India has finalized an alternative payment system that will allow it to continue trade with Russia, which has been sanctioned by the West after the invasion of Ukraine, a local newspaper reported on Sunday.
The Government of India is in the process of finalizing a bank to set up an alternative payment system. This allows Russia to deposit rubles and India to deposit rubles, officials familiar with the matter. Said Hindustan Times.
Officials said the payment mechanism was in talks with representatives of the Reserve Bank of India, the State Bank of India, and the UCO Bank based in Kolkata.
India used the same mechanism to import Iran’s oil after the United States imposed sanctions on Iran in 2012 for its nuclear weapons program. At that time, UCO Bank appointed and fixed a “Vostro account” from an Iranian bank.
The government has also set up an inter-ministerial top panel led by Economic Secretary-General Ajay Seth to analyze the impact of Western sanctions on Russia on the Indian economy.
Officials who spoke on anonymous terms said India would prioritize the import of cooking oil and fertilizers, as a shortage of any of these commodities could lead to food inflation and affect the country’s agricultural sector. rice field.
Discussions with banks concluded that India is likely to negotiate a percentage of Russia’s oil share, given that Russia’s oil market is shrinking as a result of Western sanctions.
India called for the end of violence in Ukraine, but withheld the full condemnation of Russia, which has long-standing political and security ties.
Top Pentagon officials expressed their understanding of India’s decision to refrain from voting in a UN resolution condemning Russia’s invasion of Ukraine, and the United States said India’s “Complex History and Relations with Russia”, Times of the Times. He said he acknowledged India. report..
At a parliamentary hearing on March 10, India “diversified its arms purchases from Russia,” said Ely Ratner, assistant secretary of defense for Indo-Pacific security, “going in the right direction.” Said.
“It will take some time, but they are clearly committed to doing that, including increasing indigenous peoples in their own defense industry, including increasing indigenous peoples.” Ratner said. “That’s what we should support.”
US Rep. Ro Khanna pointed out that the United States would become a larger ally with India as it assisted India in the 1962 conflict with China.
“I think it’s clear that the United States is far more opposed to China’s invasion on the actual line of control than Russia and Putin. Don’t rely on Russia’s defenses and be willing to blame Putin for India. We need to put pressure on it. The invasion in Ukraine is just like condemning China’s invasion beyond the actual line of control, “Kanna said.
Russia’s exports to India were $ 6.9 billion in 2021, mainly mineral oil, fertilizers and coarse diamonds. Meanwhile, India exported $ 3.33 billion worth of goods to Russia in 2021, mainly exporting medicines, tea and coffee.
Reuters contributed to this report.