Russia and India have reported that over 90 percent of their bilateral trade payments are now conducted using their respective national currencies—the Russian rouble and the Indian rupee. This milestone, revealed by First Deputy Prime Minister of Russia Denis Manturov at the meeting of the Russian-Indian Intergovernmental Commission, marks a profound shift away from reliance on traditional international currencies such as the U.S. dollar and euro in their commercial dealings, underscoring a broader effort towards de-dollarization and enhanced financial sovereignty between the two nations.
“Providing for seamless mutual payments is a no less important task, especially in current realities. We have already managed to transfer more than 90 percent of payments between Russia and India to national currencies,” Manturov said.
The Russian Embassy highlighted this development as a crucial evolution in the financial dynamics of India-Russia trade relations. By using the rupee and rouble directly in payment settlements, both countries have drastically reduced their dependency on third-party currencies, which traditionally add layers of conversion costs and complexity. This change not only helps in potentially lowering transaction expenses but also strengthens bilateral economic ties by fostering a more direct, currency-based linkage between the trade partners.
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Growth in trade turnover
Trade turnover between Russia and India has seen remarkable growth over recent years, nearly quintupling from approximately $13 billion in 2021 to $68 billion in 2024-25. India has emerged as one of Russia’s top three foreign trading partners, reflecting a deepening commercial relationship. This surge in volume has made the use of national currencies even more practical and desirable for streamlining payments and reducing exposure to currency fluctuations inherent in global currencies dominated by Western financial systems.
This strategy aligns with a broader global trend among some countries to move away from the dominance of the U.S. dollar, often termed de-dollarization. By shifting to national currency payments, Russia and India are paving the way for the adoption and integration of alternative payment systems that circumvent Western-controlled financial infrastructures. These efforts also come at a time when Russia faces comprehensive economic sanctions from Western countries, making the use of national currencies a tactical as well as economic imperative.
Challenges in currency management
However, while there are clear benefits to rupee-rouble trade settlements, challenges remain. Managing exchange rate volatility between the two currencies requires sophisticated financial instruments and risk management strategies. Both countries are working to align their banking systems and payment infrastructures to ensure seamless transactions and rapid settlement times—often within two hours, mirroring domestic payment speeds. Russia’s largest bank, Sber, for instance, has been actively supporting rupee transactions, opening rupee deposit accounts, and offering rupee-denominated loans to Russian businesses, signaling institutional backing for this financial shift.
The growing use of the rupee in Russia exemplifies how bilateral arrangements can build economic resilience. Sberbank reports that it processes up to 70 percent of Russia’s exports to India in rupees, evidencing a robust operational framework behind this currency cooperation. The bank’s expansion in India with offices in Delhi, Mumbai, and an IT center in Bengaluru further illustrates the practical commitment to this financial integration.
The increased use of national currencies in bilateral trade holds broader geopolitical implications as well. For India, this move is part of a strategic effort to diversify its international trade partners and reduce vulnerabilities linked to Western sanctions and tariff pressures, especially amid complex relations with the United States. Russia, on its part, benefits from a reliable trade partner willing to engage outside the global dollar-centric system while expanding its access to the Indian market—in sectors ranging from energy exports like oil and LNG to technology and nuclear cooperation.
Looking ahead, India and Russia plan to convene high-level summits and inter-governmental commissions to further solidify financial cooperation, including enhanced alignment of banking card systems and interbank networks. These developments aim to create a barrier-free financial environment that nurtures bilateral trade growth and economic partnership.
