Russia, which is facing several international sanctions after the attack on Ukraine, has found a way to trade with India. It is reported that Russia has given India the option of payment in dollars or euros against crude oil. Apart from this, Russia has told India that it is ready to trade at the rupee-ruble exchange rate for all other goods and services. According to the information, officials of the Russian Central Bank and representatives of Esber Bank, together with their counterparts in India, have spoken to their counterparts in this regard last week. Apart from this, the bank officials of Russia have also spoken to the officials of the Ministry of Finance of India in this regard.
Significantly, after Russia’s attack on Ukraine on February 24, trade between India and Russia is going on fiercely. Irrespective of the global pressure, India is buying crude oil from Russia and in return Russia is also giving India a discount on oil. On the global stage, India clearly says that they cannot stop trade with Russia because India depends on Russia for military equipment. In such a situation, when China is increasing its military strength, then India’s dependence on Russian weapons has also increased.
The good thing about this deal is that Russia has approved the transaction between Rupee and Rupee for the transaction of other goods to India. If both the countries agree on this deal, then the price of rupee will increase in the international market, which will directly benefit the economy of India. Significantly, the trade deficit between India and Russia is 5 billion dollars. Of these, $3 billion in losses are from oil alone. India is trying to minimize the trade deficit of two billion dollars other than oil.