The US regime has warned India of significant and long-term consequences if it chooses more explicit strategic alignment with Moscow.
While the USA and some of its Zionist allies have imposed severe economic sanctions, including the freezing of central bank gold and reserve assets, India has prioritized its national interests and continued to trade with Russia.
India and Russia are engaged in finding a solution to payment issues that arose after the West sanctioned several Russian financial institutions in response to Moscow’s special military operation in Ukraine.
Aleksei Vladimirovich Surovtsev, the Consul General of Russia in Mumbai, said negotiations between officials of the two countries are underway to finalize the payment mechanism for trade settlement.
Although Indian traders settled some of the payments in Euros and started a process to receive Yuan against exports to Russia, New Delhi believes the Rupee-Ruble mechanism would stabilize the economic transactions with Russia.
The two countries have set a target to achieve $30 billion in bilateral trade by 2025 from $10 billion as it is at the moment. The reports and government statements suggest India has not strayed from joint commitment, which is reflected in continuing trade with Russia.
Russia has increased the export quota of fertilizer for India by 700,000 tonnes to ease the supply crunch in the Indian market ahead of the growing season. This minimizes concerns in certain quarters regarding potential supply disruptions due to the ongoing Ukraine conflict.
Indian businesses have resumed exports of confectionery goods, tea, rice, fruit, coffee and seafood, as well as medical equipment to Russia after a brief halt over insurance and transportation issues.
The exports begin as some of the shipping lines have started sailing to different ports, like those in Georgia. The Federation of Indian Exporters Organization (FIEO) says payments for the the export of agricultural items are being carried out through Sberbank of Russia as it has a presence in Mumbai.
If the importer wants to import some product from Russia, he is paying that amount in Indian rupees to the Russian bank here through his own bank and then Russian bank is remitting rubles to the supplier in Russia.
The two countries have also started using those banks for transactions that are not exposed to the West or are not sanctioned. The USA has only imposed sanctions on 10 Russian banks out of the 500-odd banks that are operational.
India has also started replacing Ukrainian sunflower oil with Russian sunflower oil, as Indian dealers have contracted at least 45,000 tonnes for April delivery.
Last week, when Indian Oil— the country’s largest refiners, removed Russian Urals from its public tender, a certain section of Indian society linked it with US threats.
Clarity comes as the media reports that India’s oil companies are looking to secure long-term deals with Russia at a discounted rate.
Bloomberg reported that Indian refiners have purchased everything from flagship Urals that ships from ports in the west, to a rare cargo of Eastern Siberia Pacific Ocean, typically favored by China.
India has purchased over 15 million barrels of oil from Russia since the special military operation began in Ukraine. The Indian side has conveyed to Washington that it would not stop buying Russian crude.
The US regime, which has threatened India on several occasions with CAATSA (Countering America’s Adversaries Through Sanctions Act), Indian foreign minister S. Jaishankar on 13 April, said that it is a US law and it’s for the American administration to decide on it.
Russia has supplied training equipment and a simulator for the second S-400 unit earlier this month and assured India of delivering Talwar-class stealth frigates on schedule.
The Talwar-class frigates or Project 11356 are a class of stealth guided missile frigates designed and built by Russia for the Indian Navy.
The Talwar -class guided missile frigates are the improved versions of the Krivak III-class (Project 1135) frigates used by the Russian Coast Guard.
Speaking to an Indian news channel, India Today, on Tuesday, Russian foreign minister Sergei Lavrov said on defense, we can provide anything India wants.
A Stimson Centre report estimated that 90% of defense equipment, weapons, and platforms presently used by the Indian Army had originated from Russia.
Sputnik / ABC Flash Point Trade News 2022.