In the face of ongoing Western sanctions, India and Russia have intensified their economic collaboration, focusing on local currency settlements and alternative payment systems to reduce reliance on the US dollar.
Bilateral Trade in Local Currencies
Historically, India and Russia have engaged in trade using their national currencies. This practice has been revitalized in recent years, with both nations striving to minimize dollar dependence. In March 2022, they established a Rupee-Ruble Trade Arrangement, enabling India to purchase Russian oil using currencies like the UAE dirham and the ruble.
The Reserve Bank of India (RBI) has also advocated for direct rupee-dirham settlements, particularly with the UAE, to further diminish dollar reliance.
Current Exchange Rate: INR to RUB
As of March 9, 2025, the exchange rate stands at:
- 1 Indian Rupee (INR) = 1.02 Russian Rubles (RUB)
This rate reflects the ongoing efforts to stabilize and strengthen bilateral currency exchange mechanisms.
Impact on Indian Students in Russia
The geopolitical climate and ensuing sanctions have posed challenges for Indian students in Russia. However, both governments have implemented measures to mitigate these issues:
Financial Transactions: The integration of India’s Unified Payments Interface (UPI) with Russia’s Faster Payments System (FPS) has facilitated smoother financial operations for students, allowing seamless payments and fund transfers.
Vocational Training and Employment: In 2024, discussions between India and Russia led to initiatives aimed at preparing Indian workers through Russian vocational training programs, enhancing employment prospects within Russian companies.
Banking Services: Russian banks, such as Sberbank, have expanded their services in India, offering rupee-denominated accounts and loans at competitive rates. This expansion has ensured that Indian students and businesses can conduct transactions without significant disruptions.
Despite the complexities introduced by sanctions, the resilience and adaptability of Indian students in Russia are evident. The collaborative efforts between the two nations continue to provide support, ensuring that educational and daily life experiences remain as unaffected as possible.
Conclusion
The strengthened economic ties between India and Russia, underscored by local currency trade and supportive measures for expatriates, highlight a strategic partnership resilient to global challenges. As both nations navigate the evolving geopolitical landscape, their mutual initiatives aim to foster stability and growth.
