This content was partly produced in Russia where the law restricts coverage of Russian military operations in Ukraine
Russian banking source says pointless to receive rupees
Russia has more use for China39;s yuan
Analysts say more Indian exports to Russia could help
Increased oil price cap scrutiny aggravates the problem

MOSCOWDELHI, Nov 27 Reuters One of Russia39;s most lucrative oil trade routes since the imposition of Western sanctions over the Ukraine conflict faces a major challenge because of the drawbacks of payment in currency other than dollars, with no shortterm solution in sight.

For decades, the U.S. dollar has been the currency of international oil trade and efforts to find alternatives have been thwarted by the difficulties of conversion, as well as political obstacles.

The problems flared when India which has become Russia39;s biggest buyer of seaborne oil since European customers retreated insisted in July on paying in rupees and the trading activity nearly fell apart, according to three sources familiar with the matter.

The sources, who requested anonymity, said the Russian oil suppliers who also could not be named because of the issue39;s sensitivity could not do deals in Indian rupees because of informal guidance from the Russian central bank it would not accept the currency.

One Russian banking source close to the Russian central bank said receiving revenue in a nonconvertible currency with little value outside India was pointless. Russia…