What Happened
- Sergey Glazyev, State Secretary of the Union State of Russia and Belarus, addressed the Russian-Indian Forum "From the Volga to the Ganges" in Mumbai on March 19, 2026, an event organised at the National Stock Exchange (NSE).
- Glazyev called for direct integration of Russian and Indian stock exchanges to establish a rupee-ruble market without dollar intermediaries — reducing transaction costs and removing dependence on Western financial infrastructure.
- He noted that while trade flows between India and Russia are returning to healthy levels, "markets remain unintegrated" — meaning financial market linkages (securities, derivatives, direct investment) lag far behind commodity trade volumes.
- Glazyev also advocated for expanding digital currency settlements between the two countries, including through BRICScoin as an intergovernmental settlement mechanism.
- Up to 70% of Russian exports to India are now reportedly settled in rupees (per Sberbank estimates), with the rest in third-country currencies.
- A free trade agreement (FTA) between India and Russia is reportedly being actively worked upon, with both sides aiming to remove financial market barriers.
Static Topic Bridges
De-dollarisation and SWIFT Alternatives
De-dollarisation refers to efforts by countries to reduce dependence on the US dollar as the dominant medium for international trade, reserves, and financial transactions. The 2022 Western sanctions against Russia following the Ukraine invasion — which included exclusion from the SWIFT interbank messaging network — accelerated this trend. Russia developed its own alternative, SPFS (System for Transfer of Financial Messages), while India and Russia piloted direct rupee-ruble trade settlement. The RuPay-Mir linkage between India's RuPay card network and Russia's Mir payment system also supports retail-level de-dollarisation. These efforts align with a broader global trend: several BRICS nations are exploring an alternative payment ecosystem, including a BRICS settlement currency.
- SWIFT (Society for Worldwide Interbank Financial Telecommunication): Belgium-based cooperative handling ~42 million messages per day globally; cutting Russia off from SWIFT was a major sanctions lever
- SPFS: Russia's domestic equivalent of SWIFT, operational since 2014; limited to Russia-linked transactions
- RuPay-Mir: India's domestic card network (RuPay) and Russia's Mir card system are interoperable, allowing payments in each country without Visa/Mastercard
- BRICScoin: Proposed intergovernmental digital settlement unit among BRICS nations; pilot projects underway
Connection to this news: Glazyev's call for direct rupee-ruble exchange integration at the NSE forum is the next logical step after commodity-level de-dollarisation — moving from trade settlement to capital market integration without dollar intermediation.
India-Russia Trade and Strategic Autonomy
India-Russia relations are characterised by what Indian foreign policy describes as a "special and privileged strategic partnership." Despite Western pressure following the Ukraine war, India has maintained trade with Russia — particularly in defence equipment, fertilisers, and crude oil. India became one of Russia's largest crude oil buyers after Western sanctions, importing heavily discounted Russian Urals crude. However, this has created payment bottlenecks: the accumulation of rupee balances in Russia (from Indian payments) that cannot easily be converted or deployed has been a central challenge in deepening financial integration. Glazyev's push for exchange linkages is directly aimed at solving this "trapped rupee" problem.
- India-Russia bilateral trade: approximately $65–70 billion in FY2025, up from $13 billion pre-Ukraine war
- India imports approximately 1.8–2 million barrels per day of Russian crude, accounting for ~35–40% of India's total crude oil imports
- Russia holds large rupee balances in Indian Vostro accounts (special rupee accounts for settling bilateral trade) that it cannot easily spend due to limited Indian capital market access
- India's strategic autonomy principle: maintaining ties with all major powers, avoiding exclusive alliances
Connection to this news: The "unintegrated markets" problem Glazyev highlights is precisely the blocked-rupee issue. Exchange integration and digital currency mechanisms are proposed solutions to convert trade surpluses into productive bilateral investments.
BRICS and the Global Push for a Multipolar Financial System
BRICS (Brazil, Russia, India, China, South Africa — expanded in 2024 to include Egypt, Ethiopia, UAE, Iran, and Saudi Arabia) has become the principal multilateral platform for advocating alternatives to the dollar-dominated Bretton Woods system. At its 2023 Johannesburg summit, BRICS discussed a common settlement currency. The New Development Bank (NDB), BRICS's multilateral lender, already issues bonds denominated in local currencies. India occupies a unique position: it benefits from the existing dollar system (large forex reserves, IMF membership, dollar-denominated exports) while also seeking strategic flexibility through diversified financial partnerships.
- NDB (New Development Bank): BRICS multilateral development bank headquartered in Shanghai; India is a major shareholder
- India's foreign exchange reserves: approximately $640 billion (as of early 2026), largely held in US dollar-denominated assets
- BRICS+ expansion (2024): Egypt, Ethiopia, UAE, Iran, Saudi Arabia admitted as full members
- IMF SDR basket: currently USD, EUR, CNY, JPY, GBP — no rupee or ruble inclusion
Connection to this news: Glazyev's forum at the NSE fits the broader BRICS agenda of building financial architecture that bypasses Western-controlled systems. India must balance its participation in this de-dollarisation push with its obligations to IMF frameworks and its own export interests.
Key Facts & Data
- Forum: "From the Volga to the Ganges," Mumbai, March 19, 2026, organised at NSE
- ~70% of Russian exports to India now settled in rupees (Sberbank estimate)
- India-Russia bilateral trade: ~$65–70 billion in FY2025 (up from ~$13 billion pre-war)
- India imports ~35–40% of its crude oil from Russia
- SPFS: Russia's SWIFT alternative, operational since 2014
- RuPay-Mir linkage: operationally live for card-based transactions
- BRICScoin: under development as BRICS intergovernmental settlement unit
- India's forex reserves: ~$640 billion (mostly USD-denominated assets)