Russian oil money is 'stuck' in India – intelligence reports
This was reported by the Foreign Intelligence Service.
With the start of the full-scale invasion of Ukraine and the imposition of sanctions against Russia, oil payments between Moscow and New Delhi are now being made in rupees. To this end, Russian exporters hold special Vostro accounts with Indian financial institutions.
At the same time, there is effectively no mechanism for withdrawing money from India. The rupee is a restricted currency, so there are strict rules governing its use, particularly for non-residents. These funds can only be used to pay for imports of Indian goods, settle local taxes, or invest in Indian projects. The purchase of shares or bonds must be authorised by the Reserve Bank of India, and this possibility is still only under consideration there.
Iran’s de facto closure of the Strait of Hormuz and the temporary easing of US sanctions on Russian oil have spurred Indian refineries to step up their purchases of crude from Russia. This means that the volume of unused rupees will only increase.
In the first nine months of 2025 (April–December), trade between the two countries reached $63.6 billion, with oil exports accounting for the lion’s share – around $59 billion. For Delhi, this scenario is extremely advantageous: the country not only obtains energy resources at a significant discount, but also effectively retains capital within its financial system, as payments are settled in the national currency.
