The officials of Reserve Bank of India (RBI) and Russian central bank are expected to hold a meeting this week to create a regulatory framework that will help sustain trade and banking operations between the two countries, The Economic Times reported on March 30.
The move comes despite a flurry of sanctions against Moscow.
According to the report, a senior official from the Bank of Russia, probably at the level of a deputy governor or general manager, might lead the talks with the RBI officials.
Moneycontrol could not independently verify the report.
The RBI and its Russian counterpart are also likely to work on the creation of a dedicated payment mechanism to facilitate India's energy purchases from Russia, the report said, quoting four people familiar with the developments.
Also Read: How exactly does the West plan to cripple Russia economically through sanctions?
Representatives from Russia’s financial sector may also participate, since the creation of a rupee-rouble exchange channel is likely to feature in the upcoming meeting, the report said.
"The government has given an in-principle green signal for the rupee-rouble trade, and it now needs to be brought under a regulatory framework. This meeting will be first in that direction," one of the people mentioned above told ET.
India’s commerce and external affairs ministries are preparing broad contours of the proposed Indo-Russian collaboration in the context of western sanctions against Russian banks.
"Such a Russian delegation would be coming to India after a gap of more than six months as the situation currently warrants it," said a senior executive associated with the bilateral economic cooperation.
The meeting assumes significance after the West took steps to commercially isolate Moscow in the aftermath of the war in Ukraine.
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