(Bloomberg) -- Indian banks are wary of facilitating trade with Russian firms to avoid falling afoul of US sanctions, said Denis Alipov, Moscow’s envoy to New Delhi.
Banks with exposure to the US are “concerned about secondary US sanctions,” Alipov told reporters in New Delhi on Monday. “It is necessary for Russia, China, India, South Africa and other BRICS members and vast majority of the world to have an equal say pertaining to global economic issues.”
The US and its allies slapped sanctions on Russia after it invaded Ukraine in 2022. India does not follow unilateral measures but individual entities can still be barred from doing business in the US for violating sanctions.
Prime Minister Narendra Modi is trying to balance relations between Russia and the US. The South Asian country buys cheap oil from Moscow, while trying to access investment and cutting-edge technology from Washington.
Bilateral trade between India and Russia peaked in the financial year ending March 2024, touching $65.70 billion largely because of the former’s purchase of discounted crude. India’s exports stood at $4.26 billion, according to government data. The imbalance has added to the urgency to find ways to increase trade between the two countries.
The envoy’s remarks come as senior ministers of the two countries prepare to meet in November to discuss ties and also measures to increase trade. “We are hopeful understanding among Indian banking community will grow,” Alipov said.
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