India and Russia Signed Their Biggest Defence Deal – India Inks S-400 Missile Deal
On Monday, India and Russia signed their biggest defence deal in over two decades for S-400 long-range, surface-to-air missile systems but they have to deal with the challenge of transferring the $5.43 billion for the contract in the face of financial sanctions by the US.
On Friday, this deal was announced. This was a long-pending deal. It was formally announced in a joint statement after a meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin in New Delhi on Friday, will equip India with five regiments of the cuttingedge system that will strengthen air defences in the face of the air force’s depleting fighter squadrons.
The S-400 regiments will be delivered starting 2020 and are likely to be deployed to cover both the Pakistani and Chinese borders. Beijing incidentally has already taken delivery of the systems that are considered to be the biggest threat to western-origin combat aircraft.
While the deal was pushed through after hectic consultations at the top level, India will face the challenge of transferring money to Moscow for the deal. Typically, within days of signing a contract, a 15% advance is given to the foreign supplier to initiate production.