Indian Government steps in to tackle Russian trade hurdles

By Trend

The government has convened a multi-Ministerial group to look into how to overcome challenges in trade with Russia, including managing payments for exporters and importers, External Affairs Minister (EAM) S. Jaishankar said in Parliament on Thursday, in comments that indicate a possible revival of “Rupee-Rouble trade” in the wake of economic sanctions against Russian banks and entities by more than 40 U.S. and European allies, Trend reports citing The Hindu.

Answering a number of queries during Question Hour in the Rajya Sabha on India’s stand on Russia and Ukraine, including some that raised concerns over India’s abstentions at the United Nations and the impact of Indian policy on India’s trade and ties with the U.S., Mr. Jaishankar said that India’s position is “for peace” and that foreign policy decisions are made in “Indian national interest”.

To a specific question from Naresh Gujral (Shiromani Akali Dal) on whether the government would reactivate rupee trade, or trading in local currencies with Russia, Mr. Jaishankar said that, “because of the emerging problems in dealing with Russia, [the] government is examining various aspects, including the payment aspect”.

“There is a group within the government composed of different Ministries. It is led by the Finance Ministry to examine these matters,” Mr. Jaishankar added. To a question on purchasing more Russian oil, Mr. Jaishankar said India’s oil imports from Russia at present are “very little”.

Mr. Jaishankar also responded to a question from Jose K. Mani (Kerala Congress-M), who referred to U.S. President Joe Biden’s statement that India’s support on sanctions was “somewhat shaky” amongst Quad partners, as well as a question from Swapan Dasgupta of the Bharatiya Janata Party (BJP), who asked whether there would be any “negative impact” on India’s relations with its “closest allies”.