Indian exporters facing payment delays on shipments to Russia

Indian exporters are facing mounting payment delays on shipments to Russia as sanctions widen and banks grow wary of handling transactions, prompting calls for a direct rupee–ruble exchange mechanism. The rupee-ruble trade mechanism has not worked smoothly. Some multinational banks of Indian origin are reportedly not accepting payments from Russia and not issuing e-BRCs as they are concerned about losing business in North America and Europe due to sanctions on Russia, the Engineering Export Promotion Council (EEPC) highlighted at the Board of Trade (BoT) meeting. EEPC Chairman Mr Pankaj Chadha said there is a need to establish a robust and reliable direct rupee-ruble exchange mechanism for settling financial transactions between the two countries. This can be announced monthly, which will help the exporting community do business with Russia, as per a report.

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