“This is a problem”: Moscow was trapped in the Indian oil trade

The pace of de-dollarization in Russia and Asia is exceeding the admissible speed of the introduction of this process. Sometimes economic partner relations do not allow to quickly "digest" the natural consequences of the accelerated retreat from the dollar to national currencies. This leads to problems.

Thus, Russia has accumulated billions of rupees in Indian banks that it cannot use. This was publicly announced on Friday, May 5, by Foreign Minister Sergei Lavrov, pointing to the rapidly growing trade surplus with the South Asian country.

This is problem. We need to use this money. But for this, rupees must be converted to another currency, and this is now being discussed.

- Lavrov admitted to reporters on the sidelines of the meeting of the Shanghai Cooperation Organization, held in Goa.

India's total exports to Russia fell 11,6% to $2,8 billion in the first 11 months of fiscal year 2022-23, while imports rose almost five-fold to $41,56 billion, according to the Department of Trade and Industry. The surge came after Indian refiners bought up cheap Russian oil last year, which the West shunned because of Russia's NWO in Ukraine.

Imports of Russian oil to India in April reached a record 1,68 million barrels per day, which is six times more than a year earlier (data from the analytical company Vortexa Ltd). But these records turned into a trap. Solving this problem will not be as easy as it might seem.

According to Bloomberg, the Kremlin initially encouraged India to trade in national currencies after sanctions against Russian banks and a ban on transactions using the SWIFT messaging system. But the volatility of the ruble shortly after the outbreak of the conflict meant that plans to organize an oil import mechanism based on the ruble and rupee were abandoned.

As a result, the resulting imbalance in trade for Russia means that the amount of "frozen funds" (stuck) can reach tens of billions in dollar terms. The situation is exacerbated by India's historically high cumulative trade deficit, which reduces the possibility of cashless payments with third countries.
  • Photos used: pixabay.com
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  1. Nikolay Volkov Offline Nikolay Volkov
    Nikolay Volkov (Nikolai Volkov) 6 May 2023 09: 10
    instead of one cut paper, for which they couldn’t buy anything, they now got another one ... an ingenious strategy ... well, give India these rupees back ... is it the first time you give money to "respected partners" ???
    1. Monster_Fat Offline Monster_Fat
      Monster_Fat (What's the difference) 6 May 2023 09: 45
      How many times did he say that it is possible to exchange demanded resources only for demanded currency, that is, for the currency that has purchasing power everywhere. Trading for rubles is idiocy, because without trading, you can print so many rubles that you can only eat booty. Trading for a currency that cannot be spent anywhere except in the country you are selling to is a crime, because this is a link to this country, on the one hand, and on the other, if there is nothing to buy for this currency in this country, then it turns out that you are just gave his goods to this country, for free. How they don't understand this, I just don't know how alternatively gifted you have to be for this. request You can't spend rupees, buy gold, platinum, palladium with them. Yes, there will be losses, but this is better than just losing in banks on the depreciation of this rupee.
      1. Andrew13 Offline Andrew13
        Andrew13 (Andrei) 6 May 2023 21: 03
        Well, it’s all these “gifted ones” who rule the state in our country. Recently, Naibullina was praised in the United States, what more evidence is needed?
        1. hellman anton Offline hellman anton
          hellman anton (hellman anton) 6 May 2023 22: 30
          How does the head of the central bank influence the cunning plans of others? You attribute to the Central Bank a completely different thing that they do not do and do not do.
          As you can see, the sanctions on the banking sector did not cause any critical damage. It turns out that IMF agents work better than ostentatious patriots from all sorts of finance ministries, defense, and so on.
          Regarding the lost 300 billion - how could the Central Bank predict the cunning plan of someone?
  2. Sergey Latyshev Offline Sergey Latyshev
    Sergey Latyshev (Serge) 6 May 2023 09: 18
    Lavrov told about another gag ...
    Although Capitalism is in the yard.
    There is no money for anyone. While they are there, they can be "scrolled" into someone's pocket. Optimize, exchange between pockets.
    Oligarchs, officials and bankers know how to do this ...
  3. rotkiv04 Offline rotkiv04
    rotkiv04 (Victor) 6 May 2023 09: 24
    nothing, we believe in the genius of the great hacker, he will certainly destroy everything
    1. hellman anton Offline hellman anton
      hellman anton (hellman anton) 6 May 2023 10: 58
      He is our geostrategist.
      He outplayed everyone.
      He showed us an analogue.

      And brought a cunning plan
      brought a million guest workers.
      He told us "Russian world".
      Gazneft gave the West.

      Even if you laugh, even cry
      But they want to rule.
    2. GIS Offline GIS
      GIS (Ildus) 10 May 2023 07: 59
      Well, so the "hppeshnik" became president, and what have you achieved ???
      ps this is me to ensure that their bile is not "scattered" here, and not to the head of my country
  4. Constantine N Offline Constantine N
    Constantine N (Constantin N) 6 May 2023 09: 32
    And why did he even say that Russia just gives away oil?
  5. Vox Populi Offline Vox Populi
    Vox Populi (vox populi) 6 May 2023 17: 23
    The unpleasant facts of foreign trade have long been written here in the comments. And so:

    In principle, trading for rubles was a good idea. But who developed such an idiotic mechanism for her and slipped it to the president? I would like to know the names of the "heroes" of our time - these homegrown geniuses of economic thought.


    Russia and India have suspended work on the settlement mechanism in rupees
    Such a mechanism turned out to be unprofitable for Russia due to trade imbalances and the inability to fully convert rupees, the agency writes. Now the parties are looking for alternatives, and trade continues mainly in dollars.
  6. Foe Pshekov Offline Foe Pshekov
    Foe Pshekov (Arkady) 6 May 2023 23: 35
    no currencies are needed - only a commodity exchange, we roll out everything we need from India (and others similarly) in the lists, where they will take it and at what price - their problems. We fix barter interests and wait for delivery. There are deliveries, we ship oil. No supplies - we plug the wells. We leave resources to children and grandchildren. Distribution of gifts for nothing, even to the bourgeois, even to the Indians, even to the Chinese, is not included in the plans.
  7. Alex D Offline Alex D
    Alex D (Alex D) 6 May 2023 23: 43
    Let the Indians compensate us, say, with construction or something else. No tea to return 40 billion dollars? ;)
  8. Andrey Andreev_2 (Andrey Andreev) 7 May 2023 20: 23
    ... and what kind of bastard supplies crude oil through Druzhba to vile Poles in Litvinov ??? For rubles?? Enemies among the Russians!!! At a time when Russian boys are laying their heads in the war, bastards are stuffing their pockets (((