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    S-400 SAM for India


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    S-400 SAM for India - Page 6 Empty India likely to pay for Russian arms in euros to beat US sanctions

    Post  Pinto on Fri Jun 28, 2019 3:49 pm

    India likely to pay for Russian arms in euros to bypass US sanctions:

    To avoid the threat of US sanctions for the purchase of Russian military hardware, India is likely to make its payments for Russian arms in euros to a Russia-nominated bank, reports The Economic Times.

    The move comes as an alternative payment system for the defence equipment as the threat of US action under the controversial Countering America’s Adversaries Through Sanctions Act (CAATSA) has scared away financial institutions from processing these transactions.

    While certain payments for existing defence transactions have been processed through the rupee-rouble route, the people said that a solution was firmed up this month with Russia’s VTB Bank agreeing to receive money in euros. Over $4 billion worth of payments to Russia have bunched up for this financial year, with the biggest contract being the S-400 system, followed by the Chakra III submarine lease and the procurement of four frigates for the Indian Navy

    Besides, two additional Russian contracts are expected this year for the supply of AK 203 rifles to the armed forces that will be manufactured in Amethi and the inking of an Army contract to procure Ka-226 helicopters that will be produced by a HAL-Russian Helicopters JV.

    Sources told ET that VTB Bank is open to using a European account for the money transfer. The Indian bank selected for the transaction will have the least exposure to US currency. VTB Bank has processed large deals in India in the past few years, including the over $12 billion investment into the Essar Group that bailed it from bankruptcy.

    As first reported by ET, while the Indian government has been clear that it will not move away from purchasing arms from Russia, the threat of US action under the controversial Countering America’s Adversaries Through Sanctions Act (CAATSA) had scared away financial institutions from processing transactions.

    In April 2018, the State Bank of India put a stop to all payments after Russia’s flagship arms trading company Rosoboronexport came under sanctions by the US Office of Foreign Assets Control (OFAC), blocking over $2 billion that had to be transferred. While India found an alternate route for payments by using banks with minimal exposure to the US, the issue took over a year to resolve as Russian financial institutions too refused to be party to transactions that would threaten their global business.

    Last year, alternative payment routes were found to transfer money for critical spares and repairs, including work on the INS Chakra nuclear powered submarine that had suffered an accident but a permanent route to send large amounts had remained elusive.

    Despite the repeated threat of US sanctions, India has made it clear that it will not back off from the S-400 deal with Russian manufacturer Almaz-Antey that has been in Washington crosshairs for long. At the same time, India negotiated several defence deals with the US, including the purchase of air defence missiles for the national capital, armed drones and naval aircraft.


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    S-400 SAM for India - Page 6 Empty We Take Sovereign Decisions Based On Threat Perception: Centre On S-400 Deal With Russia

    Post  Pinto on Thu Jul 04, 2019 8:07 pm

    India signed an agreement with Russia last October to procure a batch of the S-400 missile defence systems at an estimated cost of Rs. 40,000 crore.

    All India | Press Trust of India | Updated: July 03, 2019 23:56 IST

    NEW DELHI: In the wake of US pressure to scrap the S-400 missile deal with Russia, India on Wednesday said it takes sovereign decisions based on entire spectrum of security challenges facing the country.
    The comments were made by Minister of State for Defence Shripad Naik while replying to a question on the billion dollar deal with sanctions-hit Russia.

    "Government takes sovereign decisions based on threat perception, operational and technological aspects to keep the armed forces in a state of readiness to meet the entire spectrum of security challenges," he said in a written reply.

    The minister was answering a question on whether countries including the US have expressed concerns on the deal and apprised India of the same.

    The US has been maintaining that that New Delhi's deal to procure the lethal missile system from Moscow will have "serious implications" on India-US defence ties.

    India signed an agreement with Russia last October to procure a batch of the S-400 missile defence systems at an estimated cost of Rs. 40,000 crore.

    India went ahead to seal the deal notwithstanding the US's warnings against it. India believes that it meets the US waiver criteria for procuring the S-400 missile defence system from sanctions-hit Russia.

    Last month, India conveyed to US Secretary of State Mike Pompeo that it will go by its national interest on the missile deal.

    The US announced sanctions against Russia under the stringent Countering America's Adversaries Through Sanctions Act (CAATSA) for its alleged meddling in the American presidential election in 2016.

    India wants to procure the long-range missile systems to tighten its air defence mechanism, particularly along the nearly 4,000-km-long Sino-India border.

    The S-400 is an upgraded version of the S-300 systems. The missile system, manufactured by Almaz-Antey, has been in service in Russia since 2007.

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    S-400 SAM for India - Page 6 Empty Re: S-400 SAM for India

    Post  Pinto on Wed Jul 10, 2019 5:31 pm

    MOSCOW 9 (Sputnik) - Russia is hoping to receive an advance payment for S-400 air defence systems from India by the end of 2019 so that the deliveries may begin in 2020 and be completed by 2025, Deputy Director of the Federal Service for Military-Technical Cooperation (FSMTC) Vladimir Drozhzhov told reporters.

    "The [payment] scheme has been agreed, and I hope that the first payment will soon be transferred by the Indian side", Drozhzhov said. "I think that by the end of 2020 - the beginning of 2021 the first system should be delivered. After the first set, the systems will be delivered under a certain schedule over the next few years, that is, India should get all the systems by2024-2025", he explained.

    In early October 2018, Moscow and New Delhi concluded a contract on the deliveries of Russia's S-400 missile systems to India worth over $5 billion. The deal was signed during Russian President Vladimir Putin's two-day visit to India.

    Previously, the US State Department gave India a subtle warning that buying weapons from Russia - in particular, S-400 missile defence systems - could compromise further arms deals between New Delhi and Washington, leading to the sanctions against India in line with Countering America's Adversaries Through Sanctions Act (CAATSA).

    The S-400 is an advanced mobile air defence missile system which can carry three different types of missiles capable of destroying a variety of aerial targets at a short-to-extremely-long range, from reconnaissance aircraft to ballistic missiles.

    Joint Construction of Submarines
    According to Drozhzhov, Moscow has also offered New Delhi joint construction of submarines rather than licensed production of the boats, which is more profitable in technological terms.

    "We offered India to build a submarine on the basis of our Amur-1650 project ... We do not offer licensed production, we propose to jointly design the boat and jointly build the lead vessel", the official said.

    According to him, the Indian side will possess all the technological possibilities for the construction of the series after that.

    "Naturally, such cooperation would involve the transfer of all technologies for its creation. Moreover, we offer the installation of the BrahMos missile system on this boat. This project can be successfully implemented in the interests of the two countries", Drozhzhov stressed.

    India has previously announced a tender for the purchase of six diesel-electric submarines armed with land attack and anti-ship cruise missiles, in which Russia participates with Project 636 and 1650 Amur-class vessels.

    According to media reports, potential foreign partners for the contract include Naval Group (France), Kockums (Sweden), Rubin Design Bureau (Russia) and Howaldtswerke-Deutsche Werft (Germany).

    Powerless Sanctions
    The FSMTC Deputy Director also noted that Washington's restrictions won't prevent Russia from participating in Indian arms procurement tenders, including on purchase of 110 fighter jets, or deliveries of Russian weaponry if Moscow wins them.

    "Sanctions do not bring anything good to anyone. Everyone understands this very well, so we are forced to find ways to circumvent them. We are grateful to our Indian partners for taking efforts in this respect", Drozhzhov said. "But since we have found solutions for a project like the S-400, we have found ways to cooperate on the Project 11356 frigates and Kalashnikov assault rifles, I hope that we will find the same solutions for the supply of fighter jets, and I see good prospects of our participation in the upcoming [light fighter] tender".

    Russia's MiG corporation earlier reported that the new Russian MiG-35 light fighter, which is participating in the Indian Air Force tender for the purchase of 110 aircraft of this class, will cost New Delhi 2 less than its foreign competitors.

    Kalashnikov Rifle Deal
    Drozhzhov also said that the contract between the Indian Defense Ministry and the Russian-Indian joint venture and on deliveries of Russian Kalashnikov assault rifles may be signed soon.

    "As for the Kalashnikov guns, for the first time in such a short time, we were able to create a joint venture [in the town of Korwa] and sign an agreement. It should be noted here that this was the political will of the two heads of state. We received a request for deliveries of more than 600,000 rifles. Currently, the joint venture is preparing a corresponding proposal for the Indian Defence Ministry. I think that these proposals from the joint venture should be sent to the Indian Defence Ministry in July. I hope that the corresponding contract between the joint venture and the Indian Defense Ministry will be signed [soon]", he announced.

    In March, Russia and India inaugurated a plant, dubbed Indo-Russia Rifles Private Limited, that would be producing AK-203 Kalashnikov assault rifles in Korwa, Uttar Pradesh. According to Director General of Russian state arms exporter Rosoboronexport Alexander Mikheev, the capacity of the plant would allow India to fully equip its forces with the rifles.

    Arms Orders in Total
    Drozhzhov stated that a large portfolio of orders for the supply of Russian weapons and military equipment to India is about $14 billion.

    "There are promising [Russia-India] joint venture projects. BrahMos has already proved to be very effective, a joint venture for the production of Ka-226 helicopters has been established, just recently a joint venture for the production of Kalashnikov assault rifles has been created", he said.

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    S-400 SAM for India - Page 6 Empty Re: S-400 SAM for India

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