India would discuss the possibility of re-enacting the agreement it has with Moscow for rupee-based international trade settlement with Belarus, a staunch Russian ally. This month, a team of representatives from Belarusian financial institutions is anticipated to meet with Indian bankers to discuss the prospect.
Indian exporters anticipate that this week would see the settlement of rupee-based payments for shipments to Russia. This transaction will be the first of its kind since the Reserve Bank of India started allowing trade settlement in rupees (RBI).
India’s exports to Russia are falling as a result of exporters’ apprehension over the Western sanctions and the absence of a reliable payment system. On the other hand, the country under sanctions has quickly overtaken other suppliers as India’s leading oil supplier. In contrast to the $3.25 billion in exports during the previous fiscal year, India’s exports to Russia were $1.29 billion between April and September. However, imports from Russia have grown five times to $17.23 billion in the first five months of the current fiscal year.
Many concerns have been resolved, according to Ajay Sahai, Director General of Federation of Indian Export Organizations (FIEO), and exporters and importers have begun approaching banks to register accounts for the rupee settlement system.
