Russia and India suspend negotiations on bilateral trade in rupees – Kommersant
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India and Russia have suspended negotiations on bilateral trade in rupees, Reuters reported citing sources. According to the interlocutors of the agency, it was necessary to abandon the settlement mechanism in the Indian national currency because it was unprofitable for Russia – it generated a trade imbalance. For now, trade between the two countries continues in dollars.
“We don’t want to insist on rupee payments anymore, this mechanism just doesn’t work. India did everything possible to make it function, but it did not help, ”said the agency’s source. After months of negotiations, the ditching of the rupee settlement mechanism has become a serious problem for Indian importers of Russian oil and coal, who hoped to use it to reduce currency conversion costs, according to Reuters.
India and Russia began to explore the mechanism of settlements in rupees after the start of the Russian military operation in Ukraine and the subsequent Western sanctions. However, the interlocutor of the agency notes, it is inconvenient for Russia to use the Indian national currency. The Russian side wants to be paid in other currencies, including Chinese yuan.
The news is being added.
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