Failure to receive payments from Russian brands is forcing Indian apparel industry to urge for the immediate commencement of the Rupee-Rouble trade mechanism with Russia. Payments from Russia have got stuck due to the sanctions imposed by the US and the western countries. This is making MSMEs’ operations challenging and difficult for them to sustain business.

Tirupur knitwear exporters, who earlier received payments in Euro/Dollar currency are now not receiving them due to the sanctions and exclusion of Russian Banks from SWIFT platform. Buyers have been willing to make the payments. However, they are constrained with no options, says Raja M Shanmugham, President, Tirupur Exporters Association. TEA has urged Nirmala Sitharaman, Union Minister of Finance, and Piyush Goyal, Union Minister of Textile and Commerce to resume the Rupee-Rouble trade mechanism with Russia immediately to receive stuck payments. From April 2021 to February 2022, India exported apparels worth $61 million to Russia.