Delivery Of Russian S-400 Missile Defence System On Track, India Makes 15 Per Cent Payment Through Special Mechanism

The delivery of $5 billion S-400 missile defence systems India has purchased from Russia remains on track with India having made a payment of $850 million for this advanced air defence system, reports Hindustan Times.

India has so far made 15 per cent payment that was made in September though a special mechanism worked out by the two sides to avert attracting sanctions under the Countering America’s Adversaries Through Sanctions Act (CAATSA) of the US.

US had expressed concern that the S-400 could capture electronic signatures of American-origin military equipment and aerial platforms used by India that would compromise their security.

India and Russia were forced to focus on alternative payment mechanisms to overcome the impact of potential US sanctions, including trade through a rupee-rouble mechanism or payments in euros for military hardware.

India and Russia had signed a deal worth an estimated $5.4-billion for five S-400 systems during the annual summit between Modi and Putin October 2018 and the first system was expected to be delivered by 2020 and all deliveries will be completed in a five-year period.

Washington was against the S-400 deal or other purchases of military hardware from Russia as it wants a bigger share of deals as India spends more money in modernising its defence capabilities.

Russia however, still accounts for about 60 per cent of India’s military hardware.

External Affair Minister S Jaishankar during a bilateral meeting held between US and India 26 June in New Delhi told US Secretary of State Mike Pompeo that, “India will go by its national interest while dealing with other countries, including the sanctions-hit Russia from whom New Delhi is purchasing the S-400 missile defence system.”