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.
- 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.