Russia-India trade nearly doubled to $65 billion in 2023 amid western sanctions, says Sberbank

Sberbank's deputy CEO Anatoly Popov said that Russia's trade with India is booming, with smooth bilateral payments. Trade nearly doubled to $65 billion in 2023.

Elena Fabrichnaya and Gleb Bryanski, Reuters
Updated3 Sep 2024, 06:42 AM IST
Skyscrapers of Moscow-City International Business District and headquarters of Russia’s biggest bank Sberbank are seen during sunset time in Russia.
Skyscrapers of Moscow-City International Business District and headquarters of Russia’s biggest bank Sberbank are seen during sunset time in Russia.(Reuters / Maxim Shemetov)

Russia's trade with India is booming and bilateral payments are proceeding smoothly without the glitches that have been hampering trade with other countries, Anatoly Popov, deputy CEO of Russia's largest lender, Sberbank, told Reuters.

Sberbank handles payments for up to 70% of all Russian exports to India. Russia's trade with India nearly doubled to $65 billion in 2023, with the country becoming a major importer of Russian oil after Western sanctions imposed in 2022 over a conflict in Ukraine.

Also Read | Paris Paralympics 2024: Indian para shuttler Nithya Sre Sivan earns bronze

"In 2022, there was a significant increase in the interest of Russian businesses in the Indian market because this market serves as an alternative," Popov told Reuters in an interview ahead of the Eastern Economic Forum, an economic conference targeting Russia's Asian partners.

Sberbank's branch in India has offices in Delhi and Mumbai, as well as an IT centre in Bangalore. The number of staff in its Indian offices increased by 150% this year, having said in April they wanted to hire 300 IT personnel for the hub in Bangalore.

Also Read | Andhra Pradesh rain: CM urges Centre to declare floods as ‘national calamity’

Western Sanctions No Bar

Sberbank is under Western sanctions and therefore cannot make transactions in U.S. dollars and euros or use the SWIFT system for international transfers. However, Popov said the bank has not experienced any problems in India.

"Sberbank is a full participant in all Indian payment and interbank systems. There are no restrictions on its operations," Popov said. India has not joined any anti-Russian sanctions and maintains friendly relations with Russia, a fellow member of the BRICS group of emerging economies.

Sberbank said transactions in roubles and rupees are proceeding smoothly, with 90% of them taking only a few hours to complete. This is in stark contrast to other trading partners such as China.

Also Read | Shares to buy or sell: Chandan Taparia recommends three stocks to buy today

Popov stressed that growing Indian exports to Russia have helped solve the problem of the rupee surplus held by Russian companies, which hampered bilateral trade in 2023, as rupees were used to pay for imports from India.

"The problem has been solved, there is no rupee surplus any longer," Popov said, emphasising that to achieve balanced trade, India still needs to increase its exports to Russia 10-fold. An Indian source told Reuters on Aug. 14 that the rupees surplus has dropped to a "few million dollars".

Also Read | India will take a call if Europe imposes carbon tax, says environment minister

‘India Has Almost Everything’

He said that India, the world's fifth largest economy, had almost everything Russian importers were looking for.

"India is a self-sufficient, vast economy capable of meeting its own needs. Therefore, any goods that Russia previously imported can be purchased in India," Popov said.

Sberbank is also developing its offering of hedging instruments, which already includes forwards and options, as well as other products such as rupee-denominated loans for Russian companies at rates significantly lower than in Russia.

Also Read | Buy or sell: Vaishali Parekh recommends three stocks to buy today — September 3

He thanked Indian regulators for the opportunity to operate through rupee-denominated "vostro" accounts, which domestic banks can hold on behalf of foreign banks in India, facilitating their operations.

Popov said that the current mechanism of converting roubles and rupees was functioning well and did not require any third-party currencies for settlement. However, he emphasized that stock exchange trade in rupees would increase transparency.

Catch all the Business News , Economy news , Breaking News Events andLatest News Updates on Live Mint. Download TheMint News App to get Daily Market Updates.

MoreLess
First Published:3 Sep 2024, 06:42 AM IST
Business NewsEconomyRussia-India trade nearly doubled to $65 billion in 2023 amid western sanctions, says Sberbank

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    159.55
    03:57 PM | 8 OCT 2024
    -4.75 (-2.89%)

    Bharat Electronics share price

    280.20
    03:58 PM | 8 OCT 2024
    12.85 (4.81%)

    Tata Motors share price

    919.85
    03:58 PM | 8 OCT 2024
    -8.25 (-0.89%)

    Zee Entertainment Enterprises share price

    126.80
    03:59 PM | 8 OCT 2024
    0.75 (0.6%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Trent share price

    8,047.80
    03:41 PM | 8 OCT 2024
    598.35 (8.03%)

    Dixon Technologies (India) share price

    14,557.00
    03:29 PM | 8 OCT 2024
    1061.15 (7.86%)

    IPCA Laboratories share price

    1,536.90
    03:58 PM | 8 OCT 2024
    50.6 (3.4%)

    Coforge share price

    7,323.60
    03:44 PM | 8 OCT 2024
    115.45 (1.6%)
    More from 52 Week High

    NMDC share price

    219.10
    03:42 PM | 8 OCT 2024
    -9.7 (-4.24%)

    Vijaya Diagnostic Centre share price

    948.70
    03:28 PM | 8 OCT 2024
    -33.25 (-3.39%)

    SBI Life Insurance Company share price

    1,732.15
    03:29 PM | 8 OCT 2024
    -54.8 (-3.07%)

    Tata Steel share price

    159.55
    03:57 PM | 8 OCT 2024
    -4.75 (-2.89%)
    More from Top Losers

    Varun Beverages share price

    589.90
    03:50 PM | 8 OCT 2024
    48.1 (8.88%)

    Housing & Urban Development Corporation share price

    228.95
    03:59 PM | 8 OCT 2024
    18.65 (8.87%)

    Doms Industries share price

    2,683.40
    03:29 PM | 8 OCT 2024
    214.9 (8.71%)

    Garden Reach Shipbuilders & Engineers share price

    1,662.90
    03:49 PM | 8 OCT 2024
    126.35 (8.22%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      77,455.00-220.00
      Chennai
      77,461.00-220.00
      Delhi
      77,613.00-220.00
      Kolkata
      77,465.00-220.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.75/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00

      Popular in Economy

        HomeMarketsPremiumInstant LoanMint Shorts