UCO and Yes Bank have put in place arrangements with two Russian counterparts as India seeks to step up trade with the sanctioned nation.
UCO Bank has partnered with Gazprom Bank, while Yes Bank has also formed an arrangement with Russia's Petersburg Social Commercial Bank (PSCB).
According to media reports, both of these institutions will get India closer to conducting business with Russia through this deal. It is to be mentioned that after the attack on Ukraine, various nations, including the United States, put economic sanctions on Russia. However, India’s trading connections with Russia have not changed significantly.
The deal between UCO Bank and Gazprom Bank comes as the Reserve Bank of India implements a system to facilitate international payments through special Vostro accounts. In the absence of such standard procedures, overseas payments were made in Euros or other foreign currencies. These primarily occur through Gulf nations, whose exports from India have been harmed.
Reports also say that due to all of Russia’s economic restrictions, Indian exporters are finding commercial prospects and opportunities in Russia. Russia’s biggest exports include medicines, food products, textiles, and telecommunications equipment.
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