Indian refi ners are exploring alternative mechanisms to pay for Russian crude oil with their government’s backing after benchmarkBrent prices broke above $80 per barrel recently.These measures include expanding the basket of currencies used to pay for Russian crude in order to circumvent local bankrequirements related to Western sanctions,and,in some cases,adopting other workarounds.The United Arab Emirates’dirham is emerging as the most popular alternative currency to the dollar,Indian refi ners say.The need to fi nd ways to maintain crude imports from Russia at recent levels of around 2 million barrels per day has increased,asRussia's main Urals grade has started to test the G7 price cap of $60/bbl for the fi rst time since it took effect on Dec.5.Brent has traded well above $80 this week,while hefty price discounts for Urals-which encouraged India's purchases over the pastyear-have narrowed to about $20 on an f.o.b.,or port of loading,basis.An offi cial at a state-controlled Indian refi ning company attributed the narrowing of the discounts to heavy buying of Urals by otherIndian refi ners and China,combined with a reduction in Russia's export volumes.
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