No mention of S-400, S-500, Su-57, Why India and Russia put defence deals on hold?
The India-Russia joint statement omits S-500, Su-57 and defense deals as war sanctions on Ukraine, SWIFT ban and ruble payment delay the deals.
Vladimir Putin with Narendra Modi at the 2nd Russia-India Summit in Delhi.
The joint statement published after the 23rd India-Russia Summit held in New Delhi on December 4-5 shocked political experts, geostrategic experts and those who closely follow the details of defense agreements in the world. There was no mention of the advanced air defense system S-500, the technology transfer of the S-400, or the fifth-generation stealth fighter Su-57. In fact, there was no mention of defense cooperation at all. The most unexpected development took place during the official visit of Russian President Vladimir Putin.
India-Russia defense cooperation
Previously, officials from both sides talked a lot about the technology transfer of the air defense system S-400, and it was decided to commission the government-controlled Bharat Dynamics Limited (BDL) for this purpose. Similarly, the purchase of the Su-57 and the advanced system of the S-500 were discussed. Neither could find any mention in the joint statement. The S-400 system was widely praised for its performance in Operation Sindoor and was called a “game changer” in the four-day military conflict with Pakistan in May. Similarly, the Su-57 was thought to be better and cheaper than the US-made F-35. Donald Trump offered single-seat, single-engine, supersonic stealth attack aircraft manufactured by Lockheed Martin when Prime Minister Modi visited the US in February this year. The Indian government has remained tight-lipped against this proposal.
(Air defense system S-400)
S-500 air defense system India
Analysts believe that these agreements were not signed due to the sanctions imposed by the United States on Russia due to the Ukraine War. Payment in US dollars is not possible; It cannot be processed through the Society for Worldwide Interbank Financial Telecommunications (SWIFT) network. SWIFT is a global system for banks to send international payment instructions using standardized messages. Russia has been banned from using the system, which works like a secure messenger, transferring details such as account numbers and amounts between different banks and information on correspondent banking relationships for the movement of funds.
Russia must be paid in its own currency, the ruble, which is about equal to India’s currency. While writing this news, the ruble was trading at 1.18 rupees. India, with a trade deficit of $64 billion, does not have enough rubles to pay the huge sum that could accrue from the purchase of any of this military hardware. Under this pressure, both sides put defense agreements on the back burner for now.
(Russian fifth generation stealth fighter aircraft Su-57)
Vladimir Putin’s Visit to India
This is one of the reasons why Moscow is increasingly interested in buying goods from India. Moscow has shown interest in purchasing seafood, aquaculture products and meat from India. Speaking to the Indian media, Vladimir Putin said that he instructed his officials to see what can be purchased from New Delhi. However, it will take time and even after that, it will be difficult for the two countries to completely fill the trade deficit.
However, the two countries signed a Shipbuilding Cooperation Framework covering joint ship design, technology transfer, local production and maritime infrastructure. With this, India can build ice-class ships.
