Indian banks likely to designate one branch to deal with Russian business as US sanctions loom: report

The minutes of the meeting reviewed by the paper said that trade finance has become a big issue for Russian banks as domestic banks stopped processing payments and stopped issuing and/or renewing bank guarantees.

“This not only stalls payments for existing defence contracts — that will eventually lead to delays in deployment of critical defence equipment that India has procured from Russia — but will make participation by Russia suppliers in new tenders almost impossible, thus limiting India’s choice of suppliers to Western players,” sources were quoted as saying in the report.