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Russia is having problems receiving payment for oil supplies to India in Emirati dirhams.
Source : Reuters citing sources
Details : Deliveries of Russian Sokol crude to Indian Oil Corp (IOC.NS) are delayed due to payment problems, forcing India's largest refiner to use its reserves and buy more oil from the Middle East.
IOC is the only state-owned refinery that has an annual agreement to buy various Russian grades of oil, including Russian oil company Rosneft's Sokol.
According to sources, Sokol oil is supplied to the IOC by Sakhalin-1 LLC, part of Rosneft.
Indian state-owned refiners are paying Russia in United Arab Emirates dirhams after the government advised them to stop using the Chinese yuan, although private refiners still pay in yuan due to a lack of alternative.
Payments to the IOC for oil from the Sokol field were complicated due to the fact that Sakhalin-1 LLC was unable to open a bank account in the UAE to accept payments in dirhams.