Sberbank Strengthens Russia-India Economic Ties: Boosting Trade and Labor Migration Ahead of Putin's Visit

Sberbank is preparing for President Putin's delegation to India, which includes executives from major Russian firms.

Russia's largest financial institution, Sberbank, is actively working to enhance industrial imports and workforce migration from India, according to First Deputy CEO Alexander Vedyakhin in a Reuters interview before President Vladimir Putin's visit to New Delhi.

Putin's first journey to India in four years begins Thursday, amid American pressure on India to reduce energy purchases from Russia. The Russian President will be joined by representatives from leading companies, including Sberbank.

"We are focusing on assisting our clients to not only export to India but also import from India," Vedyakhin explained, noting that the bank currently works with more than 6,000 Indian companies that have no previous trading experience with Russia.

Russia-India trade, valued at approximately $70 billion, remains significantly imbalanced compared to Russia-China trade, with Indian imports considerably lower than energy purchases. This imbalance complicates Moscow's efforts to establish settlements in national currencies to mitigate sanctions risks.

During the Cold War era, India maintained robust commercial connections with the Soviet Union, exporting tea, clothing, and hygiene products.

Vedyakhin mentioned that Sberbank is now demonstrating to Russian clients that India possesses strong machine-building, pharmaceutical, and IT sectors whose products could be purchased using rupees acquired from energy sales.

"Nearly all payments from Russia to Indian companies are now conducted directly in national currencies. Overall, the potential for growth in trade volume remains largely untapped," Vedyakhin stated.

Russia and India aim to increase bilateral trade to $100 billion. Russia's central bank announced Wednesday that it had established an office in Mumbai "to advance the interests of the Russian financial sector."

Vedyakhin reported that Sberbank had accelerated transactions through deferred payment mechanisms for Indian goods. The bank operates offices in New Delhi and Mumbai and manages an IT hub in Bangalore.

He added that American pressure on India had not impacted its business, with rupee account openings at its Indian branch increasing 3.5 times in 2025.

"We maintain constant communication with our Indian partners, providing necessary explanations. Our payments are in national currencies, in rupees, which are not subject to sanctions. Transactions in the rouble-rupee pair are proceeding smoothly," he explained.

Vedyakhin also emphasized the demand for Indian workers amid record-low unemployment in Russia and a projected shortage of 3 million workers by 2030.

"This represents a skilled workforce, and it is one of our cooperation areas. We assist our companies here in recruiting labor from India," he stated.