Russia’s Sberbank shrugs off curbs impact on India trade: report

Moscow’s trade with Delhi is on track while bilateral payments are smooth despite Western sanctions on Russia, Reuters reported, citing a top executive at Russian lender Sberbank.

Russia’s largest lender handles payments for about three-fourths of all exports to India.

India, the world’s third largest oil consumer, bought $2.8 billion worth of crude from Russia in the month of July, second only to China that remained the largest importer of Russian oil, according to the Centre for Research on Energy and Clean Air.

China bought 47% of Russia’s crude exports, followed by India at 37%, the EU at 7%, and Turkey at 6%, the report said.

Russia’s trade with India had nearly doubled year-on-year to $65 billion in 2023, with Delhi becoming a key importer of Russian crude after the West imposed curbs on Moscow over the conflict in Ukraine, beginning February 2022.

The Russian lender cannot transact in US dollars and euros or use the SWIFT system for global transfers, but has faced no problems in India, Reuters reported, citing Sberbank deputy chief executive officer Anatoly Popov ahead of the Eastern Economic Forum, an economic summit targeting Russia’s Asian partners.

Delhi has refrained from participating in any sanctions against Moscow, maintaining amicable relations with Russia, which is also a member of the BRICS group of emerging economies.

In India, Sberbank has offices in Delhi and Mumbai, as well as an IT center in Bengaluru.

Sberbank’s Popov said transactions involving roubles and rupees are being processed efficiently, with 90% of them completed within just a few hours. This efficiency contrasts sharply with the experiences of other trading partners, including China.

The increase in Indian exports to Russia has also addressed the issue of surplus rupees among Russian companies, which had disrupted bilateral trade in 2023. These rupees are now being utilized for purchasing imports from India, Popov told Reuters.