Russia using a ‘tailored’ approach

• Russian exporters of military products are operating in a new reality and payments for defence deals in U.S. dollar and euro have been reduced to a minimum

New Measures

• Russia is adopting various measures to offset the impact of sanctions including switching to payments in national currencies.
• “In connection with the current political events, certain logistical problems may arise which entail changes in the timing of the supply of military products to foreign customers.

India’s Viewpoint

• In addition to apprehensions about timely deliveries of spares and equipment due to the war in Ukraine, another issue that has arisen is payments for deals underway since Russia was shut out of the global SWIFT system for money transfers.
• The Central banks of the two countries had extensively discussed this issue and small payments have been resumed, officials stated that modalities to undertake larger payments are still being worked out.
• India and Russia have already agreed to conduct payments through the rupee-rouble arrangement.
• There are other areas of cooperation between our countries such as creating conditions for servicing the delivered weapons and equipment in India, as well as jointly producing various types of equipment and weapons for sale in third countries.