To make this website work, we log user data. By using Shephard's online services, you agree to our Privacy Policy, including cookie policy.

×
Open menu Search

Indian defence purchases from Russia are in trouble

31st August 2023 - 00:05 GMT | by Rahul Bedi in Delhi

RSS

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?

Read this Article

Get access to this article with a Free Basic Account

  • Original curated content, daily across air, land and naval domains
  • 1 free story per week
  • Personalised news alerts
  • Daily and weekly newsletters
Create account

Unlimited Access

Access to all our premium news as a Premium News 365 Member. Corporate subscriptions available.

  • Original curated content, daily across air, land and naval domains
  • 14-day free trial (cancel at any time)
  • Unlimited access to all published premium news
Start your free trial
Rahul Bedi

Author

Rahul Bedi


Rahul Bedi is a New Delhi-based journalist reporting for over 30 years on strategic, military, and security …

Read full bio

Share to

Linkedin