India Begins Paying Iranian Oil in Chinese Yuan Currency

India has started paying for Iranian oil in Chinese yuan, marking a significant shift in its payment system. This move comes as refiners use alternative methods under temporary US sanctions relief. It highlights changes in global energy trade and financial routes.

According to Reuters, Indian refiners are using a payment system through ICICI Bank in Mumbai. The bank is transferring funds via its Shanghai branch to settle payments in Chinese yuan. This system helps bypass restrictions linked to sanctions.

Furthermore, sources said the United States recently granted a 30-day waiver for Russian and Iranian oil purchases. This was aimed at controlling rising global oil prices during ongoing geopolitical tensions. The waiver temporarily allowed limited trade under strict conditions.
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In addition, India’s state-owned Indian Oil Corporation reportedly bought nearly 2 million barrels of Iranian crude oil worth about $200 million. This marked India’s first official Iranian oil purchase in seven years. It signals a cautious return to trade between the two countries.

Finally, India begins paying Iranian oil in Chinese yuan currency as part of a complex global trade adjustment. The arrangement shows how sanctions are reshaping payment systems and energy markets. Analysts say such mechanisms may expand if restrictions and price pressures continue.