Russian President Vladimir Putin stated that BRICS is not currently considering the introduction of a single currency for the bloc.
In an interview with India Today, Putin emphasized that there is “no need for haste” on the matter, as launching a joint currency prematurely could lead to “serious mistakes.” He cited the example of the European Union’s adoption of the euro, noting that several Eurozone countries were “economically unprepared” at the time, which he argued led to significant issues.
The Russian president asserted that any move toward a single currency should be approached “very carefully,” adding that it is not BRICS’ immediate goal. “There is no rush, and by avoiding haste, you can avoid many grave mistakes,” he explained. He pointed to the Eurozone’s experience, where economies not ready for a common currency were integrated, causing social and financial imbalances. “You can’t simply impose a shared system when the underlying structures aren’t aligned,” he added.
When asked why the rupee-rouble trade mechanism has not gained traction despite mutual support for local currency settlements, Putin attributed the delay to economic factors rather than political ones.
He acknowledged, as New Delhi has noted for some time, that the trade imbalance between India and Russia complicates rupee-based settlement. Russia earns more rupees from oil exports than it can currently spend in India. “There is no obstacle here; it’s an economic issue,” Putin explained.
He noted that while India needs Russian oil, petroleum products, and fertilizers, which boosts Russia’s rupee earnings, the challenge lies in what Russian companies can purchase with these rupees in India. “It’s not about accepting rupees or making payments; it’s about what our companies can buy with the rupees, and we are thinking about that,” he said.
Putin also clarified that India has not imposed any restrictions on bilateral trade. In fact, he pointed out that Prime Minister Narendra Modi has requested that Russia increase its fertilizer supplies to support Indian farmers. “The Indian government requires more Russian fertilizers because they are urgently needed for India’s agricultural sector,” he said.
To address the trade imbalance, Putin stated that Russia is actively working on the issue. During his visit, Moscow will host a special meeting with Russian importers to explore Indian products and sectors where Russia can increase its purchases.
