Estimated payments of around $70-80 million for Indian stainless steel exports in transit or already delivered to Russia may be blocked, according to a statement of the Indian Stainless Steel Development Association (ISSDA) on Monday, February 28.
“Currently, there is about $200 million worth of stainless steel exports from India to Russia in contracts to be executed and this material will naturally face problems from the crisis,” ISSDA president K.K. Pahuja said.
The global community led by the US and the EU have announced punitive action against Russia by excluding some Russian banks from the SWIFT (Society of Worldwide Intrabank Financial Telecommunication) system, which facilitates cross-border transfer of funds. This will in effect impede Indian exporters receiving payments for exports to Russia.
“Exports from China, Europe and other parts of Asia to Russia will be blocked too. Our apprehension is that the surplus of stainless steel resulting from this will find its way into India as an alternative and we will see a glut here,” Mr. Pahuja said.