India And Russia Discuss Ties, Trade In National Currencies

Russian Foreign Minister Sergey Lavrov stated in Goa on Friday that Russia has accumulated “billions” of Indian rupees through trade, but this is proving to be a problem.

Lavrov was asked to respond to reports in the media that India and Russia had suspended talks to settle bilateral trade in rupees while he was speaking to reporters on the sidelines of the “Council of Foreign Ministers” meeting of the Shanghai Cooperation Organization (SCO).

This is a problem because we need to use billions of rupees that we have accumulated in Indian bank accounts. However, for this, the rupees should be moved to another money. This is being examined now,” said the unfamiliar clergyman.

Indian importers, who have been importing a significant quantity of inexpensive Russian oil ever since the outbreak of the conflict in Ukraine, are feeling the impact of the suspension of the rupee-to-rouble trade system between India and Russia.

Reports demonstrate that shippers were expecting an extremely durable rupee-rouble installment system to assist with bringing down cash change costs.

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To avoid being subject to Western sanctions for Russia’s invasion of Ukraine, a rupee-to-rouble trading mechanism was established.

India is unable to pay for Russian oil in US dollars, the standard international payment method, as a result of the US sanctions imposed on Russia.