Russia’s Sberbank says India business booming despite western sanctions

Russia’s trade with India is booming and bilateral payments are proceeding smoothly without the glitches that have been hampering trade with other countries, Anatoly Popov, deputy CEO of Russia’s largest lender, Sberbank, said.

Sberbank handles payments for up to 70% of all Russian exports to India. Russia’s trade with India nearly doubled to $65 billion in 2023, with the south Asian country becoming a major importer of Russian oil after the imposition of Western sanctions on Moscow in 2022 over the conflict in Ukraine.

“In 2022, there was a significant increase in the interest of Russian businesses in the Indian market because this market serves as an alternative,” Popov told Reuters in an interview ahead of the Eastern Economic Forum, an economic conference targeting Russia’s Asian partners.

“Today, we are opening accounts in rupees for Russian clients as well. We do not rule out the possibility that, in addition to being a means of payment, the rupee may also become a means of savings,” he added.

Sberbank’s branch in India has offices in Delhi and Mumbai, as well as an IT centre in Bangalore. The number of staff in its Indian offices increased by 150% this year, having said in April they wanted to hire 300 IT personnel for the hub in Bangalore.

Sberbank is under Western sanctions and therefore cannot make transactions in US dollars and euros or use the SWIFT system for international transfers. However, Popov said the bank had not experienced any problems in India.

“Sberbank is a full participant in all Indian payment and interbank systems. There are no restrictions on its operations,” Popov said. India has not joined any anti-Russian sanctions and maintains friendly ties with Russia. — Reuters