96% of Russia-India Trade Now Settled in Rupees and Roubles
· Business · Moneycontrol
About 96% of bilateral trade between Russia and India is now being settled in Indian rupees and Russian roubles, marking a decisive shift away from the US dollar for transactions between the two countries. The local-currency mechanism, operationalised through a special rupee vostro account system, allows Indian importers to pay Russian exporters in rupees and vice versa without routing payments through dollar-based correspondent banking. Indian refiners have emerged as the largest users of the arrangement, paying for discounted Russian crude oil directly in rupees since Western sanctions restricted conventional dollar clearing after 2022. Trade volumes between Moscow and New Delhi have expanded sharply, with bilateral commerce touching record highs even as the rupee-rouble settlement share climbed from negligible levels to its current near-totality. The arrangement has also reduced transaction costs and settlement times for Indian businesses dealing with Russian suppliers, particularly
Why it matters
Indian refiners, fertiliser importers, and exporters dealing with Russia gain faster, cheaper rupee-rouble settlements and insulation from dollar-banking disruptions, while the shift signals deepening de-dollarisation in India's energy trade with Moscow.
Read the original report — Moneycontrol
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