https://sputnikglobe.com/20220420/here-is-how-india-continues-to-trade-with-russia-in-energy-and-more-despite-us-warnings-1094912185.html
Here is How India Continues to Trade With Russia in Energy and More Despite US Warnings
Here is How India Continues to Trade With Russia in Energy and More Despite US Warnings
Sputnik International
The US has warned India of "significant and long-term" consequences if it chooses "more explicit strategic alignment" with Moscow. While the US and some of its... 20.04.2022, Sputnik International
2022-04-20T14:20+0000
2022-04-20T14:20+0000
2022-11-15T14:22+0000
russia
crude oil
caatsa
us
sanction
aeroflot
subrahmanyam jaishankar
sergey lavrov
s-400
frigates
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India and Russia are engaged in finding a solution to payment issues that arose after the West sanctioned several Russian financial institutions in response to Moscow's special military operation in Ukraine.On Tuesday, Aleksei Vladimirovich Surovtsev, the Consul General of Russia in Mumbai, said negotiations between officials of the two countries are underway to finalise the payment mechanism for trade settlement.Although Indian traders settled some of the payments in Euros and started a process to receive Yuan against exports to Russia, New Delhi believes the Rupee-Ruble mechanism would stabilise the economic transactions with Russia.The two countries have set a target to achieve $30 billion in bilateral trade by 2025 from $10 billion.The reports and government statements suggest India has not strayed from joint commitment, which is reflected in continuing trade with Russia.Increasing the Fertiliser QuotaRussia has increased the export quota of fertiliser for India by 700,000 tonnes to ease the supply crunch in the Indian market ahead of the growing season. On Tuesday, India's Fertilizer Secretary Rajesh Kumar Chaturvedi said Russia is honouring fertiliser agreements. This development minimises concerns earlier expressed in certain quarters regarding potential supply disruptions due to the ongoing Ukraine conflict.Since 24 February, when Moscow began a special military operation to "denazify and demilitarise" Ukraine, India has received fertiliser shipments of 360,000 metric tonnes from Russia.Resuming Exports of Food and Medical ItemsIndian businesses have resumed exports of tea, rice, fruit, coffee, seafood and confectionery goods, as well as medical equipment to Russia after a brief halt over insurance and transportation issues. The exports begin as some of the shipping lines have started sailing to different ports, like those in Georgia.The Federation of Indian Exporters Organisation (FIEO) said that payments for the the export of agricultural items are being carried out through Sberbank of Russia as it has a presence in Mumbai. "If the importer wants to import some product from Russia, he is paying that amount in Indian rupees to the Russian bank here through his own bank and then Russian bank is remitting roubles to the supplier in Russia," Ajay Sahai, Director General of FIEO, said on Tuesday.India expects a significant jump in exports of agri-products such as tea, coffee, spices, and pharma products as it currently has less than a 10 percent stake in Russia's domestic market.The two countries have also started using those banks for transactions that are not exposed to the West or are not sanctioned.The US has imposed sanctions on 10 Russian banks out of the 500-odd banks that are operational.India has also started replacing Ukrainian sunflower oil with Russian sunflower oil, as Indian dealers have contracted at least 45,000 tonnes for April delivery.Long Term Oil Deal Last week, when Indian Oil— the country's largest refiners, removed Russian Urals from its public tender, a certain section of Indian society linked it with US threats.In a virtual meeting on 10 April, Joe Biden had told Indian Prime Minister Narendra Modi that buying Russian oil was not in India's interest.However, this week, clarity comes as the media reports that India's oil companies are looking to secure long-term deals with Russia at a discounted rate.Bloomberg reported on Wednesday that Indian refiners have purchased "everything from flagship Urals that ships from ports in the west, to a rare cargo of Eastern Siberia Pacific Ocean, typically favoured by China." India has purchased over 15 million barrels of oil from Russia since the special military operation began in Ukraine. The Indian side has conveyed to Washington that it would not stop buying Russian crude.Servicing Russian Airlines' PlanesThe US Commerce Department said that planes operating between Moscow and cities in China and India violate sanctions restricting exports of American technology.The sanctions defined in US export controls curbs refuelling, repairing, or servicing these planes, which are not authorised for operation by the Bureau of Industry and Security (BIS).Boeing and Airbus had stopped sending spare parts for civilian planes, prompting Russian airlines to look at a variety of Asian countries, including India, to source these items after China reportedly declined Russia's request.“We will be looking [for opportunities] in other countries. Perhaps, via our partners, Turkey, or via India. Every company will reach an agreement on its own while we [Rosaviatsiya] will merely help legalise these parts,” Valery Kudinov, an official from Russia’s air transport agency Rosaviatsiya, had said on 10 March.Over 300 Indian firms produced aeronautical spare parts for Western-origin commercial aircraft.CAATSA is an American Law: JaishankarIn a solid rebuttal to the US, which has threatened India on several occasions with CAATSA (Countering America's Adversaries Through Sanctions Act), Indian foreign minister S. Jaishankar on 13 April, said that it is a US law and it's for the American administration to decide on it.Russia has supplied training equipment and a simulator for the second S-400 unit earlier this month and assured India of delivering Talwar-class stealth frigates on schedule.Speaking to an Indian news channel, India Today, on Tuesday, Russian foreign minister Sergei Lavrov said "on defence, we can provide anything India wants".A Stimson Centre report estimated that 90 percent of defence equipment, weapons, and platforms presently used by the Indian Army had originated from Russia.
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Here is How India Continues to Trade With Russia in Energy and More Despite US Warnings
14:20 GMT 20.04.2022 (Updated: 14:22 GMT 15.11.2022) The US has warned India of "significant and long-term" consequences if it chooses "more explicit strategic alignment" with Moscow. While the US and some of its allies have imposed severe economic sanctions, including the freezing of central bank assets, India has prioritised its national interests and continued to trade with Russia.
India and Russia are engaged in finding a solution to payment issues that arose after the West sanctioned several Russian financial institutions in response to Moscow's special military operation in Ukraine.
On Tuesday, Aleksei Vladimirovich Surovtsev, the Consul General of Russia in Mumbai, said negotiations between officials of the two countries are underway to finalise the payment mechanism for trade settlement.
Although Indian traders settled some of the
payments in Euros and started a process to receive Yuan against exports to Russia, New Delhi believes the Rupee-Ruble mechanism would stabilise the economic transactions with Russia.
The two countries have set a target to achieve $30 billion in bilateral trade by 2025 from $10 billion.
The reports and government statements suggest India has not strayed from joint commitment, which is reflected in continuing trade with Russia.
Increasing the Fertiliser Quota
Russia has increased the export quota of fertiliser for India by 700,000 tonnes to ease the supply crunch in the Indian market ahead of the growing season.
On Tuesday, India's Fertilizer Secretary Rajesh Kumar Chaturvedi said Russia is honouring fertiliser agreements. This development minimises concerns earlier expressed in certain quarters regarding potential supply disruptions due to the ongoing Ukraine conflict.
"In December last year, we entered into a C2C (corporation to corporation) supply arrangement with Russian companies for 250,000 Metric tonnes DAP/NPK every year for three years. They are honouring that and we have been receiving supply continuously," Chaturvedi said.
Since 24 February, when Moscow began a special military operation to "denazify and demilitarise" Ukraine, India has received fertiliser shipments of 360,000 metric tonnes from Russia.
Resuming Exports of Food and Medical Items
Indian businesses have resumed exports of tea, rice, fruit, coffee, seafood and confectionery goods, as well as medical equipment to Russia after a brief halt over
insurance and transportation issues. The exports begin as some of the shipping lines have started sailing to different ports, like those in Georgia.
The Federation of Indian Exporters Organisation (FIEO) said that payments for the the export of agricultural items are being carried out through Sberbank of Russia as it has a presence in Mumbai.
"If the importer wants to import some product from Russia, he is paying that amount in Indian rupees to the Russian bank here through his own bank and then Russian bank is remitting roubles to the supplier in Russia," Ajay Sahai, Director General of FIEO, said on Tuesday.
India expects a significant
jump in exports of agri-products such as tea, coffee, spices, and pharma products as it currently has less than a 10 percent stake in Russia's domestic market.
The two countries have also started using those banks for transactions that are not exposed to the West or are not sanctioned.
The US has imposed sanctions on 10 Russian banks out of the 500-odd banks that are operational.
India has also started replacing Ukrainian sunflower oil with Russian sunflower oil, as Indian dealers have contracted at least 45,000 tonnes for April delivery.
Last week, when Indian Oil— the country's largest refiners, removed Russian Urals from its public tender, a certain section of Indian society linked it with US threats.
In a virtual meeting on 10 April, Joe Biden had told Indian Prime Minister Narendra Modi that buying
Russian oil was not in India's interest.
However, this week, clarity comes as the media reports that India's oil companies are looking to secure long-term deals with Russia at a discounted rate.
Bloomberg reported on Wednesday that Indian refiners have purchased "everything from flagship Urals that ships from ports in the west, to a rare cargo of Eastern Siberia Pacific Ocean, typically favoured by China."
India has purchased over 15 million barrels of oil from Russia since the special military operation began in Ukraine. The Indian side has conveyed to Washington that it would not stop buying Russian crude.
Servicing Russian Airlines' Planes
The US Commerce Department said that planes operating between Moscow and cities in China and India violate sanctions restricting exports of American technology.
The sanctions defined in US export controls curbs refuelling, repairing, or servicing these planes, which are not authorised for operation by the Bureau of Industry and Security (BIS).
"Anyone who seeks to enable their aggression or flout our export controls, does so at their own peril," Gina M. Raimondo, Secretary of Commerce, said.
Boeing and Airbus had
stopped sending spare parts for civilian planes, prompting Russian airlines to look at a variety of Asian countries, including India, to source these items after China reportedly declined Russia's request.
“We will be looking [for opportunities] in other countries. Perhaps, via our partners, Turkey, or via India. Every company will reach an agreement on its own while we [Rosaviatsiya] will merely help legalise these parts,” Valery Kudinov, an official from Russia’s air transport agency Rosaviatsiya, had said on 10 March.
Over 300 Indian firms produced aeronautical spare parts for Western-origin commercial aircraft.
CAATSA is an American Law: Jaishankar
In a solid rebuttal to the US, which has threatened India on several occasions with CAATSA (Countering America's Adversaries Through Sanctions Act), Indian foreign minister S. Jaishankar on 13 April, said that it is a US law and it's for the American administration to decide on it.
"It is their legislation and whatever has to be done has to be done by them," Jaishankar said, indicating New Delhi would not come under pressure from the US over defence ties with Russia.
Russia has supplied training equipment and a simulator for the second S-400 unit earlier this month and assured India of delivering
Talwar-class stealth frigates on schedule.
Speaking to an Indian news channel, India Today, on Tuesday, Russian foreign minister Sergei Lavrov said "on defence, we can provide anything India wants".
A Stimson Centre report estimated that 90 percent of defence equipment, weapons, and platforms presently used by the Indian Army had originated from Russia.
