 "Russian firms buy $4 billion worth of India-made arms, pay in Indian rupee")
Russian firms buy $4 billion worth of India-made arms, pay in Indian rupee
Till October, Russian exporters held about $8 billion in Vostro accounts. Due to a lack of investment opportunities in India, the money held in the Vostro accounts of Russian exporters remained unspent read more
Exporters in Russia, who started trading with India using Indian rupees, have recently spent nearly $4 billion to buy India-made defence equipment and armaments, among other imports and Indian securities. This amount come from funds which were lying idle in their Vostro accounts.
Till October, Russian exporters held about $8 billion in Vostro accounts. These accounts were set up to facilitate trade between Russia and India, using Indian rupees and are managed by a domestic bank on behalf of a foreign bank.
As per a report by the Mint, due to a lack of investment opportunities in India, the money held in the Vostro accounts of Russian exporters remained unspent.
In a mere six months, they used only about 50 per cent of these funds, the report quoted two people aware of the matter, who declined to be identified.
