There is virtually no trade happening with Russia at this juncture because the banks are not processing payment documents due to SWIFT sanctions imposed after Putin declared war on Ukraine.
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There is USD 400-500 million worth of dues that are pending and trade is thus stuck as further exports cannot take place. However, according to people in the know, a very minuscule trade in diamonds and pharmaceuticals is happening.
The Indian banks are reluctant to process payments because of the sanctions on Russian banks and also a lack of clarity on how things will pan out in the future.
CNBC-TV18 has learnt from sources in the government that a rupee ruble mechanism is under consideration. Exporters and several traders have sent a request to the government to allow trade using this mechanism; it was used in the past as well when there have been similar issues, but at the same time, inputs have been sought from the Ministry of Commerce, the Ministry of External Affairs.
The final call on the rupee ruble mechanism would be taken by the finance ministry in consultation with the Reserve Bank of India (RBI). So waiting for clarity on that.
Watch the accompanying video of CNBC-TV18’s Parikshit Luthra for more