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Russia and India to abandon dollar and euro in trade – Russian Foreign Ministry – RT Business News

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The two countries have launched a mutual settlement mechanism in national currencies

Moscow and New Delhi have agreed to move away from the dollar and euro in mutual trade, Zamir Kabulov, a senior Russian foreign ministry official, told RIA Novosti on Wednesday.

Although both countries have decided to switch to national currencies, a full-fledged transition will not be possible until the remaining trade imbalance issues are resolved, Kabulov explained.

“India still buys from us five times more than it sells. Specialists are working on this, looking for a reasonable compromise,” said the diplomat.

Moscow and New Delhi have already successfully established a mutual settlement mechanism in rubles and rupees. The Indian government allowed the use of the national currency in international trade agreements last month, in a bid to promote exports and reduce the rupee’s reliance on the dollar. The move is also seen as an incentive to boost trade with Moscow.

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India’s exports to Russia fell by about a third in April-July due to sweeping Western sanctions imposed on Moscow. However, according to the Federation of Indian Export Organizations (FIEO), rupee settlements could help reduce the trade deficit with Russia.

Earlier this month, media reported that several Russian banks had received permission to open rupee accounts in Indian banks for business purposes.

For more stories on economics and finance, visit RT’s business section

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