- Russia‘s trade with India nearly doubled to $65 billion in 2023.
- Sberbank, under Western sanctions, successfully operates in India’s financial systems.
- India remains a key importer of Russian oil, strengthening ties with Russia.
Despite facing Western sanctions, Russia’s trade with India has experienced a significant boost, nearly doubling to $65 billion in 2023.
Sberbank’s presence in India has grown with offices in Delhi, Mumbai, and a rapidly expanding IT center in Bangalore. The bank has increased its Indian staff by 150% this year, with plans to continue expanding operations.
Russia Strengthens Economic Ties with India Amid Global Sanctions
Russia has found a strong economic partner in India amid Western sanctions, with bilateral trade reaching $65 billion in 2023. This growth is largely driven by India’s increased imports of Russian oil, as New Delhi has not joined the global sanctions against Moscow. Sberbank, Russia’s largest lender, facilitates up to 70% of Russia’s exports to India and has managed to integrate seamlessly into the Indian financial ecosystem despite Western restrictions.
Sberbank’s operations in India have expanded significantly, with the bank increasing its local staff by 150% and opening an IT hub in Bangalore. The bank’s ability to conduct transactions in Indian rupees has provided an alternative to the U.S. dollar and euro, currencies restricted by sanctions. As a result, Sberbank’s Indian branch continues to operate without any major disruptions, strengthening the economic ties between the two nations.
India has remained a crucial partner for Russia, particularly within the BRICS framework, which includes Brazil, Russia, India, China, and South Africa. This partnership is underpinned by India’s strategic decision not to join Western sanctions against Russia, allowing for smoother trade and financial cooperation between the two nations. The ongoing collaboration underscores the resilience of both countries’ economies amid shifting global dynamics.
As Sberbank explores further opportunities in India, the potential for the rupee to serve as a means of savings in addition to being a payment method is under consideration. This development reflects the bank’s long-term commitment to deepening its presence in the Indian market. With offices in Delhi, Mumbai, and an expanding presence in Bangalore, Sberbank is poised to become a key player in facilitating Russia’s economic pivot toward Asia.
Russia’s growing economic ties with India demonstrate the resilience of both countries in navigating global sanctions. This partnership highlights the strategic importance of their relationship within the BRICS framework and beyond.
“In 2022, there was a significant increase in the interest of Russian businesses in the Indian market because this market serves as an alternative.” – Anatoly Popov, Deputy CEO, Sberbank.
