India's top money lender has decided to stop processing any transactions involving Russian entities that have been slapped with sanctions after the invasion of Ukraine, a Reuters exclusive story said.
"We have a significant international presence and we need to comply with US and EU regulations as we are present in those jurisdictions and we cannot be seen as not adhering to these rules," Reuters quoted a senior SBI executive as saying.
The bank has also urged its clients to take 'extra precautions' while handling any transactions involving sanctioned countries.
India, which has a strong trade and defence relationships with Russia, has not openly condemned the latter. However, Prime Minister Narendra Modi had called for an end to the violence and called on all parties to make concerted efforts to return to the path of diplomatic dialogue.
Russia is one of biggest suppliers of defence products and equipment to India mostly under government-to-government contracts. Bilateral trade between India and Russia stood at USD 9.4 billion so far this fiscal year, against USD 8.1 billion in 2020-21.
India's main imports from Russia include fuels, mineral oils, pearls, precious or semi-precious stones, nuclear reactors, boilers, machinery and mechanical appliances; electrical machinery and equipment and fertilisers.
While major export items from India to Russia include pharmaceutical products, electrical machinery and equipment, organic chemicals and vehicles.
SBI has also asked the Indian oil companies about their exposure to Russia including stakes in Russian assets, funds received from Russia in the last year and lenders involved in routing these transactions, according to Reuters.
The Indian Oil Corporation said on Monday that it will no longer accept cargoes of Russian crude oil and Kazakh CPC Blend cargoes on a free-on-board basis due to insurance risk, according to a tender notice and a source familiar with the matter.
Apart from oil companies, several Indian fertiliser companies also deal extensively with Russia for imports of crop nutrients.