BLUF
In response to the invasion of Ukraine, sanctions have resulted in Russian banks being largely cut off from Western payment systems. Consequently, Moscow is struggling to convert foreign currencies.Summary
KEY POINTS:
- Moscow's invasion of Ukraine triggered sanctions, forcing Russia to offer crude at discounted rates. India became a major buyer.
- Indian importers have been paying for Russian oil in rupees, but currency restrictions are causing issues for Russian entities.
- Uncertainties over payment mechanisms have also hurt defence imports between the two countries.
References
- Why India, China's Bitter Foe, Won't Become a U.S. Ally | The Runway (airforce.gov.au)
- MAY 2023 Exclusive: India, Russia suspend negotiations to settle trade in rupees—Reuters
- MAY 2023 India, Russia Halt Rupee Trade Talks, Moscow Prefers Yuan—Asia Financial
Source Information:
- Article Source: News and current affairs from Germany and around the world – DW
- Media Check: DW - Media Bias Fact Check (mediabiasfactcheck.com) MBFC Credibility Rating: HIGH CREDIBILITY
- RAAF RUNWAY: RATIONALE, GUIDELINES, LEARNING OUTCOMES, ETC.
