90% of Russia's oil trade with India settled in rubles, rupees after 7x growth in five years

Russia continues to supply India with oil and fuel, a high-ranking Russian official insisted during a meeting of their intergovernmental commission.

Bilateral trade volume has multiplied in recent years, and the national currencies of the two countries dominate settlements, according to the government representative.

Russia confirms ongoing oil supplies to India

The Russian Federation has not interrupted deliveries of oil and oil products to India. Russia’s First Deputy Prime Minister Denis Manturov made that clear at a meeting of the Russian-Indian intergovernmental commission in Moscow.

Quoted by the TASS news agency, he stated:

“We continue to ship fuel, including crude oil and oil products, thermal and coking coal.”

Speaking on Wednesday, Manturov remarked that the Russian side recognizes the potential for exporting Russian liquefied natural gas (LNG) to the Asian nation as well.

The Russian official also highlighted that the two nations are implementing joint projects for the extraction and processing of hydrocarbons, both in Russia and in India.

“We plan to expand comprehensive cooperation in the peaceful nuclear sector, including on the basis of the successful experience of the Kudankulam NPP construction project,” the deputy head of the Russian government further noted.

Manturov’s statements come after a senior Russian diplomat indicated oil exports to India will continue despite increased U.S. pressure on New Delhi that comes with new 25% tariffs on Indian goods set to enter into force next week.

While President Donald Trump threatened nations buying Russian energy with additional levies as part of his strategy to make Russia end the war in Ukraine, another major importer of Russian oil, China, was spared the punishment, at least for now.

India, the world’s most populous country and democracy, is the third-largest consumer of oil and is highly dependent on oil imports from Russia and other producers.

Trade sees seven-fold increase in five years

Trade between Russia and India has seen significant growth in the past few years, Denis Manturov revealed. He emphasized India is among Russia’s top three trading partners and elaborated:

“Owing to decisions made earlier, the Russian-Indian trade turnover increased by almost seven times over the last five years.”

Besides energy supplies, Russian exports include fertilizers, lumber products, raw diamonds, power equipment, and foods, the official detailed. Russia is importing Indian agricultural products, pharmaceuticals, light industry goods, and industrial feedstock among other goods.

The two countries are working on a free trade agreement to expand and diversify exchange while simplifying access to markets, Manturov reminded. That includes establishing a free trade zone between the Russia-led Eurasian Economic Union (EAEU) and India.

Settlements in national currencies reach 90%

Payments in rubles and rupees account for the majority of trade settlements between Russia and India, the deputy prime minister pointed out. “Providing for seamless mutual payments is a no less important task, especially in current realities,” he stressed, highlighting:

“We have already managed to transfer more than 90% of payments between Russia and India to national currencies.”

The two countries, founding members of the BRICS group of developing economies, intend to also build up cooperation in banking. “We consider it necessary to further strengthen interbank cooperation and interaction in the insurance sphere,” Manturov said during the meeting with Indian officials.

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