A system that could allow the direct rupee to rouble payments could belaunched this week, enabling trade between India and Russia, according to atop Indian trade official.
A Sakthivel, President of the Federation of Indian Export Organisations(FIEO), recently told *CNBC *that the arrangement would pave the way forfinancial operations between the two countries as they bypass the USdollar, *RT* reportedlink.
Moscow is currently barred from using the US currency in wake of USsanctions over the invasion of Ukraine.
The official further stated that the Indian government was working toenable up to five Indian banks to engage in the mechanism.
The move would essentially allow Indian exporters to continue business withRussia despite the US sanctions.
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Sakthivel went on to add that the sanctions actually allow the Indianeconomy to make expansion into the Russian markets.
“Export to Russia is not much, only in agriculture and pharmacy products.Now that the whole of the West is banning Russia, there will be a lot ofopportunities for Indian firms to enter Russia,” he said.
India is yet to announce the said agreement officially. “The governmentwill take into account all the factors. The government is playing it verycarefully,” the official added.
