With western nations blocking many Russian banks from accessing the SWIFT international payment banking system, following Russia’s invasion of Ukraine, roughly $400 million of Indian exporters may get stuck indefinitely.
While exporters will get more clarity on the impact when the finer details of the SWIFT ban are spelled out, they have had discussions with the government to deal with payment-related challenges. One of the options could be to restore the rupee-rouble payment mechanism with Russia, an industry official said, adding that the department of commerce is looking into the concerns of the exporters and is likely to come up with some measures soon.
Exporters are also hoping for a wind-down period will be available in the sanctions, which will take care of trade transactions in the pipeline.
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