US sanctions have India cornered. BRICS charts an escape route

Source: The Economic Times | Original Published At: 2026-10-21 17:57:04 UTC

Key Points

• The article argues that US sanctions and dollar clearing give Washington broad reach over foreign banks and companies, including Indian and Chinese refiners.
• India's oil purchases from Iran and Russia have been affected by secondary sanctions, tariff threats, temporary waivers and proposed US legislation.
• The Delhi BRICS summit did not agree on a single payment channel, but the New Delhi BRICS Declaration encourages study of cross-border interoperability and local-currency settlement.
• The commentary suggests BRICS could designate China's Cross-Border Interbank Payment System and the renminbi as a bloc-wide alternative settlement channel to reduce dollar dependence.
• It cites a proof of concept: Iranian crude cargoes bought by India were paid for in renminbi through ICICI Bank's Shanghai branch.
• India's concern is that CIPS could reinforce a China-led regional order, but the article says parallel systems could preserve India's transactional autonomy.
• The piece frames BRICS coordination as a potential route to strategic autonomy amid US sanctions and shifting global economic power.