Oil Deals Between India and Russia Threaten Dollar’s Dominance

• India-Russia oil deals are being settled in non-U.S.-denominated currencies, eroding the dollar’s decades-old dominance of international oil trade.
• Oil traders and banking sources estimate that these deals have accounted for “several hundred million dollars” in transactions between the two countries.
• Despite this, experts such as Daniel Ahn argue that these efforts are only “transitory gains” and won’t have much effect on Western sanctions or the dollar’s strength.

India-Russia Deals Erode Dollar Dominance in International Oil Trade

Western sanctions on Russia and its oil trading with India has resulted in a decrease of the U.S. dollar’s long-term hold on international oil trade. According to Reuters, Indian customers are paying for Russian oil entirely in non-U.S.-denominated fiat currencies, such as the United Arab Emirates (UAE) dirham. Sources say these deals have amounted to „several hundred million dollars“ over the past three months.

BRICS Nations Undermining US Dollar

Analysts and economists suggest that Brazil, Russia, India, China, and South Africa (collectively known as BRICS nations) are attempting to undermine the U.S dollar by settling their financial transactions outside of it. This is not the first time accounts allege that India is getting discounted prices from Russia for crude oil; it has been reported various times last year that a price cap of $60 per barrel was put into place when trading between the two countries began taking place again after a period of tension between them following an Indian airstrike on Pakistan territory in February 2019..

Former Chief Economist at State Department Comments

Daniel Ahn, former chief economist at the U.S State Department noted that despite India-Russia trades weakening its dominance in international markets –the U.S Dollar still remains unmatched in terms of strength–calling Russia’s attempts at selling their goods with other currencies „transitory gains“. He also indicated that these moves will not pose a significant threat to Western sanctions or overall economic power held by America’s currency due to its global reach and acceptance among consumers worldwide .

Oil Finding Its Way Back To European Petrol Stations

It has also been alleged that a great deal of oil is simply finding its way back to European petrol stations after India allegedly sells it for premium prices; however there has yet to be concrete evidence found confirming this claim made by several sources throughout 2020 .


Although some progress has been made towards undermining US Dollar’s continued monopoly , experts agree there is still much work left before other currencies can compete against it on a global scale –especially considering its widespread acceptance among consumers worldwide .