Until October, Russian exporters retained approximately $8 billion in Vostro accounts. The funds in the Vostro accounts of Russian exporters remained unutilized due to limited investment prospects in India.
Until October, Russian exporters retained approximately $8 billion in Vostro accounts. The funds in the Vostro accounts of Russian exporters remained unutilized due to limited investment prospects in India.
Exporters from Russia, who initiated trade with India using Indian rupees, have recently utilized nearly $4 billion to procure defense equipment and armaments from India, alongside other imports and Indian securities. These funds were sourced from dormant balances in their Vostro accounts.
As of October, Russian exporters held around $8 billion in Vostro accounts. These accounts were established to facilitate trade between Russia and India, utilizing Indian rupees and are managed by a domestic bank on behalf of a foreign bank. According to a Mint report, due to limited investment opportunities in India, the funds in the Vostro accounts of Russian exporters remained unspent.
Over the past six months, they have utilized approximately 50 percent of these funds, as disclosed by two anonymous sources familiar with the matter. One of them stated, “Determining the exact amount in the Vostro accounts is challenging due to complex transactions. However, a significant portion of the funds has been utilized in the last 6-8 months.
In July 2023, the Reserve Bank of India (RBI) authorized 20 banks operating in India to establish 92 Special Rupee Vehicle Accounts (SRVAs) for partner banks from 22 countries, aiming to foster bilateral trade in local currencies. Russia was among the countries included in this initiative.
