Russia's trade with India is booming and bilateral payments are proceeding smoothly without the glitches hampering trade with other countries, deputy CEO of Russia's Sberbank says (www.reuters.com)

submitted 2 months ago by Cephalotrocity@biglemmowski.win to c/ukraine@sopuli.xyz

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cross-posted from: https://feddit.org/post/2497007

Russia's trade with India is booming and bilateral payments are proceeding smoothly without the glitches that have been hampering trade with other countries, Anatoly Popov, deputy CEO of Russia's largest lender, Sberbank, says.

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[-] mindlight@lemm.ee 18 points 2 months ago

Modi tells Zelenskiy he is ready to work ‘as a friend’ to bring about peace deal

So this is how India is Ukraine's friend to bring about peace?

[-] ChicoSuave@lemmy.world 5 points 2 months ago

You trust Modi? He's been a snake in the grass for a decade now. He is India's fascist, pro-religious genocide leader. He's playing both sides because he thinks as long as he can maintain balance between both sides he can get stuff like free oil and trade concessions with the West.

[-] partial_accumen@lemmy.world 3 points 2 months ago

India, since independence, has always been for India first. It doesn't always work out for us in the West, but given their history especially under British rule and the partitioning, I don't blame them. The governments as they are today have only been around for 77 years (since 1947). Cooperation with russia isn't new, but its also not exclusive. India also cooperates in many ways with Europe (spaceflight) and the USA (economically), but rest assured they are their own nation with their own goals. The only large country I don't see them building cooperation on is with China, which of course helps the West.

[-] mindlight@lemm.ee 2 points 2 months ago

I never said I trusted Modi...

Also, I haven't seen any gigantic protests in India against financially supporting Russia's attempts to invade and colonize other countries.

I guess it's ok as long as it's not BRICS countries getting colonized... Good to know.

[-] Earthprototype@lemmy.world 14 points 2 months ago

"We're struggling to cope with sanctions and most of our transactions are denied, India barely makes up for small portion of lost commercial revenue while they buy our oil for dirt cheap..."

[-] partial_accumen@lemmy.world 11 points 2 months ago

The way I'm reading this, this is not good news for russia.

"Today, we are opening accounts in rupees for Russian clients as well. We do not rule out the possibility that, in addition to being a means of payment, the rupee may also become a means of savings," he added.

Russia is a captured customer. They're able to sell their oil and settle the transaction in Rupees (the currency of India). So essentially the only things they can buy with that money are product if India. India businesses selling to russia know this too, so they can jack up their prices knowing that russia doesn't have another place to spend the money.

Countries around the world very typically buy up each other's currency (usually in the form of Treasury notes or certificates, but actual cash is also just as valid). Because russia is now holding larger and larger sums of Rupees without spending them, this also helps increase the value of India's currency in the world.

For US audiences, think about coal mining towns of the early 20th century and coal companies paying their workers in 'scrip' which was money only spendable at the company owned store. Because it was only spendable at the company store, prices could be high on products, and you wouldn't have a choice to shop elsewhere. Further, you couldn't save up your money to move away, because what you're saving is just company scrip, not real money. This is close to what India appears to be doing to russia.