MY KOLKATA EDUGRAPH
ADVERTISEMENT
regular-article-logo Sunday, 16 June 2024

UltraTech buys Russian coal

The increasing use of the yuan to settle payments could help insulate Moscow from the effects of Western sanctions imposed on Russia over its invasion of Ukraine

Reuters New Delhi Published 30.06.22, 03:28 AM
Representational image

Representational image Library

India’s biggest cement producer, UltraTech Cement, is importing a cargo of Russian coal and paying with Chinese yuan, according to an Indian customs document reviewed by Reuters, a rare payment method that traders say could become more common.

UltraTech is bringing in 157,000 tonnes of coal from Russian producer SUEK that loaded on the bulk carrier MV Mangas from the Russian Far East port of Vanino, the document showed. It cites an invoice dated June 5 that values the cargo at 172,652,900 yuan ($25.81 million).

ADVERTISEMENT

Two trade sources familiar with the matter said the cargo’s sale was arranged by SUEK’s Dubai-based unit, adding that other companies have also placed orders for Russian coal using yuan payments.

The increasing use of the yuan to settle payments could help insulate Moscow from the effects of Western sanctions imposed on Russia over its invasion of Ukraine and bolster Beijing’s push to further internationalise the currency and chip away at the dominance of the dollar in global trade.

The sources declined to be identified as they are not authorized to speak to the media.

UltraTech and SUEK did not respond to a request seeking comment.

“This move is significant. I have never heard of any Indian entity paying in yuan for international trade in the last 25 years of my career. This is basically circumventing the dollar,” a Singapore-based currency trader said.

The sale highlights how India has maintained trade ties with Russia for commodities such as oil and coal despite the western sanctions.

Follow us on:
ADVERTISEMENT