Russia and India Streamline Payments, Settling 96% of Trade in Local Currencies
Strengthening Bilateral Trade and Payment Mechanisms
Record Growth in Russia-India Trade
MOSCOW, Sept 2 (Reuters) - Russia and India, the second-largest importer of Russian oil, have built a functioning payments infrastructure using roubles and rupees, which now account for 96% of bilateral trade, a senior Russian banker said on Wednesday.
Russia's trade with India reached a record $70 billion in 2024, tripling since the start of the conflict in Ukraine in 2022, as India stepped up imports of Russian oil discounted due to Western sanctions. Bilateral trade fell in 2025 when those sanctions were tightened but rebounded in the first half of 2026.
Efficient Payment Infrastructure
Reliability of Settlement Mechanisms
"There are no problems with settlements between Russia and India. I am ready to say that this is one of the most reliable and best-established mechanisms for Russia's payments with other countries," said Ivan Nosov, head of Sberbank in India.
Challenges in Currency Conversion and Trade Imbalances
Russian businesses had previously complained about an "overhang" of rupees, an only partially convertible currency, in bilateral transactions, as well as trade imbalances, with Indian exports to Russia lagging behind surging imports of Russian oil.
Banking Collaboration and Transaction Efficiency
Involvement of Russian and Indian Banks
According to official data, 22 Russian banks, including Sberbank, Russia's largest lender, which was tasked with developing the payments infrastructure, and 17 Indian banks are currently servicing bilateral trade.
Transaction Speed and Efficiency
Rapid Processing Times
Nosov said that 90% of all transactions between Russia and India are processed within 10 minutes, while more than 50% are processed in less than one minute.
Political Endorsement of Economic Ties
Indian Prime Minister Narendra Modi hailed growing economic ties with Russia when he met President Vladimir Putin on Monday.
(Reporting by Elena Fabrichnaya; Writing by Gleb Bryanski; editing by Philippa Fletcher)
