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India is stepping closer to setting up an alternative payments system to maintain its trade with Russia, identifying a potential bank, as a top panel examining the issue recommended prioritising edible oil and fertiliser imports as well as payments owed to India, an official aware of the development has said…. The top interministerial panel has been tasked with scrutinizing the impact of a barrage of economic sanctions imposed by the West on Russia on India’s economy. It is led by economic affairs secretary Ajay Seth and includes the ministries of food and consumer affairs, fertilizers, commerce, external affairs and petroleum....

India and sanctions-hit Russia are exploring the possibility of using China’s yuan as a reference currency to value the rupee-ruble trade mechanism, two Indian government officials aware of the development said. The two countries may also look at a floating rate arrangement as India, the world’s third-largest oil importer, considers buying oil from Russia at a discounted rate to cool inflationary pressures. To boost oil purchase from Russia, India is working to resolve key issues, including the availability of ships, insurance cover for imports and the oil blends, given the configuration of Indian refineries. This assumes importance given the Western...

India is discussing how to set up a rupee-ruble payment mechanism to enable it to trade with Russia, to circumvent the U.S. sanctions regime.India abstained from voting on the March United Nations (UN) General Assembly Resolution demanding an end to Russian offensive in Ukraine (General Assembly resolution demands end to Russian offensive in Ukraine).Since its Independence, India has tried to steer a neutral course between the U.S. and Russia (and previously, the USSR). During the 1950s, India’s first prime minister, Jawaharlal Nehru, was a prime architect behind the Non-Aligned Movement, under which developing countries tried to pursue their national interests...

India is exploring ways to set up a rupee payment mechanism for trade with Russia to soften the blow on New Delhi of Western sanctions imposed on Russia after its invasion of Ukraine, government and banking sources said. Indian officials are concerned that vital supplies of fertilizer from Russia could be disrupted as sanctions intensify, threatening India's vast farm sector.

MUMBAI -- U.S. Treasury Secretary Henry Paulson praised India on Monday for allowing the rupee to be driven by market forces. Answering questions after a speech, Mr. Paulson said the appreciation of the rupee "doesn't seem to be hurting [India's] economic performance any." The rupee has soared to nine-and-a-half year highs this month amid strong investment inflows. But Mr. Paulson said India's economy remains strong and growth is under control. He contrasted India's relatively free-floating currency with the Chinese yuan, which is held in a tight band. Mr. Paulson reiterated the call by the G7 earlier this month for China...