© Stocksak. FILE PHOTO – The logo of VTB Bank can be seen at the St. Petersburg International Economic Forum, (SPIEF), in Saint Petersburg, Russia, June 15, 2022. REUTERS/Maxim Shemetov
MOSCOW (Stocksak), Russia’s No.2 lender VTB, announced Wednesday that it has opened a “vostro” account at India’s branch to allow for more active use of Indian rupees when paying under import and export agreements between India and Russia.
It follows a similar move from Russia’s dominant lender Sberbank. On Monday, it announced that it was offering clients “vostro” accounts to rupees. This was to facilitate clients’ rupee-denominated trade transaction which are increasing due west sanctions.
Both state-run banks have been granted permission to open vostro account – which is a local correspondent bank that holds for a foreign bank – from the Reserve Bank of India. This was in response to an earlier attempt to facilitate international trade in rupees.
This measure was viewed as aiding business ties to Russia in the event of more stringent Western sanctions against Moscow.
Moscow has asked that buyers of its commodities use roubles and other currencies to pay for its goods, rather than using the dollar or euro as its usual prices, following sanctions imposed by the United States and its allies.
Valeriy Lukyanenko (VTB’s deputy president) stated in a statement that “Today, one the most important state tasks it is the development of settlements in national currencies with a purpose of strengthening trade and economic relations.”