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India Pushes Russia on Trade Barriers for $50B Rouble Funds
4 Jan
Summary
- India seeks to ease trade barriers for electronics and engineering goods.
- Russia holds $50-55 billion in roubles due to India's trade deficit.
- Trade talks precede agreement with Eurasian Economic Union next month.
India is actively engaged in high-level discussions with Russia to dismantle trade barriers that are hindering the export of Indian goods. The primary objective is to unlock the estimated $50-55 billion in roubles currently held in Russian banks, a consequence of India's substantial trade deficit with Russia, largely fueled by crude oil imports. Current challenges include complex Russian and Eurasian standards for engineering goods and specific software requirements for electronics.
Exporters report difficulties in meeting local language compliance and navigating differing standards, which are impeding the flow of products. Despite these obstacles, Russian retail chains have expressed interest in importing Indian food and other consumer goods. The trade imbalance is expected to narrow as some Russian oil companies face sanctions and Indian refiners adjust their purchasing strategies.
These crucial trade negotiations are taking place ahead of a proposed trade agreement with the Eurasian Economic Union, encompassing Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan, scheduled for discussion next month. Both nations recognize the need for a resolution to facilitate smoother trade relations.
