As Russian tanks rolled into Ukraine, the US and its allies deployed sanctions against Moscow, which included the exit of major firms and price caps on Russian oil. In this crisis, India grabbed the opportunity to buy Russian oil at a discounted price to stabilise fuel prices, and to use the crude to scale up refined fuel exports to Europe.
But after talks to settle bilateral trade in the Indian Rupee as a global currency were halted, Russia now sits on billions of Rupees that it is unable to use.
Burdened by billions?
The billions are deposited in Indian banks, and Russia needs to convert them to another currency before it can spend the money.
The country isn't sure about spending the Indian Rupee because of volatility in its exchange rate, and has instead opted for payments in the Chinese Yuan.
Since the beginning of the war, India has defied western pressure and has continued buying more oil from Russia, resulting in a five-fold rise in its overall imports from the country.
Dealing outside the system
Russia has been pushed out of the global financial system ever since it waged a war on Ukraine and has been recommending other national currencies as alternatives to the widely used US Dollar.
Some of the firms importing oil from Russia have turned to Dirhams and Rubles, while the arms trade between the two countries has also been affected by the currency dispute.
