In a significant move to strengthen trade ties between India and Russia, the Reserve Bank of India (RBI) has granted approval to 34 applications from various Russian banks. These approvals will enable the opening of special rupee vostro accounts in 14 prominent Indian commercial lenders. The announcement was made during a parliamentary session on July 2.

Highlighting the importance of this development, Minister of State for Commerce and Industry, Anupriya Patel, emphasized that India-Russia trade had been facing challenges due to the impact of Western countries' sanctions on major Russian banks. These sanctions led to difficulties in payment mechanisms, such as disconnection from SWIFT, problems with insurance and re-insurance coverage, and logistics issues with shipping and logistics companies that refrain from serving Russia-bound cargo.

To overcome these hurdles and strengthen the trade relationship, the Indian government has taken several measures. Among these steps are initiatives to conduct trade in national currencies, the smooth operationalization of the International North-South Transport Corridor, and the Eastern Maritime (Chennai-Vladivostok) Corridor.

In response to the changing trade landscape, the RBI issued guidelines on July 11 for foreign banks to open Special Rupee Vostro Accounts (SRVA) in Indian commercial banks. Consequently, 34 applications from various Russian banks have already been approved for opening SRVAs in 14 Indian commercial banks.

Addressing the EU's due-diligence proposal on Corporate Sustainability Due Diligence (CSDD), Minister Anupriya Patel explained that the Indian government engages in extensive consultations with relevant ministries, industry bodies, and trade experts to firm up India's stance on raising these issues at the appropriate international forums. While the European Commission has proposed a legislative directive on CSDD, its enactment by the EU's competent authorities is still pending. Ongoing discussions between the European Parliament and the EU Council aim to reach a consensus on the CSDD among the different EU authorities.

Minister Patel also highlighted that the full implications of the CSDD would only become apparent once the law comes into effect.

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