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Rupee Rouble Roulette: India buys oil from Russia and pays back in dirhams

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Russia is banking, no pun intended, on its friends – UAE and India – to brace itself from the tightening noose of sanctions from Western countries in the trail of its continued war on Ukraine.

While India has continued to do oil imports and trade with Russia, the latter has started to route payments through the UAE dirham, according to a Reuters report.

Russia is seeking payment in dirhams for oil exports to some Indian customers, three sources said and a document showed, as Moscow moves away from the US dollar to insulate itself from sanctions by America and its allies since the invasion of Ukraine began in late February.

An invoice seen by Reuters shows the bill for supplying oil to one refiner is calculated in dollars while payment is requested in dirhams.

Russian oil major Rosneft is pushing crude through trading firms including Everest Energy and Coral Energy into India, now its second biggest oil buyer after China.

Western sanctions have prompted many oil importers to shun Moscow, pushing spot prices for Russian crude to record discounts against other grades.

That provided Indian refiners, which rarely bought Russian oil due to high freight costs, an opportunity to snap up exports at hefty discounts to Brent and Middle East staples. Moscow replaced Saudi Arabia as the second biggest oil supplier to India after Iraq for the second month in a row in June.

Rupee-rouble

Payments in rupees from India is being funneled to Russia through the UAE exchange route.

The few Indian businesses and banks are taking a leaf from an old trade playbook they had relied upon during the US embargo on Iran. At least two Indian refiners have already settled some payments in dirhams, the sources said, adding more would make such payments in coming days.

India, also maintaining a neutral position, recognises insurance cover by Russian companies and has offered classification to ships managed by a Dubai-based subsidiary of Moscow’s top shipping group to enable trade.

India’s central bank last week introduced a new mechanism for international trade settlements in rupees, which many experts see as a way to promote trade with countries that are under Western sanctions, such as Russia and Iran. The invoice showed payments to be made to Gazprombank via Mashreq Bank, its correspondent bank in Dubai.

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The UAE has maintained a neutral position with Russia and is not part of the sanctions on Moscow. Many Russians have also even lapped up property in Dubai and are driving a momentum in the real estate market in the UAE.

Russia wants to increase its use of non-Western currencies for trade with countries such as India, its foreign minister Sergi Lavrov said in April.

The country’s finance minister last month also said Moscow may start buying currencies of “friendly” countries, using such holdings to influence the exchange rate of the dollar and euro as a means of countering sharp gains in the rouble.

The Moscow currency exchange is preparing to launch trading in the Uzbek sum and the dirham.

Russia’s state oil producer is also explored the idea of creating a trading venture in Dubai just like others who have a direct connection and are trying to work around the sanctions.

In June, Bloomberg cited a S&P Global Commodity Insight report that Litasco SA, a trading unit of Russia’s Lukoil PJSC, is looking at Dubai for a new head office. Litasco declined to comment at the time but said it would ensure it complied with all applicable sanctions.

Journalist for 25 years with leading publications in India and UAE such as The National, Mumbai Mirror, DNA, Indian Express and former Sports Editor of eIndia.com. Now managing editor of Headline.ae, part of MEMc (https://www.memc.co)

Announcements

Saudi Arabia to Host 2034 FIFA Men’s World Cup; 2030 edition to span three continents

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World soccer’s governing body, FIFA, has confirmed that Saudi Arabia will host the men’s FIFA World Cup in 2034, while the 2030 tournament will be held in Spain, Portugal, and Morocco, with special celebratory matches in three South American countries. The announcement was made on Wednesday by FIFA President Gianni Infantino following an extraordinary virtual Congress.

Both tournaments were awarded through uncontested bids and confirmed by acclamation. “We are bringing football to more countries, and the number of teams has not diluted the quality. It has actually enhanced opportunities,” said Infantino, highlighting the expanded global reach of the tournament.

The 2030 World Cup will be a landmark event, taking place across six nations and three continents. Morocco, Spain, and Portugal will serve as the primary hosts, while Uruguay, Argentina, and Paraguay will hold celebratory matches to mark the centenary of the inaugural World Cup, hosted by Uruguay in 1930.

While Argentina and Spain have previously hosted the tournament, Uruguay will host again for the first time in a century. Portugal, Paraguay, and Morocco will join the World Cup’s history as first-time host nations.

In 2034, Saudi Arabia will become the second Middle Eastern nation to host the FIFA World Cup, following Qatar’s 2022 edition. This milestone further cements the region’s growing influence in the world of football.

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Inaugural Sport Impact Summit champions global change through the power of sport

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The inaugural Sport Impact Summit (SIS) 2024 united over 200 global leaders, dignitaries, and changemakers at Atlantis, The Palm, Dubai, to champion the transformative power of sport in addressing critical global challenges, including climate action, sustainability, and human health.

The summit, held under the esteemed patronage of His Excellency Dr. Ahmad Belhoul Al Falasi, UAE Minister of Sports, and in the presence of His Excellency Sheikh Suhail Bin Butti Suhail Al Maktoum, Executive Director of the Sports Development Sector at the General Authority of Sports, provided an engaging platform for impactful discussions, innovative partnerships, and actionable solutions.

Key highlights included the UAE Ministry of Sport Masterclass, presented by Oxford SDG and Sport Impact, showcasing best practices in sustainability leadership. The summit also featured powerful stories of innovation and advocacy from organizations like McLaren, Deloitte, ATP Tour, Nitto, Sail GP, and Reflo, emphasizing the sport industry’s role in fostering environmental stewardship.

The event’s agenda also included:

-Moneyball Talk: Hosted by Dureka Carrasquillo, this session explored the evolving financial landscape of sustainability sponsorship in sports with insights from 1.5 Capital, SURJ, Udinese Calcio, and VTV Consulting.

-Player Power Panel: Featuring Justin Coghlan, Dominic Thiem, and Lucy Shuker, the panel highlighted athletes’ increasing influence in driving meaningful change.

-Biodiversity Tour: In partnership with Goumbook and Atlantis Dubai, this initiative highlighted the critical connection between sport and environmental preservation.-Mike Ford, Co-Founder of SIS, noted, “The overwhelming enthusiasm we’ve witnessed confirms the sporting world’s readiness to take bold action to address sustainability and human health challenges. This summit marks the beginning of a global movement. We are thrilled to announce a series of future masterclasses across the region and the launch of the Sport Impact Summit 2025, aligning with the Dubai Fitness Challenge next year.”

Sean Morris, Co-Founder of SIS, added, “The success of this summit underscores the collective power of sport and the necessity of collaborative action. This event has catalyzed partnerships and ideas that will shape the future of sustainability in sport, driving tangible progress toward a better world.”

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Etihad Airways adds 10 new destinations for 2025

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Etihad Airways, the national airline of the United Arab Emirates, announced the launch of ten new destinations starting in 2025.

The new destinations are Algiers, Atlanta, Chiang Mai, Hanoi, Hong Kong, Krabi, Medan, Phnom Penh, Taipei and Tunis. They will complement Etihad’s previously revealed new destinations for 2025: Prague, Warsaw, and Al Alamein.

Antonoaldo Neves, Etihad’s Chief Executive Officer, said, “Launching ten new destinations in a single day underscores our unwavering commitment to growing our airline with a fantastic route network and world-class, customer-focused service. This incredible milestone would not have been possible without the extraordinary efforts of our team and the ongoing support of our guests.”

Etihad’s expansion is set to bring tens of thousands of new visitors directly to Abu Dhabi, boosting its position as a premier destination for leisure, business, and cultural tourism. The move aligns with the UAE capital’s efforts to attract international travellers and reinforces its reputation as a hub of connectivity, innovation, and hospitality.

“The launch of these ten destinations is supported by our impressive hub, Zayed International Airport, which boasts the ‘wow’ factor and ample space to accommodate our rapid growth, further enhancing the exceptional guest experience,” said Neves. “2025 marks a pivotal year for Etihad, with more than 90 destinations in over 50 countries, a fleet of more than 110 aircraft – including our amazing new A321LRs – welcoming over 20 million guests onboard. Most importantly, it will support us in bringing over a million visitors to Abu Dhabi to enjoy our home.”

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