DELHI – Russia has decided to stop trading with India in currency of the South Asian country due low Indian exports to Moscow.
Russia Foreign Minister Sergei Lavrov told media on Friday that his country had accumulated billions of rupees in Indian banks, adding that the amount cannot be used due to very low Indian exports to Russia.
“This is a problem,” Lavrov told reporters in India’s western state of Goa on the sidelines of the Shanghai Cooperation Organization moot. “We need to use this money. But for this, these rupees must be transferred in another currency, and this is being discussed now,” Indian media reported.
Reports said India exports to Russia have decreased by 11.6% to only $2.8B in 11 months of FY22-23, while Indian imports from Russia increased by 5 folds, crossing $41.66 billion during the said time period.
The volume of frozen funds in Indian banks for Russian could be ballooned to billions of dollars if the trading between the two countries continues.
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