Agreement Between India and Russia, Ready in A Week

On Wednesday, the head of an Indian exporters’ organization said that India would unveil a payment plan to allow commerce with Russia to continue. According to A Sakthivel, head of the Federation of Indian Export Organizations, the so-called rupee-ruble trading system might be implemented next week (FIEO).

FIEO oversees India’s export promotion councils; a government-backed organization that represents over 200,000 exporters. The Indian finance ministry and the Reserve Bank of India have yet to comment on the system; this would allow Indian exporters to continue doing business with Russia even if international payment mechanisms are not available due to Western sanctions. India will also be able to purchase Russian energy exports and other items under the agreement terms.

Indian Bank to Entering Trade with Russia

Sakthivel stated that the Indian government is working on a plan to enable four to five nationalized Indian banks to participate in the trade. The central bank governor, the finance minister, and banks have met to discuss the idea. Sakthivel went on to say that the international sanctions against Russia provide Indian exporters a chance to penetrate the Russian market. The entire West has banned Russia; hence, there will be many chances for Indian companies to enter the country. On the other hand, continuing commerce with Russia risks enraging Western countries, particularly the United States; it has put sanctions on Moscow as a result of its invasion of Ukraine.

India’s largest export market is the United States. According to official Indian figures, commerce between India and the United States was $112.6 billion in 2021; $71 billion in exports, and $41 billion in imports. Russia’s estimates are much lower; India shipping $3.3 billion worth of commodities to Russia in 2021, primarily pharmaceuticals, tea, and coffee. Moreover, defense products, mineral resources, fertilizers, metals, and precious stones were among the $6.9 billion in imports.

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