(5 Oct 2018) India on Friday signed a 5 billion US dollar deal to buy Russian S-400 air defense systems despite a new US law ordering sanctions on any country trading with Russia's defense and intelligence sectors.
The deal was signed in New Delhi following bilateral talks between visiting Russian President Vladimir Putin and Indian Prime Minister Narendra Modi.
The sale of Russian long-range surface-to-air missile systems is a sticking point as it is unclear whether India will receive a waiver from Washington on sanctions intended to punish Russia for its annexation of Crimea in 2014 and alleged interference in the 2016 US elections.
During his visit to India last month, US Secretary of State Mike Pompeo said discussions were continuing over whether to grant India waivers from sanctions on Russia and Iran, India's second-largest oil supplier, adding that India had committed to purchasing more energy products and aircrafts from the US to reduce their trade deficit.
China was not spared from sanctions last month, when it purchased Russian fighter jets and surface-to-air missile equipment.
If the US 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.
Moscow-based International Affairs expert Vladimir Sotnikov told the Associated Press he believes India could proceed with the payment using rupees and dollars to try to circumvent sanctions.
"I do not think that India would succumb to US pressure over the purchasing of the armaments from Russia," Sotnikov said in an interview with the Associated Press on Friday.
He added, "India has a very sophisticated policy of separating the relationship between India and the US, and India and the Russian Federation."
Historically the two countries have a close relationship dating back to the Cold War, when the US tilted toward Pakistan, India's neighbor and archrival.
India 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.
The country is now looking to upgrade and diversify its capabilities, and sees the S-400 missile systems as a game-changer.
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