Indian refiners, including Reliance Industries Ltd, Bharat Petroleum Corp Ltd and Nayara Energy Ltd, used the United Arab Emirates dirham to pay for the shipping of some Russian crude in response to Western sanctions.

According to people with direct knowledge, buyers have shifted some transactions to currency. Payments are made differently for different shipments, depending on the needs of a particular trader, said the people familiar with the matter.

The EU’s recent ban on imports of refined petroleum products from Russia has made India an increasingly important export customer. Since June, Russia has been India’s top crude supplier as cargoes previously bound for Europe have been diverted to Asia, often at prices well below the $60 per barrel cap.

The UAE dirham offers Indian buyers and Russian sellers a relatively predictable currency pegged to the dollar without the dollar’s potential sanctions complications. Even in transactions that do not directly violate US and EU restrictions, some intermediary banks often take extra steps to avoid any risk to other overseas banking relationships.

India is the UAE’s second-largest trading partner, and officials are working on a mechanism to facilitate trade in dirhams and rupees.

Most oil transactions are still traded in US dollars. India’s oil minister said he was unaware of the dirham’s use in oil purchases.

Still, moving away from the dollar could irritate some officials in Washington. Last week, Brian Nelson, the US Treasury Department’s top sanctions official, travelled to Abu Dhabi to express concerns about the UAE’s close financial ties to Russia.