As a top trade official informed on Wednesday, the Indian companies are using the SWIFT global payment system to settle dollar payments with Russia. 

After the Russian invasion of Ukraine, the West blocked access to SWIFT for several Russian banks, including Sberbank and VTB, to target Russian trade, making it harder for Russian companies to do business. SWIFT underpins financial transactions globally.

“We are using SWIFT for dollar payments," the official, who did not want to be named, said, when asked about the payment gateway being used for Russian payments.

The official did not give more details about the banks that Indian traders were using to make the dollar payments.

India's trade and finance ministry did not immediately respond to an email requesting comment.

According to data released by the Indian government on Wednesday, India's imports from Russia have increased nearly five times in April 2022 to February 2023 period to $41.56 billion from $8.54 billion, compared with the same period the prior year.

Last month, Reuters reported India's Russian oil imports climbed to a record 1.4 million barrels per day (bpd) in January, up 9.2% from December, with Moscow still the top monthly oil seller to New Delhi, followed by Iraq and Saudi Arabia.

India has been using varied currencies to settle trade with Russia since the war in February last year.

"Payments happen in different currencies, including dollar, euros, dirham," the country's Directorate General of Foreign Trade Santosh Kumar Sarangi told reporters.

According to Reuters, instead of U.S. dollars, Indian refiners paid for most of their Russian oil purchased via Dubai-based traders in United Arab Emirates dirhams.

Image source: Reuters