India and Russia Fast-Track New Bilateral Investment Treaty

India and Russia are accelerating the finalisation of a new bilateral investment treaty aimed at providing investors with the legal certainty needed for project and business decisions, a senior official said. The move is part of ongoing efforts to strengthen local currency settlement mechanisms to reduce payment frictions that often slow down trade.

The treaty is expected to give investors on both sides the confidence required when finalising investment decisions. "We (India-Russia) are fast-tracking a new bilateral investment treaty to give investors on both sides the legal certainty that projects and businesses look for when they are finalising investment decisions," the official said.

In addition, the two countries continue to work on enhancing local currency settlement mechanisms. "We continue to strengthen local currency settlement mechanisms, because payment friction, more often than tariffs, is what slows trade down on the ground," the official added.