According to three sources with knowledge of the situation, Indian refiners are still purchasing Russian oil in dollars since Dubai’s Mashreq Bank refused to process payments from at least two refineries in UAE dirhams at the supplier’s request.
Due to sanctions imposed by the US and its allies as a result of Russia’s invasion of Ukraine, some of Moscow’s customers have been required to pay in currencies other than the USD and EUR, which are typically used to price its contracts.
At least two Indian companies were asked to pay in dirhams in July by traders who dealt in Russian oil.
The value of the oil payments was estimated on an invoice from one of the refineries that “Reuters” saw, even though the payment was requested in dirhams.
The invoice states that payments will be sent to Gazprom through the correspondent bank in Dubai, Mashreqbank.
Apparently, Mashreqbank has a location in New York, as stated on its website.
According to the three sources, Mashreq rejected the transaction, therefore the dirham payments could not be accepted.
The cause was not known to Reuters.
Requests for comment from the US Treasury, Mashreq Bank, and Gazprom Bank were not immediately fulfilled.
One of the sources claimed that the final dollar payments were processed by the State Bank of India branch in Abu Dhabi.
An email from Reuters seeking comment received no response from the State Bank of India. .
Indian refineries purchase Russian oil in dollars after failing to pay in dirhams.
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