have not been settled in rupees.
On the other hand, the UAE currency and rupee are relatively less recognized in the international financial markets and less liquid than the US dollar or the yuan. This has brought a series of troubles to the Russian side. As a large economy, Russia needs to consider the impact of exchange rate risks and increased transaction costs. In addition, the Russian side needs to consider the issue of converting the currency it receives into a more liquid currency, which may introduce additional costs and risks.
In contrast, the renminbi, as a currency that is used more frequently in the international **, has more advantages for the Russian side. In addition, China is also Russia's main partner, and the amount between the two countries is increasing. Therefore, if the Russian side can accept the yuan for settlement, it will contribute to the facilitation of the relationship between Russia and China and further strengthen the economic relations between the two countries.
In conclusion, the oil issue between India and Russia is not only about commercial interests and disputes, but also reflects the differences and trade-offs between the two sides on the settlement issue. India's over-pursuit of short-term interests could lead to damage to relations with Russia. The Russian side, while considering the risks and benefits, prefers to choose the yuan as the settlement currency in order to obtain greater benefits. It is crucial for both parties to find a balanced and win-win solution. The renminbi will not only bring more benefits and convenience to Russia, but also promote cooperation between China and Russia.