Indian defence purchases from Russia are in trouble
The delivery of S-400 air defence batteries has been impacted by the crunch in payment mechanisms between India and Russia. (Photo: Rosoboronexport)
Fearing sanctions, India needs to find an alternative mechanism as it continues to buy defence equipment from Russia.
The delivery of assorted Russian materiel to India faces uncertainty and delays, as both sides struggle to determine a dependable payment mechanism that does not violate US, EU and other sanctions imposed on Moscow after its Ukraine invasion.
Industry officials said Indian payments of over $3 billion to Russia for varied platforms, plus spares and components for in-service equipment, have accumulated over the past 10-12 months. This has resulted in Moscow halting all further credit to Delhi for defence purchases.
They said the initial complex rupee-ruble arrangement of payments via ‘vostro’ accounts, agreed in early 2022, had proven ‘unsatisfactory’. It
Already have an account? Log in
Want to keep reading this article?
More from Defence Notes
-
![Why small guns have been critical to layered CUAS architectures]()
Why small guns have been critical to layered CUAS architectures
Multiple countries have been deploying small arms as the last line of drone defence due to their multiple operational and tactical advantages.
-
![Singapore Airshow 2026: ST Engineering hints at export success for AME assault rifle family]()
Singapore Airshow 2026: ST Engineering hints at export success for AME assault rifle family
The Singapore-based technology company unveiled its new rifle family at this week’s airshow. Chen Chuanren spoke with the ST Engineering’s head of small arms to find out more about how the weapons have been refined.
-
![High tension in the High North – a wake-up call for NATO’s future Arctic defence efforts?]()
High tension in the High North – a wake-up call for NATO’s future Arctic defence efforts?
Any potential ‘Arctic Sentry’ mission would be months in the planning, but with tensions high in the region given the US’s push for Greenland, NATO countries will need to continue to emphasise their commitment to the region, analysts have said.
-
![Venezuela prepares personnel and equipment for a potential second US attack]()
Venezuela prepares personnel and equipment for a potential second US attack
Defence Minister Gen Vladimir Padrino López has declared that the Venezuelan armed forces “will continue to employ all its available capabilities for military defence”.
-
![As the new year starts, the UK defence spending delay continues]()
As the new year starts, the UK defence spending delay continues
The UK’s defence spending commitments remain uncertain as the government’s Defence Investment Plan, which had been due by the end of 2025, is yet to be published.
