“Currently, a delegation of Indian exporters is in Russia discussing the supply of soybeans, rice, peas, chickpeas, beans, lentils returning from Russia. Thought.
Russia wants food, hygiene and household goods, auto parts and cars from India.
This request of Russia, which officially headed to Delhi, was reported by the Indian magazine The Times of India.
And this message failed to pique my interest.
While negotiations on increasing purchases from India are ongoing since Western countries have imposed sanctions on Russia, there is increasing insistence from Moscow as it becomes increasingly difficult to find auto parts in Russia due to the closure of foreign manufacturers.
According to The Times of India, Russia is offering Indian automotive parts and automakers to start working in Russia and establish a more active trade in them. The newspaper writes that spare parts exports are still possible, but automakers are unlikely to agree to export cars for fear of secondary sanctions. And this applies not only to global brands operating in India, but also to national brands like Mahindra & Mahindra and Tata Motors as they have international operations as well. Tata also owns the British company Jaguar Land Rover.
The Russian automotive industry is one of the sectors most affected by the military occupation of Ukraine: in 2022, car sales fell by 59%, according to Avtostat. A year and two months have passed since the Russian troops invaded Ukraine, and the stocks of new cars of foreign brands are almost exhausted. The Association of Automobile Dealers of Russia, we are talking about dozens, not even thousands or hundreds of cars for sale, and some brands, such as Renault, have completely disappeared.
The Times of India adds that a delegation of Indian exporters is currently in Russia to discuss the supply of soybeans, rice, peas, chickpeas, beans, lentils and other agricultural products. “The shelves in supermarkets are empty, and even in duty-free shops (at the airport) there is almost nothing but Russian vodka,” said one exporter who had just returned from Russia.
These are not the first such negotiations, but so far they have not led to any special agreement.
One of the main problems is the payment method. The dollar is difficult to use due to sanctions, and when trading in national currencies, exporters say they lose 4% on each transaction. They have proposed to the Ministry of Commerce of India to set a fixed rate of rupees against the ruble for such special transactions and will be announced every two weeks in advance by the Reserve Bank of India.
In other sectors, it is not possible to trade in national currencies due to market scarcity and high exchange rate volatility. As a result, India has not been able to transfer $2 billion to Russia for arms supplies for a year.
Source
Source: Focus
Alfred Hart is an accomplished journalist known for his expert analysis and commentary on global affairs. He currently works as a writer at 24 news breaker, where he provides readers with in-depth coverage of the most pressing issues affecting the world today. With a keen insight and a deep understanding of international politics and economics, Alfred’s writing is a must-read for anyone seeking a deeper understanding of the world we live in.