Bank of Russia, RBI To Ready Framework For Trade, Banking
Following Russia’s invasion of Ukraine and an eventual third-world-war-like situation it created, Russia has been receiving a strong crackdown on its trading and other financial activities. India has been following the principle of “non-Alignment” from the time of the cold war. So now as global sanctions are coming down hard on Russia’s capital Moscow, India’s central bank- The Reserve Bank of India and Russia’s central bank- Bank of Russia are soon going to meet to discuss the same.
The two countries will decide upon a framework of trading and banking activities in order to continue their financial bilateral relations. A special payments system is also likely to be discussed to aid the energy supply that India avails from Russia. The meeting has a lot of strategic and political importance. Russian officials that cater to the finance sector of Russia are expected to visit India anytime this week reportedly. The talks are most likely to be captained by Russia’s central bank- Bank of Russia’s senior officer, either a deputy governor or a general manager. As the Indian government reportedly has a positive approach towards the rupee-rouble special payments system, this meeting will have that in its priority.
India’s external affairs ministry is also working on a way to continue and enhance financial activities with Russia, hopefully in a way that allows it to circumvent the financial sanctions on Russia levied by the west.
The west wants to dominate the global energy supply and Russia wants to have its fair share too. Citing the cause of violence and inhumanity, many western countries like the US, UK and Europe have taken steps to exclude Russia from their financial activities. It was in the later half of March 2022 that RBI also spoke to big players of the Russian finance sector, concerning a special payments mode to facilitate the trading activities between India and Russia.
Also Read: Can You Pay Taxes With A Personal Loan?