Russia India Oil: Dollar piled up in front of India-Russia friendship, American empire in danger, superpower’s ‘sun’ will set! – ukraine russia war news india oil deals with russia dent decades old us dollar dominance in world
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According to a Reuters report, US sanctions on Russia pose a threat to the dominance of the dollar. For the past several decades, India has been paying in dollars to buy oil. Dollar has been the world’s most accepted currency for business. After the Ukraine war, many types of sanctions have been imposed on Russia. To deal with this, India has started trading oil in a third currency which has proved to be very successful. India is the world’s third largest oil buyer and now Russia has become the main supplier of oil.
India-Russia broke the restrictions
According to the report, India has paid money in exchange for Russian oil in non-dollar currency, which includes the United Arab Emirates’ currency Dirham. Not only this, India has also recently paid in ruble. According to sources, India has paid crores of dollars in recent times. No information about this change was revealed earlier. Earlier, the G-7 countries had imposed a price cap on Russian oil so that Russia would get less money in exchange for oil. Three banks in India have supported some payments.
At the same time, Russia is trying to reduce its economy’s dependence on the dollar and avoid trade sanctions. However, now it may be difficult for India to pay in UAE currency. The reason for this is that the US and Britain have also included Russia and UAE-based Russian bank MTS in the list of sanctions last month. The report quoted sources as claiming that with the help of MTS, India paid the money for the purchase of oil in non-dollars. 
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IMF also warned on dollar
Even after these sanctions, India and Russia are committed to the oil deal. Paying in dollars in exchange for oil has become a decades-long practice around the world. Due to this bet of India and Russia, the dominance of dollar, the symbol of American power, is in danger. Daniel Ahn, who was the chief economist in the US State Department, says that there is no break to the strength of the dollar, but sanctions on Russia can damage the financial system of Western countries. Also, the purpose for which the restrictions have been imposed will not be fulfilled.
India and Russia are now working on a system to link each other’s banking systems. State Bank of India has opened a foreign currency account in Russia. This is how Russian banks have done in India. IMF Deputy Director Geeta Gopinath had also warned recently that the imposition of sanctions on Russia would weaken the dominance of the dollar and create smaller trading blocks. These countries will promote trade in their currency.
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