Deputy Prime Minister Borisov has called the share of the ruble in settlements with India :: Policy :: RBC

The share of payments with India in rubles for export and import is more than 20%, said Deputy Prime Minister Yuri Borisov. According to him, the increase in the share of calculations in national currencies — one of the ways of dealing with sanctions

Yuri Borisov

(Photo: Yuri Smityuk / TASS)

The authorities of Russia and India discussed the development of mutual settlements in national currencies, said Deputy Prime Minister Yuri Borisov, answering the question of RBC at the end of the meeting of the intergovernmental Russian-Indian Commission.

“Today, the share of settlements in roubles for exports is 20% and import — 21% — said Borisov. — This is a good indicator. Nevertheless, we will increase payments in national currencies as one of the possibilities to eliminate the situation which has developed with non-payment. This applies to contracts for military-technical cooperation.”

According to the Central Bank, at the end of 2017, the share of the ruble in settlements with India for exports was 20.4% and in the first quarter of 2018 to 19.4%, in imports of 21.6 and 24.5%, respectively.

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According to him, it’s “really painful”. “You know perfectly well that it worsened after the imposition of sanctions. Therefore we paid a very detailed attention to this issue”, — said Deputy Prime Minister.

At the end of August that U.S. sanctions have hindered foreign payments of Russia on contracts, with reference to the Manager of the enterprise of defense industry and a person close to the “Rosoboronexport”, told the newspaper “Vedomosti”. From India, as indicated by the sources, payments of Russia on most arms contracts have ceased to arrive since April. One of the sources of the newspaper were tied up with American law “On combating the enemies of America through sanctions” (CAATSA). The document allows you to impose secondary sanctions against contractors of the defendants in the black list (in it, in particular, is “Rosoboronexport”).

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In this regard, the Russian side, as indicated by “Vedomosti”, is working on new options, in particular, develops the ability of clearing and settlement using the currency of other countries, which would eliminate risks for Indian banks. Before that, in June, the suspension of India’s payments for military supplies from Russia reported Indian newspaper The Economic Times.

The forum “Army-2018”, the General Director of “Rosoboronexport” Alexander Mikheyev said that the company because of the sanctions the US has already started to use alternative currency in settlements with their counterparties. “We are considering the possibility of settlements in national currencies is the Indian rupee, the Chinese yuan, dirhams, and rubles”, — noted Mikheev.

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Borisov, speaking to reporters on 14 September, also said that a series of contracts on military-technical cooperation has been transferred to settlements in national currencies. What treaties in question, the official said, noting however, that Russia have contracts with Iraq or China in us dollars, “there is no need” (quoted by “RIA Novosti”). “Us dollars are not needed, we need rubles,” — said Borisov.

The situation Deputy Prime Minister explained the imposed US and EU sanctions. To predict the timing of a full transition to such payments the Deputy Prime Minister is considered impossible.

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