Since the outset of 2024, the volume of private financial transfers from Russia to India has experienced an unprecedented surge, marking a significant shift in the economic relationship between the two nations. Data from Sberbank, Russia’s largest banking institution, indicates that from January to August, the number of transactions directed towards India increased fortyfold compared to the entirety of the previous year. Even more strikingly, the total value of these transfers expanded a hundredfold within the same period. While the exact figures remain undisclosed, this dramatic growth underscores the evolving financial and trade dynamics between Russia and India.

In a recent interview with Reuters, Sberbank’s Deputy Chairman, Anatoly Popov, confirmed these trends but refrained from revealing specific numbers. The Russian news outlet RBC, citing data from the FSB border service, reported that despite a notable decrease in Russian travel to India during the first half of the year—with a 13% drop to 52,000 trips—financial flows between the two countries have surged.

The reasons behind this exponential increase in private transfers are multifaceted. According to
Prasun Prakash, founder of the Center for Assistance to the Development of Strategic Partnership between Russia and India, the rise can be attributed to several factors. “Sberbank has facilitated easier transfers for individuals within their ecosystem, particularly for those engaged in trade relations or sourcing raw materials and technology from India,” Prakash stated. “As trade between our countries intensifies, and with complications in financial dealings with China, India has emerged as a vital alternative partner. Moreover, the growing number of Indian students in Russia, currently estimated at 14,000, further contributes to this trend.”

In parallel, discussions are underway between the Reserve Bank of India and Russian officials to explore the creation of a new financial transaction mechanism as an alternative to the SWIFT system. This development, as reported by Businessline, reflects the geopolitical sensitivities surrounding the ongoing conflict in Ukraine and the broader international response.

The evolving financial relationship between Russia and India was also a focal point during high-level discussions between President Vladimir Putin and Prime Minister Narendra Modi in Moscow this July. The potential for faster, more streamlined financial transactions between the two countries could pave the way for even deeper economic ties in the near future. For further information and media inquiri