India Considering Rupee Payments For Trade With Russia: Report
NDTV
India wants a floating exchange rate, instead of a fixed one used by the two nations three decades ago, given the ruble has crashed in recent weeks.
India is working out a mechanism to facilitate trade with Russia using local currencies, with a decision expected as early as next week, according to people familiar with the matter.
The government is discussing how trade can be settled in rubles and rupees as Indian exporters are awaiting payments of about $500 million that have been stuck after the sanctions on Russian banks, said the people, who asked not to be identified before a final decision is made. The central bank as well as commercial lenders including State Bank of India and UCO Bank Ltd. are being consulted, they said.
Spokespersons for the government and the Reserve Bank of India were not immediately able to comment, while representatives of SBI and UCO didn't immediately respond.
Latest data show India's bilateral trade with Russia stood at $10.8 billion, accounting for less than 1.5% of the South Asian nation's total. International sanctions and financial restrictions on Russia after its invasion of Ukraine are disrupting supply chains and driving up commodities prices, which add to the inflation problems of developing economies such as India.
