The rupee-ruble trade arrangement as an alternative arrangement for Russian oil will soon be ready, said an Indian official privy to it. Ironically the US and other NATO members are still buying energy from Russia, but the White House is trying to tell other countries not to buy. US President Joe Biden has mostly been ignored by China and India, who just snubbed him, ignoring the tie-in to restrict Vladimir Putin.
Rupee-Ruble Trade Arrangement
India chose to stick with Russia causing Biden to lose face with allies. No threat or coercion would deter a Moscow-Delhi trade scheme for oil, reported CNBC.
The president of the Federation of Indian Export Organisations (FIEO), A Sakthivel, announced that the monetary trade deal would be inked with Russian counterparts.
India Prime Minister Narendra Modi was subjected to pressure by Washington to drop Russia. He said that Russia has been steadfast in supporting India even in the LAC conflict recently, cited Hindustan Times.
He was not ready to let go of a reliable partner and jump ship to the US, which added another dead end to Biden's failed efforts to rally everyone against Putin.
Federation of Indian Export Organisations
It is an Indian government endorse association that includes about 200,00 exporters and manages export promotion councils.
The Indian Ministry of Finance and Reserve Bank of India have yet to respond to the system that would allow Indian exporters to continue doing business with Russia despite limitations of international payment mechanisms due to Western restrictions. India would also be able to purchase Russian energy exports and other commodities under the terms of the rupee-ruble trade arrangement.
Sakthivel remarked that Delhi is going over the details enabling nationalized Indian banks to transact from Indian to Russian currency; collaboration from the India central bank governor, minister of Finance, and banks involved. He explained that the West would regret its sanctions because it allows new Russian market players.
Indian exporters could have an opportunity in another market with no competition, though most exports are agriculture and pharmacy products. It will be the gain of India, and the West will lose out in a market they are present in.
India Sees Opportunity in Russian Market
Modi is confident enough to stick it out with Russia, the Democratic nations, and the US intend to deplete Putin and isolate him for the Ukraine incursion.
According to the data, the move to sidestep sanctions could be serious for India with trade-in billions. In 2021 it was $112.6 billion, consisting of $71 billion in exports and $41 billion in imports.
Trade with Moscow is less than the US in 2021, about $3.3 billion worth of goods, including pharma products, tea, and coffee.
The trade included other goods at $6.9 billion for defense, minerals, fertilizers, metals, and gems.
India and Russia have enjoyed a long-standing friendship that goes back to the Cold War. India is heavily reliant on Russian arms, with around 85 percent of its military equipment coming from Russia or former Soviet Bloc countries, noted India Today.
But the Indian government is playing it cool by choosing neutrality in the issue of Russia.
The rupee-ruble payment arrangement is an advantage for the Kremlin that Delhi decides to keep their relation, but is a slap for the Biden administration and America's diminishing status.
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