The way I’m reading this, this is not good news for russia.

“Today, we are opening accounts in rupees for Russian clients as well. We do not rule out the possibility that, in addition to being a means of payment, the rupee may also become a means of savings,” he added.

Russia is a captured customer. They’re able to sell their oil and settle the transaction in Rupees (the currency of India). So essentially the only things they can buy with that money are product if India. India businesses selling to russia know this too, so they can jack up their prices knowing that russia doesn’t have another place to spend the money.

Countries around the world very typically buy up each other’s currency (usually in the form of Treasury notes or certificates, but actual cash is also just as valid). Because russia is now holding larger and larger sums of Rupees without spending them, this also helps increase the value of India’s currency in the world.

For US audiences, think about coal mining towns of the early 20th century and coal companies paying their workers in ‘scrip’ which was money only spendable at the company owned store. Because it was only spendable at the company store, prices could be high on products, and you wouldn’t have a choice to shop elsewhere. Further, you couldn’t save up your money to move away, because what you’re saving is just company scrip, not real money. This is close to what India appears to be doing to russia.