This agreement follows another deal with Russia to buy S-400 air defence missile systems at a cost of around $5 billion
Ignoring US sanctions on countries dealing with Moscow, India and Russia inked a $500 million deal for constructing two missile frigates in Goa for the Indian Navy on Tuesday.
This agreement follows another deal with Russia to buy S-400 air defence missile systems at a cost of around $5 billion.
The agreement for manufacturing the two Talvar-class warships was signed between defence Public Sector Undertaking Goa Shipyard Ltd (GSL) and Russia's state-run defence major Rosoboronexport under the government-to-government framework for defence cooperation.
Russian defence major Rosoboronexport emerged as the lowest bidder in the Indian Army's tender for procurement of short-range air defence missile systems. The other contenders for the deal were Swedish firm SAAB and French military firm MBDA.
Russia will provide design, technology know-how and key material to GSL for construction of the ships in India. The ships will be fitted with most advanced missiles and other weapon systems, sources said.
The construction of the ships is expected to begin in 2020 and the first one will be ready for induction in 2026, while second one will be ready by 2027. In another deal amounting to around $1 billion, Russia will supply two frigates to India by 2023.
The US government law Countering America's Adversaries Through Sanctions Act (CAATSA) can impose sanctions on military deals with Russia and mandates the Donald Trump Administration to punish entities engaging in significant transaction with the defence or intelligence establishment of Russia. New Delhi has conveyed its position to the US government stating Russia has been India's largest defence supplier for years and that won't change any time soon.
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