Published
5 years agoon
NEW DELHI — India signed a $5 billion deal to buy five Russian S-400 air defense systems on Friday despite a looming threat of U.S. sanctions on countries that trade with Russia’s defense and intelligence sectors.
The deal was signed in New Delhi during a visit by Russian President Vladimir Putin, who met with Indian Prime Minister Narendra Modi to discuss nuclear energy, space exploration and trade.
India has requested that the U.S. grant it a waiver for the deal from sanctions prescribed by the Countering America’s Adversaries Through Sanctions Act, a U.S. law passed in August 2017 that is intended to punish Russia for its annexation of Crimea and alleged interference in the 2016 U.S. elections.
The U.S. did not spare China from sanctions last month for purchasing its own Russian S-400 surface-to-air missile systems and fighter jets.
If the U.S. does impose sanctions on India, it is unclear how India could pay Russia for the military equipment, since the law bars dollar-denominated financial transactions.
Vladimir Sotnikov, a foreign affairs expert at an independent research institute in Moscow, believes India could make the payment in a mixture of rupees and dollars to try to circumvent the sanctions.
The deal will likely bolster the close relationship between India and Russia that dates back to the Cold War, when the U.S. tilted toward Pakistan, India’s neighbor and archrival. But it is also likely to strain ties with Washington.
India is the world’s largest importer of military hardware, according to Mumbai-based think tank Gateway House, and has depended on Russia for political support as well as billions of dollars in military hardware. Nearly 70 percent of India’s present-day defense equipment was procured from Russia, according to India’s Defense Ministry.
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