India and Russia have worked out a new financial mechanism to bypass US sanctions against Moscow which will commence with payments for the sale of S-400 anti-missile system.
New Delhi is expected to make the first instalment payment for the S-400 by the end of the year, believed to be 10% of the $5.6Billion price tag, following which Moscow will commence deliveries by 2020.
"We have agreed with India on a mutually acceptable settlement mechanism, which is valid over the entire duration of the signed contract documents, beginning with the payments for S-400 systems. The mechanism is fully coordinated, permanent and mutually acceptable for both parties," Vladimir Drozhzhov, Deputy Director of the Federal Service for Military-Technical Cooperation (FSMTC) said in Moscow today.
Under current US sanctions, Russian defence entities are prohibited from receive payments in United States dollars using the US-controlled SWIFT inter-bank settlement mechanism. Also, Washington has threatened to impose secondary sanctions against countries that purchase Russian defence equipment.
D. Bala Venkatesh Varma, Indian Ambassador to Russia in December 2018 had said that the two countries were working to enhance the scope of Rupee-Ruble trade in the procurement of defence equipment.
"It is not just the S-400s, there are also other contracts which are subject to discussions on finding new modes of payment. It has not been finalized yet, but the general direction is greater use of national currencies. So there will be payments made in rupees and rubles, and we intend to take this forward on a mutually acceptable basis," Varma had said.
Turkey may be considering placing the S-400 air defence systems in Qatar or Azerbaijan as a way out of its impasse with Washington. “The authorities are still examining options about where the S-400s will be placed, with discussions previously held about deploying them in Qatar or Azerbaijan to avoid exacerbating Turkish-US tensions over the purchase,” spokesman for the Turkish president was quoted as saying by
Washingtons behaviour in regarding the S-400 deal is an attack on the strategic autonomy of New Delhi and Ankara, and US attempts to foist its interests on sovereign countries would prove counterproductive, experts from India and Pakistan said Monday. “My view is that Turkey and India will very jealously protect autonomy in their strategic decision making
The S-400 air defense system could give Turkey control over the airspace of a part of the Mediterranean and Syria, which is a territory where the United States and Israel routinely conduct aerial operations. The reason why the US is vehemently opposed to Turkey acquiring the S-400 is because Washington and Israel may have to keep Ankara informed before launching an air-raid
The Indian Ministry of Defense (MoD) has issued a tender worth $291 million (INR 2000 crore) for the procurement of 100 heavyweight torpedoes for the Indian Navys Scorpene-class (Kalvari-class) diesel-electric attack submarines (SSKs). “The tender is for around 100 torpedoes and will cater to the immediate requirement of the Navy,” a top ministry official was quoted as saying by the local media
The Indian army has reportedly axed a $500 million Spike anti-tank guided missile (ATGM) deal with Israeli firm Rafael after the missiles failed to clear the trials conducted by the Indian army last year. According to the media, the sensors of the Spike ATGM could not identify the target when the army was testing the missile at Pokhran, Rajasthan state
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