Russia-India payments up 5 times in 2023: Sberbank

By Al Mayadeen English
Source: Agencies
28 Sep 2023 13:44

The Deputy Chairman of Sberbank's executive board reveals a fivefold increase in the monetary value of settlements conducted in national currencies between Russia and India compared to the preceding year.

A man cycles past a Ljubljana, Slovenian branch of the Russian state-owned bank, Sberbank, on February 28, 2022. (AFP)

Anatoly Popov, Deputy Chairman of Sberbank's executive board said that settlements conducted in national currencies between Russia and India have surged by five times in terms of monetary value compared to the previous year. Additionally, the average transaction for the first half of this year has risen by 83%.

Popov, speaking at the SberVED 2023: India conference, highlighted Sberbank's crucial role as the primary banking partner for corporate clients engaged in transactions using national currencies with India. He pointed out that the volumes of settlements with India have increased by a significant fivefold in monetary value compared to the corresponding period last year.

During the initial half of 2023, the quantity of foreign trade operations, conducted with India in national currencies through Russia's largest bank, has nearly quadrupled. Simultaneously, the average transaction amount has surged by 83%, according to his statements.

The most sought-after imported goods include pharmaceuticals, food products, machinery and equipment, and chemical items.

The big picture

The draconian sanctions by the West upon Russia ever since the beginning of the war in Ukraine last year seem to have backfired, strengthening Russian ties with other nations like Iran, India, China, and Brazil.

Back in June, Russian Deputy Prime Minister Viktoria Abramchenko confirmed that Russia has entered more than 750 contracts on grain, sugar, and oil exports in national currencies this year.

Trade in rupees was also promoted with Russia as a means of securing a global status for India's national currency.

It is worth noting that Russia has recently conducted trade in rupees with India. Mauritius, Iran, and Sri Lanka have also been using the rupee in their trade transactions.

Trends of de-dollarization have been accelerating ever since the West waged a strategic provocation that compromised Russia's national security, forcing it to launch a special military operation in Ukraine.

In a bid to overturn sanctions against Russia, countries have started to opt for alternative means of conducting transactions. This facilitated the break of US financial hegemony over international trade.