Saturday, August 23, 2025

Latest

India Using Asian Currencies Instead of Dollar to Buy Russia’s Coal

The West’s campaign in choking Russia’s economy from the rest of the world appears to be backfiring. In fact, Washington’s myopic efforts are so poorly thought out, that the sanction sandwich it imposed against Moscow is slowly eroding away at the US dollar’s global dominance.

With western nations and the EU now shunning Russian commodities in an effort to minimize the amount of capital going into Putin’s war machine, other countries are seeing an opportunity to buy cheap imports from the post-soviet country. Since the beginning of the war in Ukraine, India has strategically ramped up purchases of Russian oil and coal, ultimately lessening Moscow from the blow of sanctions while also securing important raw materials at copious discounts.

According to customs documents seen by Reuters, Russia was India’s third-biggest supplier of coal as of July, with shipments increasing by more than one-fifth from the previous month to a record 2.06 million tonnes. To pay for the coal, India has been using other currencies to circumvent the US dollar and subsequent repercussions from western sanctions. At least 742,000 tonnes of coal imported from Russia in June was paid for with other currencies, including the yuan which accounted for 31% of the non-greenback payments, the Hong Kong dollar which equaled 28%, as well as the euro and the Emirati dirham, which made up 25% and one-sixth of the payments, respectively.

The US dollar accounts for the majority of India’s foreign reserves and has been the main currency used to pay for commodity imports. In order to conduct trade with non-US dollar currencies, lenders have to go through a labyrinth of steps, including sending dollars to banks located in the country of the currency’s origin in exchange for the currency required for trade. But, despite the complexity, traders are still increasingly distancing themselves away from the dollar.

Reuters cited traders located in India and the EU that purchase Russian coal on behalf of their domestic customers, who said they expect the share of non-dollar transactions for the commodity to rise as banks and other entities devise other ways of avoiding the negative impact of tightening sanctions.

Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Aya Gold Q2 Earnings: Production Slips Amid Ramp Up

i-80 Gold Q2 Earnings: Better, But Not Great

Artemis Q2 Earnings: Strong Start For A New Operator

Recommended

Emerita Resources Expands El Cura Drill Program By 10,000 Metres As Deposit Remains Open For Expansion

ESGold Signs MOU For Tailings Project In Colombia With Grades Up To 42 g/t Gold, 280 g/t Silver

Related News

Qyou Media Becomes The Top Ranked Youth Channel In Engagement In India

QYOU Media (TSXV: QYOU) has closed 2020 off on a high note, with the company...

Monday, January 11, 2021, 08:22:29 AM

Coal Prices Bolstered By European Energy Crisis

So far, the year 2022 in the investment world may be best described as an...

Saturday, June 25, 2022, 03:05:00 PM

Trump Threatens Russia With 100% Tariffs Unless Ukraine Peace Deal Reached in 50 Days

President Donald Trump has tied an economic deadline to the battlefield, warning that Russia will...

Tuesday, July 15, 2025, 12:50:00 PM

Russian Oil Executive Critical of Ukraine War Dies After Falling From Hospital Window

A prominent Russian oil executive has died after falling from a hospital window in Moscow,...

Thursday, September 1, 2022, 01:28:00 PM

Despite Gas Delivery Suspension To Poland And Bulgaria, Gas Prices Hit Lower Highs In Europe

On April 27, Russia decided to further escalate tensions with the West by announcing its...

Sunday, May 1, 2022, 03:12:00 PM