De-dollarization: Russia’s largest bank easily uses Indian payment systems

But Sberbank – which processes up to 70% of Russian exports to India – has turned to ruble and rupee transactions for trade with India. Popov told Reuters that nine out of 10 transactions involving these currencies last only a few hours.

This is in contrast to transactions involving Chinese banks, which are so scared of secondary US sanctions that many of the larger banks have stopped processing payments with Russia.

Popov told the news agency that business between India and Russia has seen an expansion in 2022 following extensive sanctions over Moscow’s large-scale invasion of Ukraine. The South Asian country has become an “alternative” market for Russia.

Reuters reported that Sberbank has increased its presence in India, expanding its headcount by 150% this year.

While India has become a top buyer of Russian oil, there are fewer Indian products that Russia needs.

Last year, Russia admitted they existed problems with billions of Indian rupees he had made of exports to India, which he was supposed to contain. The amount has declined since Russian firms were able to use the money to pay Indian exporters, Reuters reported last month.