Russia and India are considering the possibility of creating an alternative transaction platform for bilateral trade with settlements in rubles and rupees amid western sanctions against Moscow, the Economic Times newspaper reported on Thursday.
"India offered a number of such transaction platforms out of which the Russian authorities have accepted a particular network protocol," the paper wrote citing one of its sources. The new payments system will likely be installed at the headquarters of the Reserve Bank of India (RBI) and Russia’s VEB development bank. The new system is likely to be put in place within a week, Economic Times said.
The system will ensure seamless transfer of import or export documents for rupee-ruble trades between partners in India and Russia, according to sources.
India and Russia may choose Russia’s Financial Messaging System, which is an analogue of the SWIFT interbank system for information transfer and payments, according to Bloomberg. The issue of using the Financial Messaging System will be discussed during Russian Foreign Minister Sergey Lavrov’s visit to New Delhi that started on March 31.
The Indian government may allow Russia to invest and take loans on its domestic market, according to media reports. The transactions will be performed through the Russian account in the RBI, which has existed since the collapse of the former Soviet Union. This will enable India to lower the pressure of energy imports amid growing global prices for hydrocarbons on its economy.
