India confirms problems with payments for Russian oil

Russia and India continue discussing a mechanism of mutual settlements in rubles as the problem of exports-imports imbalance that arose due to payments for Russian oil persists.

President of the Confederation of Indian Industry (CII) R Dinesh told reporters from G20 countries that the sanctions-induced imbalance became a 100-percent reality. Russian and Indian authorities continue looking for ways to resolve difficulties. They also consider an opportunity to set up a mechanism for settlements in rubles.

Problems in Russia's oil trade with India emerged in the spring of 2023. They emerged after Russian oil companies attempted to switch to national currencies — rubles and rupees — in mutual settlements.

The companies thus attempted to circumvent Western sanctions that prohibited oil supplies at prices higher than $60 per barrel. However, Indian companies did not have enough rubles, and it was not easy to withdraw rupees from local banks due to peculiarities of local legislation.