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
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