{"id":237422,"date":"2023-04-11T20:58:23","date_gmt":"2023-04-11T15:28:23","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=237422"},"modified":"2023-04-11T20:58:23","modified_gmt":"2023-04-11T15:28:23","slug":"as-the-ukraine-war-grinds-on-russia-india-seek-ways-to-keep-defence-trade-afloat","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/as-the-ukraine-war-grinds-on-russia-india-seek-ways-to-keep-defence-trade-afloat\/","title":{"rendered":"As the Ukraine war grinds on, Russia, India seek ways to keep defence trade afloat"},"content":{"rendered":"\n

Source<\/strong>: The post is based on the article\u00a0\u201cAs the Ukraine war grinds on, Russia, India seek ways to keep defence trade afloat<\/strong>\u201d published in The Hindu <\/strong>on\u00a011th<\/sup> April 2023<\/strong>.<\/p>\n

Syllabus: GS 2 \u2013 International Relations<\/strong><\/p>\n

Relevance: <\/strong>concerns associated with import payments to Russia<\/strong><\/p>\n

News<\/strong>: Russia is currently facing problems with India in resolving payment problems for its defence exports.<\/p>\n

What are some of the defence systems being exported by Russia to India?<\/strong><\/h2>\n

Russia is now carrying out numerous large contracts with India, including the S-400 systems and two Project 11356 frigates.<\/strong><\/p>\n

The other deals include procurement of additional and modernisation of existing Sukhoi Su-30 MKI and upgrade of MIG-29s<\/strong>.<\/p>\n

Moreover, India\u2019s total imports from Russia rose by five times from $8.5 billion in April 2022 to $41.6 billion in February 2023<\/strong>, driven mainly by oil supplies.<\/p>\n

As per Stockholm International Peace Research Institute (SIPRI<\/strong>), Russia\u2019s share of arms imports to India fell from 69% in 2012-17 to 46% in 2017-21<\/strong>, while Russia remained the key defense supplier to India.<\/p>\n

However, concern lies with the payment of the imports.<\/p>\n

What are the concerns with payment? <\/strong><\/h2>\n

Currently, Russian banks create vostro accounts<\/strong><\/a> with authorized dealer banks in India and pay in rupees, although Russia wants to pay in rubles.<\/strong><\/p>\n

However, the problems with India in adopting ruble payment are \u2013 a)<\/strong> the concerns of the Indian financial sector which is overall slowly adopting new mechanisms, and b)<\/strong> lack of trust on the Russian ruble.<\/p>\n

After suffering a major shock last year, India is doubtful about the ruble<\/strong>, and there is an understanding that it is almost impossible to evaluate it correctly.<\/p>\n

Therefore, the India has no particular interest in trading in the Russian currency and thus, India relies on payments in the rupee.<\/p>\n

What is the way ahead?<\/strong><\/h2>\n

Russia is upgrading its weapons after testing them in the real time war with Ukraine. This gives Russia a great advantage in terms of defense exports.<\/p>\n

Therefore, the issue of payments needs to be resolved in the upcoming meeting between the two nations.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on the article\u00a0\u201cAs the Ukraine war grinds on, Russia, India seek ways to keep defence trade afloat\u201d published in The Hindu on\u00a011th April 2023. Syllabus: GS 2 \u2013 International Relations Relevance: concerns associated with import payments to Russia News: Russia is currently facing problems with India in resolving payment problems… Continue reading As the Ukraine war grinds on, Russia, India seek ways to keep defence trade afloat<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10498],"class_list":["post-237422","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704731068},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/237422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=237422"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/237422\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=237422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=237422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=237422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}