Booming Russia-India Trade Thrives Amid Sanctions

Despite Western sanctions, Russia's trade with India surged to $65 billion in 2023. Anatoly Popov, deputy CEO of Sberbank, confirmed that bilateral payments are functioning smoothly. With a stronger presence in India, Sberbank is navigating restrictions while expanding services and solving currency surplus issues through increased Indian exports.

Despite Western sanctions, Russia's trade with India has surged, reaching $65 billion in 2023. Anatoly Popov, deputy CEO of Sberbank, confirmed that bilateral payments are running without glitches, a stark contrast to Russia's trading experiences with other nations.

In an interview before the Eastern Economic Forum, Popov highlighted the growing interest of Russian businesses in the Indian market, citing it as an alternative amidst Western restrictions. Sberbank, which processes payments for up to 70% of Russian exports to India, has even started opening accounts in rupees for Russian clients, positioning the rupee as a potential savings currency.

Popov noted the bank's seamless integration into Indian payment systems and the significant increase in Indian exports to Russia, which have alleviated the issue of surplus rupees. With operations smoothened by rupee-denominated 'vostro' accounts, Sberbank continues to foster robust economic ties between the two BRICS nations.

(With inputs from agencies.)