AsianOil: Russia stuck with $1bn of rupees per month on Indian trade

Russia is accumulating up to $1bn per month in rupee assets stranded outside the country due to unresolved issues in the trade relationship with India, Bloomberg reports.

bne IntelliNews has already analysed how India and Russia have a problem caused by the SWIFT sanctions that have, in effect, made it impossible for Russian banks to use dollars. The issue is that trade is booming, and Russia is running a $30bn trade surplus with India, of which some $20bn is from the ballooning sales of crude oil to Indian refineries.

Stagnant exports from India mean that Russia sees an excess of rupees, which its companies have trouble repatriating because of local currency restrictions. Deadlock over a solution has left Russia anticipating the surplus to rise further, unnamed sources familiar with the negotiations told Bloomberg.

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