Exploring the Evolution of Russo-Indian Financial Relations
The financial aspect of the Russian-Indian Strategic Partnership is undergoing significant changes due to the rapid multipolar processes triggered globally by the Ukrainian Conflict.
Russia and India have a long-standing strategic partnership, which is currently driven by their mutual desire to speed up tri-multipolarity processes during the global systemic transition. The significance of their ties in today's world, particularly their financial ones, is evident, although there are numerous speculations and some facts. Here are three pertinent reports from earlier this week that will be examined in this piece:
* "Russia's Sberbank reports booming business in India despite Western sanctions"
* "India considers Russia’s proposal on 'SWIFT' alternative"
* "Russia built covert trade channel with India, leaks reveal"
Key Developments in Russo-Indian Financial Ties
The first report indicates that Sberbank handled 70% of Russia’s $65 billion trade with India last year, primarily comprising Russian energy exports. The bank has also opened rupee accounts for Russian clients for payment and savings purposes. The number of Indian staff at Sberbank has increased by 150% this year alone, and there are no restrictions on its operations within the country. Transactions are completed within a few hours, and the previous issue of Russia's large rupee stockpile has been resolved due to increasing Indian exports. More real-sector trade is anticipated.
The second report revolves around a Business Line report that cites unnamed sources claiming that India is seriously contemplating the use of Russia's System for Transfer of Financial Messages (SPFS). This system would facilitate the expansion of the use of national currencies in trade. According to the source, "Direct settlements in national currencies will not only help in de-dollarisation but also lead to cheaper, quicker, and more efficient transactions."
The third report is the most controversial, involving supposedly leaked documents that suggest that India has secretly become a significant source of dual-use technologies for Russia, paid for in part using digital financial assets. If accurate, this would make India one of Russia's most crucial partners globally.
Interpreting the Reports
These three reports suggest that the financial aspect of the Russian-Indian Strategic Partnership is evolving rapidly due to the fast-moving multipolar processes triggered by the Ukrainian Conflict. Both nations have been working towards this progress for years, and they are now finally catching up at an impressive pace, indicating their shared interests in this area.
India perceives its support of the Russian economy as not only a friendly gesture that aligns with its interests but also as a way to prevent Russia's potentially disproportionate dependence on China. Russia shares this sentiment, and India has reportedly proven to be more reliable than China regarding dual-use technology.
Given the strength of Russo-Indian financial ties, including speculation that India is defying the US' unilateral restrictions on dual-use technology exports to Russia, there's reason to believe that Russia might make progress on negotiating a gas swap with Iran for supplying India. If this happens, these three nations can boost tri-multipolarity processes by pioneering their own pole of influence that could expand to include Afghanistan, Azerbaijan, and the Central Asian Republics.
Bottom Line
The financial ties between Russia and India are evolving rapidly, driven by shared interests and the changing global landscape. The strength of these ties could potentially reshape the geopolitical landscape, particularly if they lead to a gas swap deal with Iran. What are your thoughts on these developments? Share this article with your friends and discuss the potential implications. Don't forget to sign up for the Daily Briefing, which is delivered every day at 6 pm.
