Russian commodity export companies faced difficulties in attracting funds from the sale of energy resources from India. This is due to the peculiarities of the local financial regulation, so withdrawing rupees from the country is an extremely difficult task. informs publication “Novye Izvestia” referring to industry analysts.
At the same time, after the 2022 results, India, along with China, became one of the most important energy importers for Russia. And in some months, New Delhi was even ahead of Beijing in terms of raw material consumption from the Russian Federation. The real problem, though, is that India prefers to buy Russian resources in exchange for the local national currency, the rupee, the article states.
“There is already a huge trade imbalance in Russian-Indian trade. “India settles accounts with exporters in its own national currency and it is impossible to withdraw rupees from the country,” said Igor Lipsits, Doctor of Economics.
Aleksey Gromov, Chief Energy Director of the Institute of Energy and Finance, also drew attention to the problem of withdrawing funds from Russian raw material exporters from India. At the same time, similar difficulties arise with the Chinese yuan.
“The peculiarities of financial regulation in India are such that it is very problematic for any foreign company to withdraw rupees from an account opened in an Indian bank. You can sell Russian oil for yuan, but in most cases it won’t be that easy to withdraw the yuan and turn it into cash in your company’s interests. Gromov concluded, “There are certain obligations regarding the use of the currency and its withdrawal from the financial system of these countries, including India.
March 9 Bloomberg reportedAs the number of Asian buyers increases, the price of oil from Russia increases. ESPO oil prices were about $6.5-7 lower than North Sea Brent oil, while Ural crude was about $10 below this benchmark. However, that’s still $2 more than it was in February 2023.