The head of the Federation of Indian Export Organizations (FIEO), A. Shaktivel has stated that India will soon launch trade in rupees with Russia, according to a Reuters report.
The Federation of Indian Export Organisations popularly as “FIEO” is the apex body of Indian export promotion organisations which was set up jointly by the Ministry of Commerce, Government of India and private trade and industry in the year 1965.
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Shaktivel stated that “The State Bank of India has come forward for facilitating trade in rupees with Russia and some other banks have also shown interest.” According to Shaktivel, the name of the corresponding Russian bank could be announced in the next 15 days.
He went on to add that India already has “a good rupee payment mechanism in Iran, so the same thing will happen [with Russia].”
India’s exports to Russia have slowed since the imposition of Western sanctions against Moscow following its late-February invasion of Ukraine.
In April-July, the first four months of this fiscal year, India’s exports to Russia fell by about a third, while imports leapt as refiners raced to buy discounted Russian oil, according to government data.
Indian companies are already swapping out dollars and euros for Asian currencies to settle trades to avoid Western sanctions on Russia.
Russian President Vladimir Putin and Indian Prime Minister Narendra Modi met in Uzbekistan on Friday on the sidelines of a summit of the Shanghai Cooperation Organisation.
The Shanghai Cooperation Organization (SCO) is a permanent intergovernmental international organization, the establishment of which was announced on June 15, 2001 in Shanghai by the Republic of Kazakhstan, the People’s Republic of China, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan, the Republic of Uzbekistan.
India and Pakistan became member States of the organization in 2017.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
