russia cannot get $39 billion for the oil sold to India – it is stuck in Indian banks
The Indian Central Bank bans the circulation of its currency outside the country
russia has increased oil supplies to India 11 times and launched trade in local currencies due to sanctions. However, because of this, russian exporters have faced the inability to receive money for the oil they sell.
About $39 billion is stuck in Indian banks, and oil companies cannot return it to russia.
Source. Reuters writes about this citing a source in banking circles.
In particular, we are talking about Indian rupees that exporters receive instead of world currencies. It is currently impossible to use the rupees that russia receives for goods sold to India. The withdrawal of rupees from India is blocked by local regulations: the Indian Central Bank prohibits the circulation of its currency outside the country.
Supplies of goods from India, which could be spent on rupees, are negligible: in January–May 2023, they amounted to only $639 million, while russian exports to the Indian market were 40 times higher – $26.5 billion.
A solution to the problem has not yet been found, Dinesh, president of the Confederation of Indian Industry, admitted at a briefing in New Delhi on 16 August.
The reason for the trade imbalance is the sanctions imposed on russia, he said. Due to this, settlements in dollars are too risky.
The search for a solution has been going on at least since last fall and has so far proved to be in vain.
Background. As a reminder, the new bank created by the BRICS countries will not invest in russia because of the sanctions. The head of the bank called "groundless" the assumption that the bank could continue to work with moscow.
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