MOSCOW, July 30 (RIA Novosti) – The Bank of Russia and the Reserve Bank of India have agreed to set up a working group to devise tools to use national currencies in bilateral payments, the Russian regulator said Wednesday.
The group, that may involve representatives of banks and also ministries and agencies of both countries, will be controlled by the central banks of Russia and India.
The decision was announced at the meeting of a group overseeing banking and financial issues at the Russian-Indian commission on trade and economic, scientific, technical and cultural cooperation.
The Russian Finance Ministry is currently working on transferring to ruble payments for certain types of exports against the backdrop of Western sanctions against Russia over its position on Ukraine.
In early June, Russian Finance Minister Anton Siluanov said the central banks of Russia and China could agree to currency swaps for export payments in their respective national currencies. While many of Russia’s partners already use the ruble to trade with Russia, most export contracts are still settled in dollars.
Kremlin Chief of Staff Sergei Ivanov said in early July that the idea of Russia and China transferring to payments in both rubles and yuan is realistic but cannot be done in a single step.