(March 16): India is reportedly planning to buy Russian oil at discounted prices and even considering the Chinese yuan as a reference currency in an India-Russia payment settlement mechanism, a move that Chinese analysts say represents the growing frustration among world economies over the US-led sanctions against Russia that have rattled global markets, Global Times reported.

The reported plans come as India has been shrugging off pressure from the US to join in its sanctions against Russia, despite growing diplomatic ties between the two countries. This also underlines a trend of countries working to seek alternatives to US-dominated global financial mechanisms to fend off risks as they have been repeatedly weaponized, analysts noted.    

One of the issues to be ironed out is in what currency the trade will be settled, and Livemint, an Indian news outlet, reported that India and Russia are exploring the possibility of using the yuan as a reference currency to value a rupee-ruble trade mechanism. The outlet cited unidentified Indian government officials Global Times reported.

The rupee-ruble trade mechanism will allow Indian exporters to be paid in rupees for their exports to Russia instead of dollars or euros amid sanctions against Moscow. However, there have been concerns as neither the Russian nor Indian currencies are widely used in international trade. 

Following Indian officials' consideration of using the yuan, Chinese experts also flagged the likelihood of using the yuan due to the currency's stable value and its status as the world's fourth most-traded currency after the US dollar, the euro and the pound, Global Times reported.