March 14, 2022
2 mins read

India mulls Rupee payments for trade with Russia: Report

Russian Finance Minister Anton Siluanov has denied reports that Moscow cannot fulfil its obligations under the public debt…reports Asian Lite News

India is planning to set up a mechanism to facilitate trade with Russia using local currencies, with a decision expected as early as next week, media reported.

People familiar with the matter told NDTV that the government was discussing how trade could 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.

The central bank as well as commercial lenders including State Bank of India and UCO Bank Ltd. are being consulted, they said.

POUND (IANS)

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, the NDTV reported.

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.

Under the proposed mechanism, ruble could be deposited into an Indian bank after converting it into rupee and vice versa. There are some concerns, however, on how to peg the currencies, and also on ways to balance the trade as India is a net importer of Russian goods, which include defense equipment, it was reported.

We have enough funds: Russia

Russian Finance Minister Anton Siluanov has denied reports that Moscow cannot fulfil its obligations under the public debt.

“Statements that Russia cannot fulfil its obligations under the public debt do not correspond to reality. We have the necessary amount of funds to service our obligations,” the Ministry’s press service quoted the Minister as saying.

Russia is also ready to make payments in rubles at the exchange rate of the Bank of Russia on the date of payment, he noted.

“Moreover, for issues of Eurobonds issued since 2018, such an opportunity was laid down directly in the issuance documents,” Siluanov recalled referring to payment in ruble.

Russian Finance Minister Anton Siluanov  (IANS)

The Ministry of Finance will additionally inform about the fulfilment of their obligations by agent banks under the terms of Eurobond issues.

Earlier in the day, Siluanov told local media that nearly half of the country’s roughly $640 billion of gold and foreign currency reserves have been frozen in the wake of Moscow’s ongoing war on Ukraine.

The Russian authorities will closely monitor inflation and the state of the country’s pensions, Siluanov noted.

“Of course, we have enough money to ensure the production of vital goods. The Central Bank will provide the necessary liquidity to the financial system,” he said.

Since Russia started the war on February 24, there has been an onslaught of Western economic sanctions, including asset freezes, in response.

ALSO READ-Zelenskyy urges NATO to impose no-fly zone over Ukraine

Previous Story

Curbs imposed in two Chinese cities amid Covid resurgence

Next Story

Afghanistan to close down Washington embassy

Latest from -Top News

Singapore’s Ruling Party Achieves Landslide Victory

Prime Minister Lawrence Wong, whose party won the election, thanked supporters.,..reports Asian Lite News Singapore’s ruling People’s Action Party (PAP) won 87 of the 97 seats in Parliament in Saturday’s general election,

Jaishankar, Lavrov Discuss Pahalgam Terror Attack

Both the Ministers discussed issues of Russian-Indian cooperation and the aggravation of India-Pakistan relations following the terrorist attack in Pahalgam. External Affairs Minister (EAM) S. Jaishankar spoke to the Russian Foreign Minister

Rajnath Singh to skip Russia visit

The decision comes amid rising tensions between India and Pakistan following the recent terror attack in Pahalgam, Jammu and Kashmir…reports Asian Lite News Defence Minister Rajnath Singh will not likely attend Russia’s

WAVES 2025: Jaishankar Advocates Cultural Pluralism

External Affairs Minister S. Jaishankar delivered a powerful address at the WAVES 2025 Global Media Dialogue, highlighting the significance of cultural pluralism in shaping global change. Speaking on the second day of

India Eyes Supply Chain Shift

India’s electronics manufacturing sector is undergoing a remarkable transformation, positioning the country as a major global hub for production and supply chain diversification. Riding on favourable government policies, geopolitical tailwinds, and a
Go toTop

Don't Miss

‘Private 5G networks crucial for India’

There would be no revenue loss to the government on

SC voices concerns over pendency of criminal appeals in High Courts

Counsel representing the Madhya Pradesh High Court submitted that suggestions