Large sums in Indian rupees have accumulated in the accounts of russian companies in India as payment for oil – amounts equivalent to hundreds of billions of US dollars. Despite requests from the russians, India is in no hurry to provide a way to access these funds, the Foreign Intelligence Service of Ukraine (FISU) reported.
Since the start of the full-scale invasion of Ukraine and the imposition of international sanctions against russia, oil payments between russia and India have been made in rupees. To facilitate this, russian exporters hold special vostro accounts at Indian financial institutions. However, there is virtually no mechanism for withdrawing funds from India. The rupee is a limited-convertibility currency, meaning its use is subject to strict regulations, especially for non-residents. These funds can only be used to pay for imports of Indian goods, cover local taxes, or invest in Indian projects. Even so, purchasing stocks or bonds requires permission from the Reserve Bank of India, which is still only “considering” such a possibility.Recent developments in the Persian Gulf and the temporary easing of US sanctions on russian oil have spurred Indian refineries to increase their purchases of crude from the russian Federation. This means the volume of unused rupees will only continue to grow. For instance, from April to December 2025, trade between russia and India totaled USD 63.6 billion, of which approximately USD 59 billion came from oil exports. The benefits for the Indian economy are clear: oil is being purchased at significant discounts, while the money remains within the national economy, held in Indian banks.
