Russian accounts in Indian banks have accumulated billions of rupees that "have nowhere to go," Russian Foreign Minister Sergei Lavrov told reporters on the sidelines of a Shanghai Cooperation Organization meeting in the Indian state of Goa. His words are quoted by Bloomberg.
Lavrov said that this fact is a "problem". He stressed that Russia needs this money, but it can only be transferred "through another currency, which is being discussed now."
Initially, the Kremlin welcomed trading in national currencies, since after the Russian invasion of Ukraine, many Russian banks fell under sanctions and were disconnected from the SWIFT system. However, it was not possible to switch completely to settlements in national currencies with countries-consumers of Russian exports.
In the case of India, this is hampered by a large imbalance in trade between India and Russia. Since the country began actively buying Russian oil in April 2022, Indian goods exports to Russia have fallen by 11.6% to $2.8 billion, while imports of Russian raw materials have almost quintupled to $41.56 billion.
The day before, on May 4, Reuters sources reported that negotiations between India and Russia on an oil trade in rupees did not lead to a result. Russia insisted on paying for its oil in yuan and was unwilling to accept Indian currency. Therefore, most transactions between countries are still made in dollars.
In April, it emerged that the State Bank of India and the Indian Bank of Baroda were telling local refiners that they would not be able to process payments for Russian oil purchased at a price exceeding $60.
In January 2023, it was reported that the Indian authorities were ready to support the price ceiling for Russian oil, which was introduced by a coalition of Western countries, if necessary.
In 2017, it became known that billions of Venezuelan bolivars are being imported into Russia, which Russian firms, including Rosneft, receive for working in Venezuela. The Bolívar is a non-convertible currency.