Reuters found out how India bought Russian coal for Yuan.
Recently, a cement manufacturer from India Ultratech purchased from the Russian company SUEK more than 150 thousand tons of coal for the amount of 172.7 million yuan ($ 25.74 million). The transaction was attended by the largest private creditor of India, HDFC Bank. There is no assumption that the purchase, the details of which were not previously reported, in any way violates the sanctions imposed against Russia after its invasion of Ukraine.
According to Reuters, the permit for the transaction was issued by the suburban branch of the HDFC bank in Mumbai. In the documents that the agency studied, Suek asks Ultratech to transfer 172.7 million yuan to the SUEK account in the Shanghai branch of the China Everbright Bank. As a corresponding bank, the Russian company indicated the Hong Kong branch of the international creditor HSBC. He acted as an intermediary when transferring money from one bank to another.
The wider use of the yuan for payments can help Moscow in the round of sanctions and support Beijing to further internationalize the yuan and weaken the dominance of the US dollar in world trade.
The agency notes that the Indian company insfinces a deal with a non -Chinese company in the Yuan. However, in the current conditions, when it is impossible to pay for Russian accounts in dollars, companies are forced to use this path to resolve trade.