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sanctions on S 400 delivery to India, are working out payment options: Russia

There will be no impact of American financial sanctions on the delivery of the S 400 air defence systems to India and alternate payment options are being worked out, including a national currency swap, Russia has said.

The game changing air defence system that can take down targets from as far as 300 km is set for delivery by October next year, a top Russian official said, adding that the sanctions have no impact on the technical aspects of the deal.

However, US sanctions that prevent financial institutions from dealing with Russian military companies still come in the way for payments given that banks are unwilling to take a risk. The Russian side however says that US dollars are no longer the universal currency for foreign exchange, indicating that other channels are being worked out.

“We do not see how the contract will be impacted by the sanctions. The most important thing is that the transactions systems should start operations as soon as possible so that we can fulfil our obligations. We are establishing our own systems for money transaction and there are options like the trade counterbalance. Also, both Russia and India have solid national currencies,” Anatoly G Punchuk, Deputy Director of the Russian Federal Service for Military Technical Cooperation said.

The official said that as far as the technology in the S 400 is concerned it is not affected at all and that India will be getting the state of the art system at an early date.

“As the two parties had agreed, all the systems will be supplied to India as required in the contract. The first regiment will be supplied 24 months of the signing,” the official said.

As reported by ET, Russia’s order book in India is swelling, with the S 400 being the biggest deal signed in over a decade. An order for four frigates has also been signed while Russia is also set to bag a $ 1.5 billion contract for air defence missiles. The Russian IGLA S system has been confirmed as the lowest bidder for a mega deal to procure shoulder fired anti-aircraft missiles.

Source:economictimes.indiatimes.com

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