Dollar gets another blow due to a new request from Russia

Dollar gets another blow due to a new request from Russia

An invoice seen by Reuters shows that the bill for the delivery of oil to a refinery was calculated in dollars, while the payment was requested in dirhams.

Russian oil company Rosneft pushes crude through trading firms including Everest Energy and Coral Energy to India, now the second largest buyer of Russian oil after China.

Russian crude at a bargain price

Imposed sanctions have prompted many oil importers to shun Moscow, pushing Russian crude prices to record discounts to other grades.

This gave Indian refiners, who rarely bought Russian oil due to high transportation costs, an opportunity to grab exports at deep discounts.

Moscow replaced Saudi Arabia as India's second-largest oil supplier after Iraq for the second consecutive month in June.

At least two Indian refiners have already settled some payments in dirhams, the sources said, adding that more would do so in the coming days.

The invoice showed that payments must be made by Gazprombank through Mashreq Bank, its correspondent bank in Dubai.

The United Arab Emirates, seeking to maintain a neutral position, declined to impose sanctions on Moscow, and the payments could further frustrate some in the West, already claiming that the UAE's position is unsustainable.

Earlier this month trading firms used by Rosneft began to demand payment in the dollar equivalent of dirhams, the sources said.

Rosneft, Coral Energy, and Everest Energy did not respond to Reuters emails seeking comment.

Moscow has new allies

Moscow wants to increase the use of non-Western currencies for trade with countries such as India, Minister of Foreign Affairs Sergei Lavrov said in April.

The country's finance minister also confirmed last month that Moscow could start buying the currencies of "friendly" countries, using such funds to influence the exchange rate of the dollar and the euro as a means of countering the ruble's sharp rise.

The Moscow Exchange is preparing to start trading in Uzbek sums and dirhams.

Dubai, the financial and business center of the Gulf, has emerged as a haven for Russian wealth.

India, also maintaining a neutral position, recognizes insurance from Russian companies and has offered classification to ships operated by a Dubai-based subsidiary of Moscow's largest shipping group to facilitate trade.

Last week India's central bank introduced a new mechanism for international trade settlements in rupees, which many experts see as a way to promote trade with countries under Western sanctions, such as Russia and Iran.