Aiming at strengthening economic ties with India, Russian envoy Denis
Alipov said payment problems hinder trade and there is a need for “extra
efforts” from banks and exporters to overcome this hurdle.
Russian Ambassador to India Denis Alipov said the Vostro trade settlement
mechanism (Rupee payment) did not work well.
“Some extra efforts are needed by companies and banks to explore the
conditions,” he said. He, however, did not elaborate on what he meant by “extra efforts”.
In response to a question on the sidelines of an MCCI-organised
interactive session, he emphasised the necessity for additional efforts from
Indian banks and exporters to resolve this issue.
Though he admitted that resolving the payment method would require much
fine-tuning, Alipov said banks are willing to cooperate.
On the defence deal for the advanced long-range surface-to-air missile
defence system S-400, Alipov acknowledged delays but said supplies are on but
in a new schedule.
Sanctions led to Russian banks being banned from the Swift banking
network.
Despite these challenges, Alipov remained optimistic, anticipating a
trade boom once the payment mechanism is streamlined.
Simultaneously, the Russian diplomat expressed interest in greater
collaboration in the MSME sector, with a sizable delegation heading to West
Bengal for BGBS, the two-day investment summit starting Tuesday.
There is interest in various sectors such as energy, defence, space,
logistics, education, railways, and hospitality.
The bilateral trade in FY’23 reached US$ 49 billion, solidifying Russia
as India’s fourth-largest trade partner.
PTI
