Russia-India Trade Gets a Rupee-Rouble Boost as 96% Settlements Shift to Local Currencies
What Happened
Russia and India have developed a payments infrastructure that now enables 96% of bilateral trade to be settled in rupees and roubles, according to a senior Russian banker. Bilateral trade reached a record $70 billion in 2024, driven largely by India's imports of discounted Russian oil, and has rebounded in 2026 after a slowdown in 2025. Russian and Indian banks have played a key role in supporting the local-currency trade mechanism.
Key Takeaways
The growing use of local currencies reduces dependence on the US dollar, lowers transaction costs, and helps shield trade from sanctions-related disruptions. For India, a more robust rupee-based settlement system could strengthen its push to internationalise the rupee and support smoother trade flows with key energy suppliers such as Russia.