Lavrov’s remarks came after India and Russia halted efforts to sort out bilateral rupee trade, after months-long negotiations failed to convince Moscow to keep the rupee in its coffers. Reuters reported on Thursday, citing two Indian government officials.
“For the rupee, it is a problem because there are billions of rupees accumulated in accounts in Indian banks and we have to use this money,” Lavrov told a press conference in India.
“Therefore, rupees need to be converted into other currencies. This issue is under discussion,” he added.
India began seeking a rupee settlement mechanism with Russia shortly after the start of the Russian military operation in Ukraine in February last year, but no agreement has been announced.
With a large trade deficit in favor of Russia, Moscow estimates it will have an annual rupee surplus of more than $40 billion if such a mechanism is put in place, according to an Indian government official who declined to comment. to be appointed to Reuters.
India’s currency is not directly convertible and India’s share of world merchandise exports is only about 2%, and these factors reduce the need for other countries to hold the rupee.
India’s imports of raw materials from Russia have been increasing since February last year, as Russia offers deep discounts on commodities, especially energy. India’s imports of Russian oil have reached a record 1.4 million barrels per day in January, a 9.2% 0% increase from December, nearly quadrupling India’s total imports from Russia to 46.33 billion dollars for the year ending March 31.
The two countries began talks last month to discuss a free trade agreement. Indian External Affairs Minister Subramaniam Jeshinkar said his government was considering a “pre-agreement” on a trade treaty, which, according to the Russian Minister of Trade and Industry, Denis Manturov, would guarantee bilateral investments between the two countries. the two countries.
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