India and Russia have temporarily suspended work on a mechanism for payments in rupees. In this respect informs Reuters cites Indian officials and sources.
One of the agency’s interlocutors in the Indian government explained that Moscow does not want it to accumulate more than 40 billion rupees – it is not a fully convertible currency – which will likely happen due to an imbalance in trade in favor of the Russian Federation. At the same time, another source noted that Russia wanted to be paid in yuan.
According to another source of the agency, the Indian side is unwilling to seek a solution in establishing a mechanism for rupee trading as it does not work. So India did everything it could to find effective solutions to this problem, but nothing came of it.
Reuters added that the delay in setting up the new plant will affect Russian energy buyers in India looking to reduce their currency conversion costs. At the same time, most payments are now made in dollars.
Elvira Nabiullina, head of the Central Bank of Russia, at the end of April statedThat financial instruments in Indian rupees will not appear on the Russian market in the near future due to currency restrictions.