UltraTech Cement pays for Russian coal shipment in yuan

UltraTech Cement has reportedly paid for a shipment of Russian coal in Chinese yuan, raising questions over whether this will now become the norm. The cement producer is importing 157,000t of coal from Russian company SUEK at a value of CNY172.65m (US$25.8m). The coal was loaded onto the bulk carrier MV Mangas in the Russian port of Vanino and is currently at anchor near the port of Kandla, reports The Hindu.

The news is being described by one Singapore-based trader as "significant" as it could be seen as helping to protect Russia from the effects of western sanctions imposed on the country. "This is basically circumventing the US dollar," the trade told the newspaper. Other companies have also reportedly placed orders for Russian coal using Chinese yuan, suggesting that India has retained it ties with Russian for commodities such as coal and oil, despite the restructions imposed by the west over Russia's invasion of Ukraine.