Government urges Russia to reduce trade barriers – The Times of India

NEW DELHI: The government is pushing Russia to lower barriers to exports of Indian electronics, tech goods, food products and fisheries as part of its efforts to get Moscow to use the equivalent of $50-55 billion in rubles sitting in bank accounts due to the oil-induced trade balance. In electronics, software is a major problem for Russian authorities, while strict standards for tech goods are holding back Indian shipments. For some goods, local language requirements also appear to be a problem. “Our goods have to meet some Russian standards and some Eurasian standards, which makes it difficult to export,” said a person aware of the discussions. The issue has been raised at the highest level as India has a huge trade deficit estimated at nearly $25 billion in the first seven months of the current fiscal due to large crude oil imports from Russia.

An eye for reducing the shortage

With some Russian oil companies facing US sanctions and Indian refiners cutting supply, the trade deficit is expected to narrow, although some newer entities have stepped in to close the gap. Faced with sanctions, Indian oil companies paid for the oil in rubles and other currencies, with large sums sitting in bank accounts where trading took place in Russian currency. In contrast, Indian companies are struggling to ship goods, despite Russian chains showing interest in buying food and other items. “We have discussed the issue of strict standards at the highest level with Russian officials and there is appreciation to resolve this,” an official said, ahead of talks on a trade deal with the Eurasian Economic Union, made up of Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, next month.