Russian ambassador claims that Indian banks fear US restrictions
Date
11/2/2024 9:42:54 AM
(MENAFN) Indian banks are exercising caution in their dealings with Russian clients due to apprehensions about potential secondary sanctions from the United States, according to Denis Alipov, Russia’s ambassador to India. Speaking to reporters on Monday, Alipov highlighted the meticulous nature of the U.S. government's monitoring of trade transactions between Russia and India, which has contributed to the banks' reluctance to proceed with such business.
The ambassador noted that Indian financial institutions with ties to the U.S. market are particularly wary of incurring secondary sanctions. This concern intensified in June when the U.S. expanded its sanctions list to include major Russian banks, with the U.S. Treasury Department warning that foreign banks continuing to engage with these entities could face exclusion from the broader U.S. financial system.
To mitigate these risks, Alipov revealed that Moscow and New Delhi are actively working on establishing a direct trade payment system utilizing rubles and rupees. Senior ministers from both countries are scheduled to convene in November to explore strategies for enhancing bilateral trade, which may include discussions on this payment system.
Alipov expressed optimism that Indian banking communities would gradually recognize the safety and legitimacy of engaging in trade with various countries without fearing coercive measures from the U.S. He underscored the necessity for nations, particularly within BRICS (Brazil, Russia, India, China, and South Africa) and other developing countries, to have an equitable voice in global financial discussions.
The ambassador's remarks reflect a broader sentiment among BRICS nations, advocating for a more balanced approach to international financial relations that takes into account the interests of the Global South. As these countries seek to bolster trade ties and establish independent payment systems, the outcome of their upcoming meetings could significantly influence the dynamics of their economic relationships moving forward.
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