India urges Russia to lower trade barriers for Indian exports amid rouble pile-up

India is reportedly pressing Russia to ease trade barriers on Indian electronics, engineering goods, food products and fisheries in an effort to encourage Moscow to utilise $50-55 billion worth of roubles accumulated in bank accounts due to the oil-driven trade imbalance.

According to The Times of India, Indian exporters are facing multiple hurdles in accessing the Russian market. In the electronics sector, software-related requirements imposed by Russian authorities have emerged as a key obstacle, while stringent standards are delaying shipments of engineering goods. Local language compliance requirements are also proving to be a challenge for some product categories.

“Our goods have to contend with some Russian standards and some Eurasian standards, which makes it tough to export,” TOI quoted a person familiar with the discussions as saying.


The matter has been taken up at the highest levels of government, the report said, as India continues to run a large trade deficit with Russia, estimated at nearly $25 billion in the first seven months of the current financial year. The imbalance is largely driven by crude oil imports from Russia.

With some Russian oil companies facing US sanctions and Indian refiners scaling back purchases, the trade deficit is expected to narrow, although newer entities have stepped in to supply crude, according to the report. Owing to sanctions, Indian oil companies have been paying for Russian crude in roubles and other currencies, resulting in large sums remaining parked in Russian bank accounts. However, Indian exporters have struggled to ship goods to Russia, even as Russian retail chains have shown interest in importing Indian food and other products.

“We have taken up the issue of strict standards with Russian officials at the highest level and there is appreciation to resolve it,” TOI quoted an official as saying.

The discussions come ahead of negotiations next month on a proposed trade agreement with the Eurasian Economic Union, which includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan.

(With inputs from TOI)