Reuters: India and Russia suspend rupee trade talks
India and Russia have suspended negotiations on bilateral trade in rupees. This is reported Reuters citing sources familiar with the matter.
As it became known to the agency, the countries decided to abandon the settlement mechanism in the Indian national currency, since it is unprofitable for Russia. “India did everything possible to make it function, but it did not help,” the source said. It is noted that this decision has become a serious problem for Indian oil and coal importers from Russia, who hope to use this mechanism to reduce the cost of currency conversion.
According to sources, Moscow prefers settlements in Chinese yuan or other currencies. However, most payments are made in dollars.
In early December, it became known that five to six Russian banks received permission to open accounts in Indian banks in rupees for trading. Zamir Kabulov, director of the second department of the Russian Foreign Ministry, said that Russia and India are fundamentally moving away from the dollar and the euro in mutual trade.
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