Russia’s trade with India is experiencing significant growth, with bilateral payments proceeding smoothly, according to Anatoly Popov, Deputy CEO of Sberbank, Russia’s largest lender. In an interview with Reuters, Popov highlighted that Sberbank handles payments for up to 70% of all Russian exports to India, with trade between the two nations nearly doubling to $65 billion in 2023. This surge is largely attributed to India’s increased imports of Russian oil following Western sanctions on Moscow due to the Ukraine conflict.
The sanctions have prevented Sberbank from conducting transactions in U.S. dollars and euros or using the SWIFT system for international transfers. However, Popov emphasized that the bank has not faced any operational issues in India. “Sberbank is a full participant in all Indian payment and interbank systems. There are no restrictions on its operations,” he stated, noting that transactions in roubles and rupees are processed efficiently, with 90% completed within hours.
India has not joined the Western sanctions against Russia, maintaining its longstanding friendly relations with Moscow, a fellow BRICS member. As Russian businesses increasingly turn to India as an alternative market, Sberbank has expanded its presence in the country, with offices in Delhi, Mumbai, and an IT hub in Bangalore. The bank’s Indian staff has grown by 150% this year, underscoring its commitment to the market.
Popov also mentioned that the issue of surplus rupees held by Russian companies, which had hindered trade, has been resolved. Indian exports to Russia have grown, helping to balance trade. Sberbank is further developing its financial services in India, including rupee-denominated loans and hedging instruments, to support Russian companies operating in the region.
Popov praised Indian regulators for enabling Sberbank to operate through rupee-denominated “vostro” accounts, facilitating seamless transactions without the need for third-party currencies. He also suggested that increased stock exchange trade in rupees could further enhance transparency in bilateral trade.
