India signs $5 billion deal for Russian air defence systems

If the U.S. does impose sanctions on India, it is unclear how India could pay Russia for the military equipment, since the law bars dollar-denominated financial transactions.

Jinnie Lee, a spokeswoman for the U.S. Embassy in New Delhi, declined to comment on whether India would be granted a waiver, but said in a statement that the sanctions were “not intended to impose damage to the military capabilities of our allies or partners.”

Officials with India’s external affairs and defence ministries confirmed the deal was signed after Putin and Modi made no reference to it during a news conference following their talks.

An 11-page joint statement made only passing mention, saying that “the two sides welcomed the conclusion of the contract.”

The deal will likely bolster the close relationship between India and Russia that dates back to the Cold War, when the U.S. tilted toward Pakistan, India’s neighbour and archrival. But it is also likely to strain ties with Washington.

India is the world’s largest importer of military hardware, according to Mumbai-based think-tank Gateway House, and has depended on Russia for political support as well as billions of dollars in military hardware. Nearly 70 per cent of India’s present-day defence equipment was procured from Russia, according to India’s Defence Ministry.

India’s acquisition of the S-400 long-range missile systems has been considered critical to countering a perceived threat from China, which is increasingly making economic inroads throughout South Asia, India’s traditional sphere of influence, according to military experts.

“It gives the capability to destroy targets inside another country. It’s a very important capability,” said retired Indian air force Air Marshal Nirdosh Tyagi.

India has also developed closer defence ties to the U.S. in recent years with joint military drills and defence sales.

India has signed more than $15 billion in U.S. defence contracts since 2008, including for C-130J and C-17 transport aircraft, P-8I maritime patrol aircraft, Harpoon missiles and Apache and Chinook helicopters.

Ashok Sharma And Emily Schmall, The Associated Press

by Canadian Press

India signs $5 billion deal for Russian air defence systems

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