Sberbank, the biggest bank in Russia, has been trying to make trade between India and Russia easier by using their own currencies instead of the US dollar. However, Indian financial regulators are not very keen on approving Sberbank's plans, according to a recent report by the Indian Express.
One of the main reasons for the hesitation is the Indian government’s credit risk insurance company, ECGC Ltd. This organization has labeled Russia as a "high-risk" country. This rating affects how Indian regulators make decisions about Sberbank's proposals. Because of this, the Indian Securities and Exchange Board has restricted Sberbank’s foreign investor license. This means Sberbank can only trade in oil and natural gas derivatives, limiting its business opportunities.
Sberbank also wanted to export Russian gold bars to India and sell them to jewelers, allowing transactions in Indian rupees or Russian rubles. However, in March, the Reserve Bank of India turned down this request due t...
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