Send by email

your name: email to: message:
Username: Email: Password: Confirm Password:
Login with
Confirming registration ...

Edit your profile:

Country: Town: State:
Gender: Birthday:
Email: Web:
How do you describe yourself:
Password: New password: Repite password:

Wednesday, 20 June 2018

Rupees and rubles vs. dollars

Por Olivia Rosario Rodríguez

The possibility of paying defense contracts between both nations in their respective national currencies is being studied at the moment, with the firm objective of avoiding the sanctions that the government of the American president Donald Trump imposed on Russia. The information was released by the newspaper The Economic Times in an article in which high Russian officials are quoted.

The transfer of rupees and dollars is likely to be the solution to the problem generated by the US sanctions that have left stagnant million dollar figures for the payment of defense contracts between Moscow and New Delhi. These are some of the information offered by international media about the results derived from several rounds of consultations carried out by high officials of both Asian nations.

It happens that the financial sanctions of the United States seriously affected the arms trade between India and Russia, which until now are donce in US dollars. US restrictions have left more than $ 2 billion for the defense contracts of Moscow and New Delhi.

Given this situation last May, Russian President Vladimir Putin referred to the possibility that Moscow could carry out transactions with its foreign economic partners in its national currency.

It is worth noting that Russia is one of the main partners of India in the field of defense: more than 70% of the weapons and military equipment of the Navy, the Army and the Indian Air Forces are of Russian or Soviet manufacture. However, relations between Moscow and the US worsened as a result of the situation in Ukraine and the reincorporation of Crimea to Russia in 2014. Since then, the United States, the European Union and other countries approved several sanctions packages against Russia, which has affected its business relationship with India.

In addition, last April, Washington extended its financial restrictions to 38 citizens and public and private companies in Russia, including the Rosoboronexport arms exporter, the aluminum giant Rusal, the Russian Machines industrial conglomerates, the Basic Element, the automotive company GAZ and others.

US authorities also imposed restrictions on Moscow on the grounds of alleged interference in the 2016 presidential elections and, although in April the Congress acknowledged in a report the witnesses interviewed had no evidence of Russia's interference in the electoral process, the Committee of Intelligence of the House of Representatives continues insisting, although without evidence, that there was interference in those elections.