Overview

Click to expand overview
BRICS members India and Russia initiated crude oil deals worth billions of dollars between February 2025 to December 2025. India saved nearly $7 billion in two years by procuring oil in Indian refiners including the Indian Oil Corp (IOC) have started settling payments for oil with China using the Chinese Yuan. The oil was procured from Russia and

Are BRICS nations like China and India moving to ditch the US dollar in favor of alternative currencies for oil transactions? Recent reports suggest a significant shift, with potentially huge savings. BRICS members India and Russia initiated crude oil deals worth billions of dollars between February 2025 to December 2025. This move aims to reduce reliance on the USD and strengthen intra-BRICS economic cooperation.

The potential impact is substantial. One key benefit is cost reduction. India saved nearly $7 billion in two years by procuring oil in alternative currencies. This showcases the immediate financial advantages of bypassing the US dollar in international trade, bolstering their economy.

The shift is not just about Russia and India. Indian refiners including the Indian Oil Corp (IOC) have started settling payments for oil with China using the Chinese Yuan. The oil was procured from Russia and highlights a growing trend of using local currencies for trade within the BRICS alliance. This includes paying for Russian crude in Yuan, further diminishing the US dollar's dominance in global energy markets. The implied estimated yearly saving is around $8.5 billion when using the reported time period. This shift represents a substantial saving of over $17 billion when calculating the impact over a two year period. This represents not just cost savings but greater financial independence and reduced exposure to US financial policy.

This move represents a strategic realignment in global finance, potentially reshaping the landscape of international trade and the role of the US dollar. Stay informed about the evolving dynamics of BRICS and the implications for the global economy.

Top Sources

Related Articles