Russian and Indian officials agreed to a payment method through their national currencies, Bloomberg reports on July 15.
A payment agreement is reached for defense contracts settlements. One of the reasons for the transition to settlements in rubles and rupees is the desire of countries to protect themselves from the risks associated with US sanctions policy.
According to early reports, India will very soon make its first installment in national currency. The first installment partially pays for the contract to supply two Russian ships for the Indian Navy.
In 2018, two countries signed the agreement to supply the Russian S-400 missile defense system to India. It was agreed to have the Russian ruble instead of the US dollar for a contract currency.
It should be added, that earlier the Russian officials had already declared its intention to switch to settlements in national currencies in the military-technical sphere with all its trading partners.
Source: Rossa Primavera News Agency