Russian Envoy Urges Enhanced Efforts in Rupee Payment Settlement with India

Denis Alipov, the Russian Ambassador to India, highlighted the need for increased efforts from banks and exporters to overcome these hurdles. He emphasized the necessity for resolving payment issues to bolster economic ties. Alipov also addressed delays in the S-400 defense deal due to sanctions affecting Russian banks' access to the Swift network. Despite these challenges, he expressed optimism for a potential surge in trade once payment mechanisms are refined. Additionally, he showcased an interest in bolstering collaboration in various sectors, including MSMEs, energy, defense, space, logistics, education, railways, and hospitality.

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In discussions concerning trade ties between Russia and India, Denis Alipov, the Russian Ambassador to India, underscored the persistent challenges in the Rupee payment settlement mechanism. He stressed the need for heightened efforts from both banks and exporters to surmount these obstacles.

Addressing the hindrances faced in trade transactions, Alipov emphasized the crucial role of streamlined payment methods in fortifying economic relations between the two nations. The envoy urged Indian banks and exporters to delve deeper and expend extra effort to explore improved conditions for payment settlements.

Regarding the S-400 defense deal, Alipov acknowledged delays attributed to sanctions restricting Russian banks' access to the Swift banking network. He assured that despite these setbacks, the supply is underway, albeit on a revised schedule.

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Despite these setbacks, the envoy remained optimistic, foreseeing a significant surge in bilateral trade once the hurdles in the payment mechanism are effectively addressed and rectified.

In a bid to expand collaboration, Alipov expressed keen interest in fostering ties in the MSME sector. He revealed plans for a substantial delegation to participate in West Bengal's BGBS, an investment summit slated to commence soon. This initiative signifies a broader intent to deepen engagement across various sectors encompassing energy, defense, space, logistics, education, railways, and hospitality.

The bilateral trade between India and Russia in FY'23 amounted to USD 49 billion, underscoring Russia's status as India's fourth-largest trade partner.