New Delhi (Agency): India is set to receive two warships built in Russia in the next few months, as reported by Bloomberg. This news comes at a time when there’s a bit of tension between India and the US. The big question is whether the US will sanction India under a law called CAATSA, which allows for sanctions against countries buying Russian military equipment. The first Russian-made frigate is expected to arrive in India in December, with the second following early next year.
The delivery of these ships has been delayed by about two years due to the conflict in Ukraine, according to defense officials who wished to remain anonymous. These two warships are part of a deal India made with Russia in 2018 for four ships. While two are being built in India with Russian collaboration, the ones from Russia faced delays. A significant cause of the delay was the need for gas turbines, originally sourced from Ukraine, which had to be obtained from another country after trade stopped due to the war.
Furthermore, the war led to Russia being excluded from the international payment system, raising questions about how India would pay for the warships. However, India and Russia have reportedly found a solution that avoids US sanctions and ensures payments can continue. Despite these challenges, India’s Ministry of External Affairs, along with the Indian Navy and Defense Ministry, have not commented on these developments.
India has started using its currency, the rupee, for arms purchases from Russia. For buying crude oil from Russia, India is exploring other payment methods, including using the UAE’s currency, the dirham. Despite billions of dollars being stuck due to payment issues, India has refused to use the Chinese yuan for payments because of tense relations with China.
The US has so far not taken any action against India for its dealings with Russia. This includes when India acquired the S-400 missile defense system from Russia; no sanctions were imposed due to the strategic relationship between India and the US. Russia continues to be India’s largest supplier of military hardware, making up 36% of its arms imports. However, India has been diversifying its sources, buying more from countries like the US and France, as noted by the Stockholm International Peace Research Institute (SIPRI).