India, Russia discuss Rupee-Ruble exchange amid sanctions
The Central Bank of India is discussing a possible scheme of direct currency exchange with Moscow.
The UK Financial Times reported that India's central bank is in discussions with Russia regarding direct currency exchange amid anti-Russian sanctions.
According to Dr. A Sakthivel, president of the Federation of Indian Export Organizations (FIEO), the organization has made a request to the Indian government to establish an exchange scheme. "We have requested the government to have [the rupee-rouble] arrangement," adding that the government is "working on it. Very soon I think we'll get this."
Sakthivel divulged that while global sanctions are banning exports to Russia, India feels it is a good opportunity to enter the Russian market.
According to some news outlets, India may purchase around 15 million barrels of inexpensive crude oil from Russia in 2022. Hardeep Singh Puri, India's Petroleum and Natural Gas Minister, stated that New Delhi is discussing the pricing and logistics of exporting cheap oil to Russia after Moscow was struck with a US import restriction.
Last week, Russian Deputy Prime Minister Alexander Novak stated that Russia wished to encourage Indian investment in the oil and gas business following the United States' announcement that it would forsake Russian oil over Ukraine, leading prices to skyrocket.
Western nations placed tough sanctions on Russia for its decision to conduct a military operation in Ukraine on February 24.
Similarly, China has launched yuan-priced oil contracts in 2018 as part of its efforts to make its currency tradeable globally, but they haven't eroded the dollar's dominance of the oil market. Using dollars has become a risk for China, as illustrated by US sanctions imposed on Iran over its nuclear program and on Russia in reaction to the Ukraine operation.
The state-run Russian VTB Bank which has been sanctioned by Washington has released a decision to provide users with the option of opening an account in Yuan, the Chinese currency, with a maximum interest rate of 8%.