On June 30, India’s largest cement producer is paying for a shipment of Russian coal using the Chinese yuan.
A customs document shows that Indian cement producer Ultra Tech imported 157,000 tonnes of coal from Russia at a price of RMB 172.6 million, with the invoice date for the transaction being June 5. A currency trader said that in his 25-year career he had never before heard of any Indian entity whose international trade was settled through the yuan. According to the source, other companies will then intend to order Russian coal in yuan as well.
Since the Russo-Ukrainian war, Russia has been excluded from most of the financial system because of the sanctions imposed by the West. Russia has tried to bypass the sanctions and circumvent the dollar. India has never condemned Russia’s invasion of Ukraine and has increased the volume of commercial transactions between the two countries, particularly in the area of energy trading. In fact, after circumventing the US dollar and everything associated with CCP, a clean digital currency would be the ideal place to go.