NEW DELHI, Aug 11 ― Indian companies are using Asian currencies more often to pay for Russian coal imports, according to customs documents and industry sources, avoiding the US dollar and cutting the risk of breaching Western sanctions against Moscow.
Russia became India's third-largest coal supplier in July, with imports rising by over a fifth compared with June to a record 2.06 million tonnes. The yuan accounted for 31 per cent of the non-US dollar payments for Russian coal in June and the Hong Kong dollar for 28 per cent. The euro made up under a quarter and the Emirati dirham around one-sixth, the data from the trade source showed.
For deals in a currency other than the dollar, lenders would potentially have to send dollars to bank branches in the country of the original currency, or banks they have tie-ups with, in exchange for that currency to settle the trade.
Rival steelmaker Arcelormittal Nippon Steel India shipped in 35,000 tonnes of Russian anthracite coal using euros, a customs document dated June 15 showed.Two Indian customs documents from last month reviewed by Reuters showed that Indian companies agreed to pay for Russian coal using Hong Kong dollars and Emirati dirhams.
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