No payment has been initiated, according to Russian banks, who do not want surplus rupee to amass.According to figures from the trade ministry, New Delhi’s imports from Russia in the eight months leading up to November were about 16 times greater than its exports. The idea of rupee trading was sparked by Russia’s conflict with Ukraine, which prompted US-led sanctions, as India increased its purchases of inexpensive oil from Moscow to offset rising imports.
Source: Mint NewsThe system served as a model for creating such agreements with other countries like Sri Lanka and Mauritius.Slow trade developments between the rupee and Russia might put additional pressure on the local currency, which has fallen the most against the dollar among emerging Asian currencies in the last year. After its current account deficit, the broadest indicator of trade in goods and services, extended to a record in July-September, India is relying on the internationalization of the rupee to lower dollar demand and lessen the vulnerability of its economy to external shocks.
Last month, representatives from the two countries met to discuss methods to increase exports to Russia in industries like electronics in order to restart the rupee trade mechanism
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