Russia And India Begin Negotations To Use National Currencies In Settlements, Bypassing Dollar

Tyler Durden's picture

Over the past 6 months, there has been much talk about the strategic proximity between Russia and China, made even more proximal following the "holy grail" gas deal announced in May which would not have happened on such an accelerated time frame had it not been for US escalation in Ukraine.

And yet little has been said about that other just as crucial for the "new BRIC-centric world order" relationship, that between Russia and India. That is about to change when yesterday the Russian central bank announced that having been increasingly shunned by the west, Russia discussed cooperation with Reserve Bank of India Executive Director Shrikant Padmanabhan. The punchline: India agreed to create a task group to work out a mechanism for using national currencies in settlements. And so another major bilateral arrangement is set up that completely bypasses the dollar.

From the Russian Central Bank:

First Deputy Chairman of the Central Bank of the Russian Federation KV Yudaeva and Executive Director of the Reserve Bank of India G. Padmanabhan at the twentieth meeting of the Subgroup on banking and financial issues of the Russian-Indian intergovernmental commission on trade-economic, scientific-technical and cultural cooperation discussed the current state and prospects of cooperation between banks.


The meeting was attended by representatives of central banks, ministries and agencies, credit organizations in Russia and India.


During the meeting dealt with the problems faced by the branches and subsidiaries of banks in the two countries and ways of addressing these problems.


As a priority area discussed the use of national currencies in mutual settlements. Given the urgency of the issue and the interest of commercial structures of the two countries, the meeting decided to establish a working group to develop a mechanism for the use of national currencies in mutual settlements. It will consist of representatives of banks and, if necessary, the ministries and departments of the two countries to coordinate its activities will be central banks of Russia and India.

What is curious is that now that China has sided firmly with Russia when it comes to geopolitical strategy (not least when it comes to recent development surrounding the downing of flight MH-17, recall "China Blasts "One-Sided Western Rush To Judge Russia" Over MH17"), and thus Russia behind China when it comes to claims by the world's most populous nation in its territorial dispute with Japan, Japan too is scrambling to secure a major ally in Asia, and it too is trying desperately to get on India's good side.

Bloomberg reports that "Japan’s Sasebo naval base this month saw unusual variety in vessel traffic that’s typically dominated by Japanese and U.S. warships. An Indian frigate and destroyer docked en route to joint exercises in the western Pacific."

The INS Shivalik and INS Ranvijay’s appearance at the port near Nagasaki showed Japan’s interest in developing ties with the South Asian nation as Prime Minister Shinzo Abe’s government faces deepening tensions with China. Japan for the third time joined the U.S. and India in the annual “Malabar” drills that usually are held in the Bay of Bengal.


With Abe loosening limits on his nation’s military, the exercises that conclude today showcase Japan’s expanding naval profile as China pushes maritime claims in disputed areas of the East and South China Seas. For newly installed Indian Prime Minister Narendra Modi, Japan’s attention adds to that of China itself, in an opportunity to expand his own country’s sway.


Japan’s involvement in Malabar underscores its interest in helping secure its trade routes to Europe and the Middle East. The Indian Ocean is “arguably the world’s most important trading crossroads,” according to the Henry L. Stimson Center, a foreign policy research group in Washington. It carries about 80 percent of the world’s seaborne oil, mostly headed to China and Japan.




“The Japanese are facing huge political problems in China,” said Kondapalli in a phone interview. “So Japanese companies are now looking to shift to other countries. They’re looking at India.”

So on one hand Japan is rushing to extend a much needed olive branch by the "insolvent western alliance + Japan" to India; on the other Russia is preparing to transact bilterally with India in a way that bypasses the dollar.

Which means that just as Germany has become the fulcrum and most strategic veriable in Europe (more on this shortly) whose future allegiance to Russia or the US may determine the fate of Europe, so suddenly India is now the great Asian wildcard.

Perhaps a very important hint of which way India is headed came moments ago from Reuters, which said that India has raised the issue of U.S. surveillance activities in the South Asian nation with Secretary of State John Kerry, the foreign minister said on Thursday. "Yes, I raised this issue (U.S. snooping) with Secretary John Kerry ... I have also conveyed to him that this act on the part of U.S. authorities is completely unacceptable to us," Sushma Swaraj said at a joint news conference in New Delhi. In response, Kerry said: "We (the United States) fully respect and understand the feelings expressed by the minister."

Thank you Snowden for helping move the geopolitical tectonic plates that much faster.

Now let the real courting begin.

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PlusTic's picture

Vlad taking care of business while Obummer destroys a nation...

Mr Pink's picture

Tick tock motherfuckers

actionjacksonbrownie's picture

Speaking of "tick tock"... how long does it take to remove the data from a flight data recorder??? A few minutes - a couple hours?


Awefully quiet out there now that the "proper authorities" have obtained all the evidence. I suspect that if Russia or the rebels were implicated in any way whatsoever, we would have heard all about it within 1 day of the black boxes being handed over.


I am surprised that the mainstream media isn't all over this...



dontgoforit's picture

Are you ready for tribulation?  Better get ready; the bridesmaid is at the threshold.

cifo's picture

Hopefully their currencies are based on gold holdings.

Renewable Life's picture

For years I heard these Wall Street blots say, "the demise of King dollar is all talk, there is absolutely NO evidence of it happening"!!

You don't hear that shit being spouted much anymore, do you???

There just as delusional to the ramifications, but no one is talking crazy anymore at least!!

BaBaBouy's picture

THIS IS WHY USA, Worlds FIAT PAPER Reserve Currency Provider, Is Targeting Russia Bad Bad Guy...

PT's picture

So how many countries is that now?  I've lost count.

I'm waiting for Vlad to do some deals with US companies to avoid using the US dollar ... he he he.
Naaaah, forget it.  Why would he want to support expensive US CEOs when he can deal with cheaper Indian and Chinese CEOs?

hedgeless_horseman's picture



As the United States of America collapses, the jewish
bankers in London will have Americans blaming our black president,
muslim terrorists, and russian anti-semites.

hedgeless_horseman's picture



To Jews, the use of a Scape Goat is...Tradition!

A man was selected, preferably a priest, to take the goat to the precipice in the wilderness; and he was accompanied part of the way by the most eminent men of Jerusalem. Ten booths had been constructed at intervals along the road leading from Jerusalem to the steep mountain. At each one of these the man leading the goat was formally offered food and drink, which he, however, refused. When he reached the tenth booth those who accompanied him proceeded no further, but watched the ceremony from a distance. When he came to the precipice he divided the scarlet thread into two parts, one of which he tied to the rock and the other to the goat's horns, and then pushed the goat down (Yoma vi. 1-8). The cliff was so high and rugged that before the goat had traversed half the distance to the plain below, its limbs were utterly shattered. Men were stationed at intervals along the way, and as soon as the goat was thrown down the precipice, they signaled to one another by means of kerchiefs or flags, until the information reached the high priest, whereat he proceeded with the other parts of the ritual.

Manthong's picture

Aaa.. all in all, it’s just another BRIC in the wall..

BaBaBouy's picture

Nothing Like An Old Jewish Goat Story To Pick Us Up On An Otherwise Shitty Day...

BaBaBouy's picture

"" CIA Admits Spying On Senate Computers ""

@ USa Regime Central CORE...
Excellent, They Are Now EATING Each Other Right At The Regimes Top Levels...

COSMOS's picture

Lots of Goyim walking around with Threads woven into their Dollar bills.

The_Dude's picture

I always enjoyed this little is a description.


All vows, and prohibitions, and oaths, and consecrations, and konams and konasi and any synonymous terms, that we may vow, or swear, or consecrate, or prohibit upon ourselves, •from the previous Day of Atonement until this Day of Atonement and ...• ?from this Day of Atonement until the Day of Atonement that will come for our benefit.? Regarding all of them, we repudiate them. All of them are undone, abandoned, cancelled, null and void, not in force, and not in effect. Our vows are no longer vows, and our prohibitions are no longer prohibitions, and our oaths are no longer oaths.


The Kol Nidrei prayer has been used by non-Jews as a basis for asserting that an oath taken by a Jew may not be trusted.[44] Historically, this accusation was leveled so often and so persistently that many non-Jewish legislators considered it necessary to have a special form of oath administered to Jews ("Oath More Judaico"), and many judges refused to allow them to take a supplementary oath, basing their objections chiefly on this prayer. As early as 1240 in the Disputation of Paris, Yechiel of Paris was obliged to defendKol Nidrei against these charges. The Russian government, in 1857, decreed that the prayerbooks must include, as an introduction to Kol Nidrei, a Hebrew explanation to the readers of the limited nature of the vows that could be released by this ceremony.[45]

COSMOS's picture

LOL what is honor among Criminals

cockroachfuture's picture

LoP where do you live and what's the local metal scene like? I'm considering a move.

LawsofPhysics's picture

Without giving too much away, I am generally located in Texas and see plenty of exchange in PMs and barter already.

El Vaquero's picture

Huh, I thought you were in UT for some reason. 

The Big Ching-aso's picture

I guess they could call it the Rublepee.

El Vaquero's picture

People will blame all sorts of shit.  But mostly they'll be worried about where their next meal is going to come from, and that's where shit gets scary.  Not only do you have to worry about Zombie Sheep, but also crazy dictator fucks rising on the promise of returning things to the way they were and a full belly.

TheSecondLaw's picture

There's one in South Africa - Julius Malema. Such a large dungheap of poverty-stricken people he stands on to crow his message while he personally wears Rolex and drives BMW and lives in mansion.  But the poor buy it cause what's their alternative?  Dumb hope is a stronger opiate than no hope.  After the global meltdown we're going to see much much more of this around the world.

Abitdodgie's picture

So a Rothschilds central bank of India is making a deal with a Rothschilds central bank of Russia to bypass a Rothschilds central bank of America , right

hedgeless_horseman's picture



Correct, except you should say Rothschild Branch Bank instead of Central Bank. Thank you for trying to keep us on track.

viahj's picture

yep, or do you think that a Rothschild bank actually cares about the USD?  once the USD is played out, they move on to the next game and start all over.

meghaljani's picture

What evidence do you have to prove that Russian and Indian central banks are owned by Rothchild family?

Thought Processor's picture



Call me crazy, but if Russia locks up trade with both China and India in er, non-dollars then where do all the extra dollars go that the world is flooded with?



eclectic syncretist's picture

Perhaps the Fed will raise interest rates in hopes of getting more suckers to buy treasuries.

zaphod's picture

Rates can go up? I call BS, I've only seen them go down in my lifetime. MSNBC tells me we will have negative rates soon and then all will be well. 

BaBaBouy's picture

""Call me crazy, but if Russia locks up trade with both China and India in er, non-dollars then where do all the extra dollars go that the world is flooded with?""

Its Called A REVERSE-SPLIT (ie Devaluation), 1 For 1000 or so...

Headbanger's picture

Exactly!   All those unwanted dollars flood the FX markets making them worthless!

Which is why the Federal Reserve is raising U.S. Treasury yields now to prevent a complete collapse of the dollar value.

We can also expect oil to get a huge spike up in price to soak up U.S. dollars.

So expect a major war to start to spike oil prices and to create a flight to safety into the U.S. dollar


BTW, all this will cause massive inflation to soak up all those unwanted dollars too

Monty Burns's picture

Maybe, but it should be happening by now. But no sign, as far as I can see, of those dollars flooding home....

Bastiat's picture

SAn Francisco real estate market,  Silicon Valley bubble.

RaceToTheBottom's picture

I think real-estate.  I think there are lots of foreclosure stuff still out there, yet prices still rise.

Stockmarket and Hockey-stick IPOs?

El Vaquero's picture

This is the kind of thing that happens slowly at first, then all of a sudden.  It's been happening for a while, but you still have to wait until the "all of a sudden" phase.  Patience, and be careful what you wish for.

dontgoforit's picture

'All of a sudden' has been palpable for awhile; now it is getting real.

Dubaibanker's picture

Headbanger, Hi again.

With flight to safety, and all the yuan agreements for trade as well as settlement tied up, barter trade on the rise, bitcoin and gold being used more than ever, Iran having given the experience of what to do when you are sanctioned, the world outside US has learned a lot in the last few years. More and more bonds are being issued in CNH instead of in EUR or USD. Caterpillar, BP, VW, Gazprombank and Indian banks and many others have already issued bonds in CNH. Most chinese and HK companies as well as Singaporean companies issue lots of bonds in local currencies including CNH instead of USD.

China has started appreciating the yuan again aggressively since last week. Once the Chinese move further up the chain with more consumption i.e. more imports, than just exports which trend has been ongoing since 2009 onwards, China will actually become more of a safe haven. Only thing people dont like about china is that they are opaque but when did we last see a top most politicain go to jail for corruption? It has heppened in China at least 3-4 times just in the past 1 year.

Well, then again we dont live in  a normal world as far as the fake economies of the western capitalist countries are concerned.....sanctioning Russia but not sanctioning Israel but selling them not a great way for a world leader like USA to continue to be respected by all.

US has already sent massive inflation to countries it has never liked historically such as Iran, Venezuela, Vietnam and Zimbabwe, now it is time for a payback!

Sudden Debt's picture

Mexico, they use them to make pignata's and stuff them full of sugar sweets and sell them back to Americans for more dollar paper.

Max Cynical's picture

Call me crazy, but if Russia locks up trade with both China and India in er, non-dollars then where do all the extra dollars go that the world is flooded with?

Residential/commercial real estate, productive assets, land, farms, businesses, etc...there's no restriction on foreign capital investment.

tumblemore's picture

"where do all the extra dollars go that the world is flooded with"


by magic a trillion dollars becomes worth a billion dollars (hence why the neocons and banking mafia are beating the war drums to scare Vlad and the BRICS off)


The Econ Ideal's picture

All those dollars exported will come back to the U.S. ... to buy assets and drive up inflation. 

NoWayJose's picture

Especially the cockpit voice recordings and directional changes. I could see taking more time on analyzing the flap position or hydraulics, but voice recordings? My hunch is that they are afraid that the Russkies captured those same recordings. If they release them in an edited fashion, it will prove manipulation by the US/EU. Same with satellite data. If you do not release anything, you can use the MSM to imply guilt.

SWRichmond's picture

I think it's a pretty safe bet that Putin has a copy of all the data.

It's been very interesting to me to watch this propaganda play out.  The west is so accustomed to having their way, using the MSM to drive the story the way they want, and convincing everyone to go along with their version of the story.  And that's clearly not happening anymore, as the sharks smell US blood in the water and know they no longer need to kowtow to the US line like they used to, no matter how fucking ridiculous and self-serving it was.

Putin hangs back and counterpunches, always with great effect.

Thought Processor's picture



Putin has everything he needs on MH-17.   The whole western propaganda machine had to turn tail virtually overnight as Russia laid it on the table.


It looks like it was 'lured' in and down in altitude by the Ukraine forces / Kiev contraol and then fired upon.  No accident.   Should be mulitiple voice recordings verifying hte Kiev control of this.

SoDamnMad's picture

I never understood how the worker in the video could find a black box in the middle of a wheat field what with so many wires and cables connected to it. I never saw any fuselage in that field, just "Lookie here what I found."   When the men got filmed cutting the bulkhead section apart with a gas powered abrasive saw I figured there goes the REAL black box.  Vlad's "robust investigation was a non-event. 

whirling tword freedom's picture

LOL... just got a vision in my head of the movie, "The Stand"... with obama running around radiated saying, "tick tock, tick tock!".....   I guess Ebola may be the new Capt. Trip.  Jeeeze.