Russia's SBER, 16 banks get nod to import gold

India Directorate General of Foreign Trade (DGFT) has officially authorized Russia SBER bank and 16 other commercial banks to import gold and silver into the country. This formal notification, issued on Friday, expands the network of entities permitted to facilitate precious metal imports, a move with significant implications for bilateral trade. This decision is primarily driven by India strategic efforts to maintain trade relations with Russia amidst ongoing Western sanctions following the Ukraine conflict. By enabling Russian banks like SBER to directly participate in gold imports, India aims to establish alternative payment mechanisms and balance its trade, particularly by settling its significant crude oil imports from Russia in a manner that bypasses traditional financial channels affected by restrictions. For Russia, this provides a critical avenue to monetize its substantial gold reserves and production, circumventing the limitations imposed by being largely cut off from the SWIFT international payment system, while for India, it helps manage its trade deficit and secures a reliable supply of a crucial commodity.