Russian Banks Offer Rupee-Rouble Conversion to Release Trapped Funds for India-Russia Trade

Russian banks Sberbank and VTB say they can now convert Indian rupees to roubles for exporters, helping release funds trapped due to sanctions.
Since Russia's invasion of Ukraine, Western sanctions have sought to cut off Russia from dollar transactions. India has benefited by buying cheap Russian oil.
But the rupee is not fully convertible, so Russia wants to avoid Western currencies. The banks aim to facilitate rouble payments.
India-Russia trade grew 2.6 times in 2022 to $35.3 billion, as Russian exports surged, especially oil and fertilizers.
But tight supplies have ended Russian discounts on fertilizer exports to India. India denies reports that trapped rupee payments involve oil.

reuters.com

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