Gazprombank increases its connections with Indian banks, for payments in Rubles and Rupees
Trade between India and Russia has seen a significant boost since the West imposed sanctions on Russia over its invasion of Ukraine last year. This has led to a shift in the flow of oil and other commodities, making Russia the largest supplier of crude oil to India this year.
The growing relationship has been accelerated by Russia's Gazprombank, which has played a pivotal role in expanding its ties with Indian banks to facilitate trade between the two countries in national currencies. Gazprombank is Russia's third largest lender and an important channel for Russian energy trade.
Elena Borisenko, deputy chairwoman of the board of Gazprombank, told Reuters that she had " worked hard to establish our level of partnership with Indian banks" . Describing the hard work put into the venture, he noted that "our representatives here have worked hard", adding that they now have "infrastructure and payments from the banks… it's much better than it was three months ago" .
Growing trade relations between India and Russia are leading to a growing tilt of the trade balance in Russia's favor. A potential solution to turn the tide would be for Russian companies to invest in infrastructure projects in India.
Borisenko noted that he " hopes that trade will improve and that… payments between Russia and India will increasingly be in national currency ."
This partnership was also aided by India's introduction last year of a framework to facilitate foreign trade in rupees, allowing many foreign banks to open ' Vostro Accounts ' with Indian banks. “Your Account” is a special account for international payments in Rupees, established by the Central Bank of India (RBI) to enhance the Rupee's status as an international settlement currency. Gazprombank and other Russian banks have opened such accounts, thus being able to stably settle imports and exports with India without any problems and circumventing Western sanctions.
This news highlights the growing importance of national currencies in international trade . The ability to trade in national currencies is essential for trade between countries while avoiding dollar bottlenecks. This is an increasingly widespread trend that aims to circumvent US blocks and controls and to provide the various national currencies with greater status. This shift could dramatically alter the global financial system in the years to come, degrading the status of US currency at least in the payment for goods.
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The article Gazprombank increases its connections with Indian banks, for payments in Rubles and Rupees comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/gazprombank-incrementa-i-propri-collegamenti-con-le-banche-indiane-per-pagamenti-in-rubli-e-rupie/ on Mon, 17 Apr 2023 16:59:18 +0000.