India has waived the requirement of a bank guarantee (BG) from Russia's United Shipbuilding Corp hit by US sanctions which prevented it from participating in an Indian submarine project.
Instead, a sovereign guarantee from Russia will be accepted for the project, The Economic Times reported Friday.
The Indian government last week provided a special 'one-time exemption' to clear a project for upgrading and overhauling of a Kilo class submarines in Russia as part of an ongoing contract for the Indian Navy fleet.
A US imposed banking sanction against Russia had halted many contracts with India as Russian companies were unable to furnish guarantees from Indian banks that are mandatory to secure military tenders in India.
Contracts worth over $5.5 billion were hit with the US imposed 'Specially Designated Nationals' (SDN) sanctions on Russia's United Shipbuilding Corporation (USC), which were extended last year to include all entities attached to it.
“With the waiver made for the submarine overhaul, similar arrangements are expected to ensure that the inter-governmental agreement with India in October 2016 for the sale of four Project 1135.6 class stealth frigates also goes through,” an unnamed official was quoted by the publication as saying.
The frigate project also involves creating shipbuilding infrastructure at the Goa Shipyard that has been nominated by the defence ministry, with the Navy likely to procure engines and other parts from Ukraine to complete the four frigates.
Other Russian defence entities dealing with the defence sector in India may be brought under the sovereign guarantee system.
Russia has reiterated selling S-400 missile systems to India and Turkey. Russian President Vladimir Putin in a meeting with the press Thursday, said “Russia is ready to supply S-400 surface-to-air missile systems to Turkey
The fifth test of Indias home-grown subsonic cruise missile, Nirbhay has been deferred due to a technical snag. Defence Research and Development Organisation (DRDO) postponed the test which was planned to be conducted on Wednesday
India has test-fired the land version of the short range surface–to–surface ballistic missile Prithvi-II, mounted on a Mobile Tatra transporter-erector Launcher (MTL). The missile was fired from the launching complex - III (LC-III) of the Integrated Test Range (ITR) at Chandipur-on-sea in the morning,
Indias second conventional submarine, INS Khanderi, built at the Mazagon Dock Shipbuilders Ltd will start sea trials this week at Mumbai coast. INS Khanderi is slated to begin its long sea trials from Thursday,
Ukroboronproms Kherson State Plant, Pallada launched the newest composite autonomous floating dock with a carrying capacity of 7100 tons. After launching, specialists of Palada plant will conduct a full test cycle, after which the dock will undergo American Bureau of Shipping certification for the first time in the history of Ukrainian shipbuilding industry and the Bureau
Indias locally made anti-tank missile, Prospina, equipped with improved Imaging Infra Red Seekers, will be tested for a reduced range of 3-3.2 km during the day time from the earlier target of 4km for both day and night
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