Rupee Accounts Will Ease India's Trade with Russia

By John Jeffay / September 20, 2022 / www.idexonline.com / Article Link

(IDEX Online) - State Bank of India (SBI), the country's largest lender, is opening rupee accounts to handle Russia-related trade settlements.The news follows an announcement by the Federation of Indian Export Organisations (FIEO) that the state-owned bank was being authorized to promote rupee trade with Russia. Moscow is now expected to name a Russian bank to operate the trade mechanism.The move will allow India to more readily buy diamonds from Russia's state-controlled miner Alrosa.  India has not imposed sanctions on Russia, but dollar transactions have been outlawed. Last month SBI said it would start lending to manufacturers of lab grown diamonds, supporting plans to expand the sector into a $5.1bn-a-year industry.

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