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India to forge ahead with Russia accord

Despite US threat of sanctions, Delhi will acquire S-400

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Even as the US has been warning nations to scrap their deals with Russia for the procurement of S-400 missile system as they are in violation of CAATSA (Countering America's Adversaries Through Sanctions Act), India — following in Turkey's footsteps — has decided to go ahead with it plans to acquire them. Known as the most advanced long-range surface-to-air missile defense system, the S-400 is the need of the hour for India in light of the growing threats from both China and Pakistan.

To influence a future deal with Russia, the US has offered the fifth-generation F-35 fighter jets to India — for both the Air Force and the Navy — but India had already inked a deal with France to buy 36 off-the-shelf Rafale fighter jets from Dassault. India, meanwhile, also signed the S-400 missile system deal with Russia in October 2018, after wide-ranging talks between Russian President Vladimir Putin and Prime Minister Narendra Modi.

The S-400 deal was among agreements that are cumulatively worth $10 billion. They include joint production of Kamov Ka-226T helicopters worth $1 billion, and four warships for the Navy, with two of the vessels built in Russia and two at a shipyard in India. Modi in March had also inaugurated a Kalashnikov rifle plant in Amethi under a joint venture with Russia.

‘Delivery After 2020’

India has closely watched US’ moves with turkey
Known as the most advanced long-range surface-to-air missile defense system, the S-400 is needed for India in light of the growing threats from both China and Pakistan
Pre-empting US sanctions & banking restrictions, both India and Russia have now agreed on a payment method through their national currencies

Recently, India has been watching the US actions against Turkey, which is also procuring the S-400 missile system and as no economic sanctions against Turkey have yet been announced (US President Trump has, however, refused to sell F-35s to Turkey), sources in the Defence Ministry said, "There is no questioning of scrapping the deal with Russia."

Meanwhile, a top American commander, Admiral Philip Davidson, said on Saturday, "India acquiring the S-400. It's a Russian air defense system. That's a bit of a problem. But we continue dialogue. We are on a 10,000-step journey with India."

Additionally, pre-empting US sanctions and banking restrictions, both India and Russia have now agreed on a new payment method through their national currencies — rupees and roubles — for the deal. With this arrangement, delivery of the S-400 is planned to start after 2020. This arrangement will also enable India to pay for the first installment for two warships that Russia is building for its Navy.

With inputs from agencies

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