Since Russia’s invasion of Ukraine, Western countries have imposed a slew of crippling sanctions on Vladimir Putin, affecting nearly every aspect of the Russian economy. To avoid the most severe consequences of these sanctions, particularly those affecting energy, Russia has turned to the East, primarily India and China.

According to experts, India is on track to purchase 15 million barrels of oil from Russia by the end of the year.

According to sources, Russian state-backed oil giant Gazprom has also asked India’s largest gas transmitter GAIL to pay for gas imports in euros rather than dollars.

This comes as Russia seeks to reduce its reliance on US currency after Western powers froze Russian assets abroad in response to Ukraine’s invasion.

GAIL has previously settled trades in dollars with Gazprom Marketing & Trading Singapore, as the two companies are currently in a long-term gas import agreement to buy 2.5 million tonnes of liquefied natural gas each year.

Because GAIL trades with the Russian corporation’s Singapore arm, this deal between Gazprom and GAIL is unlikely to be affected by Western sanctions.

This move exemplifies Putin’s efforts to wean the country off the Petrodollar, a term for US dollars used in energy transactions.

Companies typically purchase oil in dollars because it is the most widely used currency in the world, making it the most easily traded.

Countries using dollars for trade boost US assets because these dollars are frequently reinvested back into US firms.

Last week, it was reported that Indian Prime Minister Narendra Modi and Russian President Vladimir Putin are strengthening their energy ties as New Delhi avoids Western sanctions on Moscow by importing oil at reduced prices.

Although price details were not immediately available, sources told Reuters that the barrels of Russian Urals crude were purchased at a $20-$25 per barrel discount, which equates to about £17 pounds.

At the moment, a barrel of crude oil brent costs $120.60 (£92).

According to Evgeny Ostapkevich, the head of the operational department of the Russian trade mission in India, Russia is only likely to increase the volume of oil it supplies to India.

India’s central bank is also in talks with Russia about a potential rupee-ruble trade arrangement that would allow New Delhi to continue exporting to Moscow despite Western sanctions that limit international payment mechanisms.