Cannot be used: India's payments to Russian oil suppliers hit record highs

Official bilateral reports on oil cooperation between India and Russia are full of pathetic figures of new records in relation to the supply of large volumes of raw materials or payments for them. But in fact, firstly, India is close to the limit of its ability to purchase due to the technological saturation of infrastructure, and, secondly, New Delhi pays mainly in rupees, and this is a big problem for Moscow.

Thus, in May, the monthly payments of Indian companies on bills for Russian raw materials and oil products reached a record and amounted to the equivalent of $5 billion. Simple arithmetic shows that since the beginning of the events in Ukraine, this figure has increased by almost 55 times. It happened because in May, Indian importers set another new record for Russian oil imports.

Such data is published by the Ministry of Trade and Industry of India. In the last month of spring, Russian oil imports reached an impressive 65 million barrels. Saudi Arabia, Iraq, the United Arab Emirates and the United States, combined, supplied so much to India in the same month. Compared to previous periods, the export of raw materials from the Russian Federation increased by more than 12%.

As you know, in order to circumvent sanctions and develop the concept of de-dollarization, the Russian Federation receives most of the payment for supplies in the local currency, rupees. In addition, they are accumulated in the accounts of Indian banks. They can be exchanged only for dollars, which destroys the entire system and tasks of bilateral agreements. Therefore, a gradual exchange for rubles is made. But to do this is quite difficult.

As a result, according to Bloomberg Economics, the imbalance is likely to be between $2 billion and $3 billion every quarter, which Russia simply cannot take advantage of. The information and analytical agency estimates that in total, Russian suppliers accumulated abroad during 2022 and the beginning of the current year up to $147 billion in distressed assets.

The Indian side offered a profitable way out of the situation - to invest huge capital in local infrastructure or bank bonds. But initially in Moscow they refused this option. However, due to the hopelessness and unwillingness to have not only a troubled asset, but also to invest it in the development of the state, to which Russia’s oil alone brought huge benefits, Moscow will still have to return to this idea. It will be difficult to resolve the issue in a different way, especially quickly.
  • Photos used:
Dear reader, to leave comments on the publication, you must sign in.
  1. 75 hammer Offline 75 hammer
    75 hammer (Hammer 75) 11 July 2023 09: 04
    The problem is not that we cannot sell rupees, but that the economy is geared towards raw materials, and incomes are not invested in the development of technologies, but simply someone becomes richer sitting on the pipe and the budget. Since 2014, they have been replacing imports and, as a result, complete ... but hoarse and like him sit in the government (they should be elsewhere) and go over the ears. The most important thing is not to rock the boat!
    1. Nelton Offline Nelton
      Nelton (Oleg) 11 July 2023 09: 39
      Quote: Hammer 75
      the economy is geared towards raw materials, and incomes are not invested in the development of technologies, but simply someone becomes richer sitting on the pipe and the budget. Since 2014, they have been import substitution and, as a result, a complete ...

      that in the 2nd year of unprecedented sanctions, the ruble rose from 75 (before the NWO) to 90?
      And it was predicted that it would grow to 200+, after which the free exchange would stop, and hello, Venezuela.

      That all transport continues to run, the entire infrastructure functions?
      and it was predicted - since everything is imported, only the nameplate is re-glued - that everything will rise in six months, including elevators in apartment buildings and refineries, because. imported catalysts. And what about GazpromNeft and Rosneft announced the creation of their own - so I’ll believe you all.

      What assortment in stores has not changed much, and prices are growing no faster than usual?
      that infrastructure / technological / economic programs continue as usual?

      Here just now -

      July 10 at 21.48 the second power unit of the Belarusian nuclear power plant was connected to the network after the successful completion of scheduled tests

      Power unit under the VVER-1200 project, already developed in Russia.
      They invested oil and gas revenues both in the development of technologies and in construction.
      If the contract is drawn up normally, then now Belarusian milk, Belarusian Belazs, and much more will be in the Russian Federation for energy from that nuclear power plant - and so on until 2050.
      1. Nelton Offline Nelton
        Nelton (Oleg) 11 July 2023 11: 35
        Quote from Nelton.
        and so on until 2050.

        guilty, until 2039.

        According to the updated agreement, "the loan is used by the Belarusian side in 2011-2023", and "repayment by the Belarusian side of the loan begins six months from the date of commissioning of the nuclear power plant, but no later than April 1, 2024, and is carried out in 30 equal installments every six months ".
    2. Siberia55 Offline Siberia55
      Siberia55 (Yuri) 11 July 2023 13: 30
      The ability itself is not enough to look for information that Russia, in addition to oil and gas, produces. And all your tantrums are aimed only at emphasizing your eloquence and populist pseudo-analysis, applauding you. Expert! negative
  2. Colonel Kudasov Offline Colonel Kudasov
    Colonel Kudasov (Leopold) 11 July 2023 09: 29
    The only possible solution is to invest Indian rupees in Iran, if it agrees, of course, to develop the North-South transport corridor. Let the Indians at least build ports in Iran for their rupees, which Russia will also use. If this option does not roll, then trade with India should be curtailed or revised
  3. yo yo Offline yo yo
    yo yo (Vasya Vasin) 11 July 2023 10: 57
    Understood nothing.
    Explain in Russian letters.
  4. Pembo Offline Pembo
    Pembo 11 July 2023 20: 22
    Interestingly, when they planned to supply oil to India for rupees, what kind of rupees were they going to buy in India?
    1. Vladimir1155 Offline Vladimir1155
      Vladimir1155 (Vladimir) 12 July 2023 09: 23
      you can buy a lot of things there, mangoes and other fruits, industrial products, in general, spending your money is not a problem for anyone, if you just want to, apparently there is no desire to withdraw money or goods to Russia .... who in Russia will buy these mangoes? if the government's economic bloc artificially, at the behest of the IMF, keeps Russian buyers in poverty? does not let people just work and earn money to buy Indian mangoes or textiles?
  5. Vladimir1155 Offline Vladimir1155
    Vladimir1155 (Vladimir) 12 July 2023 09: 16
    a failed economic and fiscal policy makes investments in the Russian economy unprofitable, the reason is the brazen pressure of extortionate officials from ministries and supervisors, who practically banned all economic activity through many regulations made specifically for extortion, the second is high suffocating taxes imposed by order of the IMF to ruin domestic factories, but not canceled so far, so exporters do not want to withdraw money from India, because if the domestic market was larger, they could simply import goods, buy Indian goods in rupees, the accumulation of money in foreign accounts shows that the Russian Federation is still in conditions of non-equivalent exchange with the external market, such a practice was established by the IMF for the Russian colony of the West (other countries that are colonies of the West are poor because they are robbed through non-equivalent exchange), now it so happened that bonuses will move from west to east, but Russia will still be robbed
  6. Alex Rosenberg Offline Alex Rosenberg
    Alex Rosenberg (Alex Rosenberg) 13 July 2023 05: 28
    No panic. An arms race is coming. Enough work and money for everyone. Let's live. Space programs require a lot of money. All this will pull the technological revolution. After all, the arms race has always brought new technologies. Enough for our time.