BRICS Economies Slash Costs with Non-Dollar Oil Deals
BRICS nations such as China, India, Saudi Arabia, and the UAE are reaping significant benefits from the economic sanctions imposed on Russia by the United States. B
Both BRICS members, China and India, have opted to buy oil from Russia using their local currencies instead of the US dollar, resulting in cost savings due to favorable exchange rates. This shift in trade dynamics has far-reaching implications for the sectors in the United States that rely on BRICS countries using the US dollar.
China has saved approximately $10 billion by conducting oil trade with Russia using the Chinese Yuan for settlements. Similarly, India has saved around $7 billion by purchasing oil at discounted rates from Russia since February 2022. India has acquired crude oil valued at $186.45 billion from Russian suppliers through channels involving transactions with China.
Furthermore, Saudi Arabia has been procuring crude oil from Russia at reduced rates and opting to use various methods to facilitate transactions across Europe. The Kingdom has expressed its willingness to accept local currencies for oil transactions instead of the US dollar, exerting further pressure on the international use of the USD.
Consequently, Russia, a BRICS member, is effectively circumventing sanctions by accepting local currencies instead of the US dollar for its oil sales. In summary, the combined efforts of India and China have led to savings of approximately $17 billion by reducing their reliance on the US dollar for oil purchases.
Additionally, India has established an oil deal with the UAE, using the Indian Rupee for the procurement of millions of barrels of oil instead of the US dollar. BRICS countries are collectively achieving substantial cost savings by moving away from the US dollar for cross-border transactions.