Sberbank says it is successfully processing payments and transactions to India
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Loading... - Trude Arnold
- 03 Sep 2024
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Sberbank, Russia's largest lender, has confirmed that it is successfully processing payments with India despite facing Western sanctions. Anatoly Popov, Sberbank's deputy CEO, stated that the bank is fully integrated into Indian payment and interbank systems, with no restrictions on its operations.
The bank, which handles up to 70% of Russian exports to India, has shifted to conducting transactions in rubles and rupees following the sanctions. These sanctions, imposed by the US and the European Commission, prevent Sberbank from using the US dollar, the euro, and the SWIFT bank messaging network. However, Popov noted that transactions in rubles and rupees are completed quickly, with nine out of ten transactions taking just a few hours.
This contrasts with the situation in China, where many major banks have ceased processing payments with Russia due to fears of US secondary sanctions. Despite these challenges, Sberbank's business with India has flourished, particularly after Western sanctions intensified following Russia's invasion of Ukraine in 2022. The bank has responded by increasing its workforce in India by 150% this year.
While India has emerged as a significant buyer of Russian oil, Russia has encountered challenges in finding Indian products it requires. Last year, Russia acknowledged difficulties related to large amounts of Indian rupees accumulated from exports, which it needed to manage effectively.
