7/14/22, 11:38 AM India Russia rupee trade: Petersburg Social Commercial Bank may be a focal point of India-Russia rupee

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Business News › Industry › Banking/Finance › Banking › Petersburg Social Commercial Bank may be a focal point of India-Russia rupee trade

Petersburg Social Commercial Bank may be a focal

point of India-Russia rupee trade
By Saikat Das, ET Bureau Last Updated: Jul 13, 2022, 08:43 PM IST
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Synopsis

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Replacement of European companies in the Russian market by Indian companies is

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increasing, Vladimir L Pribytkin, the bank’s founder and chairman told ET in an interview
over the phone. “That is why the trade share of Indian companies on our market is

Bajaj
definitely going to expand each month, if not each week.”

Petersburg Social Commercial Bank

Agencies

Finance
(PSCB) could well become a focal point
of India-Russia rupee trade, as it is one
of the few Russian banks outside

Fixed
western sanctions as its presence in
advanced economies is insignificant.

In St Petersburg, PSCB is one of the only two that

can process settlements abroad.
Replacement of European companies
in the Russian market by Indian
companies is increasing, Vladimir L
Deposit
Pribytkin, the bank’s founder and chairman told ET in an interview over the
Bajaj Finance
phone. “That is why the trade share of Indian companies on our market is
definitely going to expand each month, if not each week.”

The bank, based in the second largest Russian city, St Petersburg, is working
actively towards rupee transactions to support this growing trade, he said.

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7/14/22, 11:38 AM India Russia rupee trade: Petersburg Social Commercial Bank may be a focal point of India-Russia rupee trade - The Econo…

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Once Russia starts doing trade in rupees, or in other currencies, it may not
return to dollar-ruble, Pribytkin said, citing also that USD/EUR international
settlements were getting more complex for Russian banks.

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international trade in rupees, potentially facilitating greater bilateral business

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with Russia, which is facing sanctions from the West over the Ukraine war.

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PSCB has been operating in the banking space since 1993. It has branches in St
Petersburg and Moscow, and also has international operations.

FD interest rate

“Our bank was the first Russian bank to believe in INR and opened a still
up to 7.75%.
operating correspondent account with India in 2016,” said the chairman.

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India and Russia mostly collaborate in pharmacy, programming and food
(especially fruits/vegetables).

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“Also, we are expecting drastic growth in the household appliances segment
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(for Indian suppliers), as European companies are leaving the related part of
the Russian market,” said Pribytkin.

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field.

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In St Petersburg, PSCB is one of the only two that can process settlements
abroad.

3. Rupee settlement may bring

annual savings of $36 billion

in hard currency
“As payments in USD/EUR are proceeding at an extremely slow pace due to
complicated compliance checks, we are very invested into an idea of working
in INR even more actively,” said Pribytkin.

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With Russia being snapped from the SWIFT system, Russia and its largest experience for success in this emerging era

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“The possibility of a complete SWIFT turn-off would not mean a lot for the Sudip Bandyopadhyay

Russian Federation and for its good old trade partners,” he said.

Banks already have an alternative system for processing international

settlements. For some time, according to Pribytkin, the whole process is going
to be unusual and a little bit more complicated; nevertheless demand creates
supply.

For example, Visa, Mastercard and American Express — all payment A Mutual Fund for Every Investor

gateways — have suspended their services in Russia. Due to this, Russia’s own AD Mirae Assets Mutual Fund KNOW MORE

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