Indian banks refuse to service trade with Russia, following banks from Turkey and China
Indian banks are afraid to service settlements with Russian companies due to the threat of secondary US sanctions.
This was stated by Russian Ambassador to India Denis Alipov, Bloomberg reports.
According to him, Indian banks that have contacts with the United States are "concerned about secondary sanctions."
The Russian ambassador expressed hope that this problem could be resolved at the BRICS level, which includes Russia and India.
"It is necessary for Russia, China, India, South Africa... to have an equal say on global economic issues," Alipov said.
The Russian ambassador's statement comes as the two governments are preparing for a ministerial meeting to be held in November, Bloomberg notes. During the meeting, the two sides plan to discuss bilateral ties and measures to increase trade.
"We hope that understanding among the banking community in India will grow," Alipov added.
Bilateral trade between India and Russia peaked in the fiscal year ending March 2024, reaching $65.7 billion. However, it is characterized by a significant imbalance: India imported more than $60 billion worth of Russian goods, mainly due to discounted oil purchases. At the same time, Indian exports to Russia amounted to only $4.26 billion. This makes it difficult for Russian exporters to withdraw funds from India.
To solve this problem, the Russian authorities reportedly suggested that India use its replacement for SWIFT - the Financial Messaging System. The Indian authorities have not officially commented on this proposal.
In addition, to solve the problems with payments, Russian dictator Putin hoped to agree on the creation of an alternative to SWIFT at the BRICS summit held in Kazan.
However, the Kremlin failed to interest the BRICS leaders. In the final declaration of the summit, they agreed only to "discuss" and "study" the Russian proposal, and following bilateral talks, neither Chinese President Xi Jinping nor Turkish President Recep Erdogan announced a decision that would unblock bank payments.
