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)
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
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