CHENNAI: With Russia facing economic sanctions from key nations, exporters and importers in India are worried about their shipments. As several banks have been placed under sanctions, making and receiving payments for shipments is currently a major challenge.

“Exporters and importers are currently in a wait and watch mode. The biggest challenge seems to be payment for shipments as several banks have been placed under sanctions by the US, UK and European Union. Whether they would be able to make payments in US dollar, pound or euro is not clear. Unless this is sorted out, shipments cannot be made as they might get stuck in between,” said Ajay Sahai, Director General and CEO of the Federation of Indian Export Organisations (FIEO).

Exporters and importers who had negotiated in these currencies cannot change it to Russia’s rouble. Further, duty drawback and RoDTEP schemes are based on the dollar payments. “We will have to see whether the SWIFT mechanism works,” he added. Further, fuel and freight charges have gone up. The rising crude oil prices have increased fuel charges. Shipping companies are also charging more for insuring the goods considering the risk factor.