Secondary sanctions imposed by the West have instilled fear among global banks, leading some to refrain from engaging in business with Russia. This has prompted Russian banks and companies to seek alternative methods for conducting cross-border payments.

The tightening of sanctions has significantly impacted Russia's oil export revenue, according to Elvira Nabiullina, the governor of the Bank of Russia. Despite the initial decline in exports, the surge in oil prices had led to a rebound. However, secondary sanctions have hindered this recovery.

Despite the resilience of Russia's economy amidst the war in Ukraine and trade sanctions, the country's reliance on energy exports has enabled it to maintain its exports by shifting to alternative markets like India and China. However, Chinese banking giants have recently halted payments from sanctioned Russian financial institutions.

The fear of Western reprisals has now extended to other global banks that Russia had been using to circumvent sanctions. As a result, these banks are also distancing themselves from business with Russia. This has created additional challenges for Indian customers.

Nabiullina indicated that Russia is determined to overcome these sanctions. Russian banks and companies are exploring new payment methods with other countries, demonstrating their adaptability in the face of increasing obstacles.