Russia-India Trade Soars
ECONOMY & POLICY

Russia-India Trade Soars

Russia?s trade with India is flourishing, with bilateral payments progressing smoothly, according to Anatoly Popov, deputy CEO of Sberbank. The bank, which manages up to 70% of Russian exports to India, reported that trade nearly doubled to $65 billion in 2023. India has become a major importer of Russian oil following Western sanctions over the Ukraine conflict.

Popov highlighted a significant increase in Russian interest in the Indian market since 2022, noting that India serves as a key alternative market. Despite Western sanctions that restrict Sberbank?s access to U.S. dollars and euros, and its exclusion from the SWIFT system, transactions between Russia and India remain trouble-free. The bank's Indian branches in Delhi, Mumbai, and an IT center in Bangalore have seen a 150% increase in staff this year, reflecting the growing business.

Sberbank?s operations in India are not restricted, and transactions in rupees and roubles are processed efficiently, with 90% completed within hours. This is a sharp contrast to the delays experienced with other trading partners, such as China. Popov mentioned that the issue of a rupee surplus, which had impacted trade in 2023, has been resolved. However, he stressed the need for India to significantly increase its exports to Russia to balance trade further.

Popov praised India?s self-sufficiency and capacity to meet Russian import needs. Sberbank is also expanding its range of financial products, including rupee-denominated loans and hedging instruments. He expressed gratitude to Indian regulators for facilitating operations through rupee-denominated "vostro" accounts, which streamline transactions.

Overall, Popov emphasized that the current mechanism for converting roubles and rupees is functioning effectively and supports increased transparency in trade.

Russia?s trade with India is flourishing, with bilateral payments progressing smoothly, according to Anatoly Popov, deputy CEO of Sberbank. The bank, which manages up to 70% of Russian exports to India, reported that trade nearly doubled to $65 billion in 2023. India has become a major importer of Russian oil following Western sanctions over the Ukraine conflict. Popov highlighted a significant increase in Russian interest in the Indian market since 2022, noting that India serves as a key alternative market. Despite Western sanctions that restrict Sberbank?s access to U.S. dollars and euros, and its exclusion from the SWIFT system, transactions between Russia and India remain trouble-free. The bank's Indian branches in Delhi, Mumbai, and an IT center in Bangalore have seen a 150% increase in staff this year, reflecting the growing business. Sberbank?s operations in India are not restricted, and transactions in rupees and roubles are processed efficiently, with 90% completed within hours. This is a sharp contrast to the delays experienced with other trading partners, such as China. Popov mentioned that the issue of a rupee surplus, which had impacted trade in 2023, has been resolved. However, he stressed the need for India to significantly increase its exports to Russia to balance trade further. Popov praised India?s self-sufficiency and capacity to meet Russian import needs. Sberbank is also expanding its range of financial products, including rupee-denominated loans and hedging instruments. He expressed gratitude to Indian regulators for facilitating operations through rupee-denominated vostro accounts, which streamline transactions. Overall, Popov emphasized that the current mechanism for converting roubles and rupees is functioning effectively and supports increased transparency in trade.

Next Story
Infrastructure Transport

Dineshchandra R Agrawal Infracon to Build Guwahati Ring Road on BOT Toll Model

Ahmedabad-based Dineshchandra R Agrawal Infracon (DRA Infracon) has secured the 121 km Guwahati Ring Road project in Assam under the build, operate, and transfer (BOT) toll model. The company emerged as the lowest bidder for the Rs 49 billion project, committing to construct the highway without any grant from the National Highways Authority of India (NHAI).This marks NHAI’s first fully private-funded highway project in nearly three years. The Rs 52.79 billion Guwahati Ring Road project includes a three-km bridge on the Brahmaputra, with the company recovering its investment through toll coll..

Next Story
Real Estate

Aditya Birla Real Estate Sells Pulp & Paper Unit to ITC for Rs 34.98 Bn

Aditya Birla Real Estate Limited (ABREL) has announced the sale of its Pulp and Paper plant in Lalkuan, Uttarakhand, to ITC Limited for Rs 34.98 Bn, marking a strategic move to sharpen its focus on core real estate operations. The transaction, structured as a lump sum payment, remains subject to legal and regulatory approvals, including clearance from the Competition Commission of India (CCI) and shareholder consent. For this deal, JM Financial Limited acted as financial advisor, while AZ & Partners provided legal counsel to ABREL. With this divestment, ABREL reaffirms its commitment to rea..

Next Story
Infrastructure Transport

Hyderabad to Get 24 New Link Roads in Rs 4.87 Bn Project

The Hyderabad Road Development Corporation Limited (HRDCL) has commenced work on the first phase of its ambitious link road construction project across the city. With an estimated budget of Rs 4.87 billion, this phase includes 24 key link roads aimed at decongesting traffic and improving connectivity. Among the planned projects, HRDCL is constructing a crucial link road from Raj Bhavan Road to the R&B Guest House near Begumpet Railway Station, as well as another connecting Begumpet Railway Station, Prakashnagar, and the Brahmanwadi railway track. Residents in high-density areas like Prakashn..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?