Russian money stuck in India will be offered a new use

India intends to expand the list of assets in which funds of foreign investors stuck in rupee accounts in local banks can be invested. This will allow Russian companies to hold funds from oil sales not only in government bonds and treasury bills, writes “Kommersant”.

According to local media reports, corporate bonds will be included in the list; a months-long discussion on this issue has been successfully completed. Rustam Mirzabalayev, an expert in the treasury and market risks department of Trust Technologies, pointed out that corporate bonds have a higher yield, which means it may be more profitable to hold funds there.

At the same time, another interlocutor of the publication in the financial market noted that the liquidity of government securities is higher, and if you get involved with the corporate sector, you will have to take on additional risks, which not everyone is ready to do. In his opinion, with the help of such a measure, the Indian authorities are rather trying to liberalize foreign exchange regulations.

In turn, the head of the practice of sanctions law and compliance at KIAP AB Denis Primakov noted that the proposed changes will not solve the main problem of Russian companies. If previously it was offered to withdraw funds from accounts through Indian government securities, now it is offered through private ones. However, both of these do not allow you to receive real money; in any case, this is a flow of funds from one asset to another within India.

In September, the Minister of Foreign Affairs Russia Sergey Lavrov confirmed, that in India “many billions of rupees have accumulated, which have not yet found their application,” and the Indian authorities want the Russians to primarily invest in domestic production. At the same time New Delhi made it clear that he did not want to compromise, in particular refuses pay for oil in Chinese yuan.

Music News First

Music News First is a Articles Publish Website. We publish Music News Articles Around the World.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button