Indian banks will start trading settlements with Russia in rupees from next week. This was reported on Monday by the Indian newspaper Mint.
According to her, from five to six Russian banks have received permission to open accounts in Indian currency (Vostro accounts) in Indian banks for trade settlements in rupees. To date, 10-11 such accounts have been opened, the publication clarifies.
“A number of issues have been resolved. Exporters and importers have started contacting banks to open accounts [in rupees]. Starting next week, a trade settlement with Russia is expected for some shipments of goods under the new payment system,” Ajay Sahay, Director General of the Federation of Indian Export Organizations, told the newspaper. In his opinion, settlements in rupees will solve the problem of India’s growing trade deficit in trade with Russia. “In trade with Russia, our imports are 10 times higher than exports. But there are very good chances to increase Indian exports to this country if Russia pays rupees for Indian goods,” Sahay is sure.
According to the Ministry of Commerce of India, the republic can transfer 16.38% of its total trade volume in rupees with Russia and neighboring countries, with the exception of Pakistan.
As Bloomberg previously reported, imports from Russia to India increased fivefold in the first five months of the 2022-2023 fiscal year (started in April), to $17.23 billion. From April to September, India’s exports to Russia amounted to $1.29 billion compared to $3.25 billion.
In November, Russia overtook traditional sellers – Iraq and Saudi Arabia – to become the main supplier of oil to India. Russian supplies reached 909,403 barrels of crude oil per day, which accounted for more than 20% of oil supplies to the South Asian republic.
Source: TASS
