India and Russia have agreed to continue advancing their long-term effort to expand bilateral trade using their own national currencies, signalling a shared push to reduce reliance on the U.S. dollar in cross-border transactions. The decision was reaffirmed during recent high-level discussions between officials from both countries, who described the talks as “constructive and forward-looking.”
The move comes as Moscow remains under extensive Western financial sanctions and is seeking stable, alternative payment channels with key partners. New Delhi, which has maintained steady economic ties with Russia despite global pressures, has also expressed interest in promoting settlement mechanisms that make trade smoother and less vulnerable to external disruptions.
Officials on both sides say the discussions covered improving banking connectivity, expanding the use of the rupee–ruble framework, and exploring mechanisms that can support larger volumes of energy, defence, and commodity transactions. While technical challenges remain — including balancing trade flows and managing currency convertibility — both countries have reiterated that the shift toward national currency trade is a strategic priority.
India’s rising energy imports from Russia, along with cooperation in nuclear power, fertilisers, machinery, and defence equipment, have made bilateral trade reach record levels in recent years. However, the trade imbalance continues to be a key concern for New Delhi, which is pushing for diversified exports and smoother payment infrastructure.
For Moscow, the arrangement provides a critical economic lifeline amid sanctions, while also helping deepen ties with a major Asian economy. Analysts say the continued commitment from both governments shows their willingness to adapt to evolving geopolitical and financial landscapes.
More detailed frameworks are expected to be announced as technical negotiations progress.