Asia

Defense Deals Worth $10Bln on the Cards During India-Russia Annual Summit

Sources stated that Indian Prime Minister Modi would gift a flight-worthy Indian-built MiG-21 to President Putin during the summit symbolizing India’s "time-tested relationship with Russia.” Last year, the annual summit was held on June 1, 2017, in Russia.
Sputnik

New Delhi (Sputnik) — The Indian government is set to sign major defense deals worth over $10 billion with Russia during the summit despite the threat of US sanctions.

READ MORE: India-Russia Surpass Trade Target Ahead of Schedule, Reset It to $50Bln

The deals include the purchase of five S-400 air defense missile systems worth over $5.5 billion, four 1135.6 Krivak-class frigates worth $2 billion, $1 billion worth of light utility KA-226 helicopters, and a contract agreement for the manufacture of 200 Kamov helicopters at an Indian facility.  

The Narendra Modi-led Cabinet Committee on Security (CCS) gave its approval for the purchase of S-400 air defense missile systems on Wednesday, which cleared the air of all speculations regarding the deal in the face of US sanctions on Russia.

"Looks like the final contract is going to be signed. I hope it gets signed. It will add a big punch to the air defense capability of the Indian Air Force and the country," retired Air Marshal Anil Chopra told Sputnik on Thursday. 

Russia, India Solving Problems Over Payments for Current Defense Contracts
Sputnik had reported earlier that the two countries had concluded a new payment mechanism under a financial arrangement that protects Indian financial institutions from US sanctions.

READ MORE: Russia May Help India to Launch Country's First Manned Space Mission — Reports

Besides, both countries are also expected to sign a government contract for the licensed production of over 600,000 AK-103 assault rifles for the Indian Army in an Indian ordnance factory. Indian Defense Minister Nirmala Sitharaman had confirmed earlier this month that it was an inter-governmental agreement and that the production would be done by the state-owned Ordnance Factory Board.

India and Russia will also most likely take forward discussions on leasing a third Akula-class nuclear-powered attack submarine that will cost India over $2 billion. Sources stated that a Project 971 SSN submarine had been picked out from among many options and that the boat would undergo massive repairs and modernization at a Russian shipyard before being handed over to India.

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