India is in the final stages of procuring four Talwar class stealth frigate from Russia amid threat of sanctions from US on defence purchase from Russia. A week after India-US held 2+2 dialogue, India paved the path to buy four warships from Russia worth $2.2 Billion. The agreement between the governments of India and Russia will be signed when Prime Minister Narendra Modi and Russian President Vladimir Putin will meet in Delhi in October during the annual summit of both countries.
The warship deal is long pending since 2016. Two of the warships will be bought directly from Russia and will be constructed at Yantar Shipyard and remaining two will be constructed at Goa Shipyard Limited in India.
Chairman of Goa Shipyard Limited, Shekhar Mita said, “After the contract is signed, Russia will take four years to deliver the two warships. We will take six years to build the first warship and one more year to deliver the second”.
— ET Politics (@ETPolitics) September 17, 2018
Talwar class frigates are stealth warships. These warships, Project 11356 frigate and will be powered by Gas turbine engines, made by a Ukrainian firm. Indian Navy has a total of 6 stealth warships, among them three are Talwar class and three are Teg class. All these were brought from Russia between the years 2003 and 2013.
In month of August a delegation from India visited Russia to finalize the deal and a delegation from Russia visited Goa Shipyard Limited and was satisfied with the facilities to manufacture warships.
As reported by ET, India could make the payment through the Rupee-Rouble route. As Indian banks may face the difficulties or may not be able to transfer the payment to Russian defence firms, if US sanctions India on defence purchase from Russia.
Apart from warships, India is in process of buying S-400 missile defence system for Rs. 39,000 crore from Russia, for which US has already threatened to sanction India, if India goes ahead to purchase it. On defence purchase from Russia, US may sanction India under CAATSA (Countering American Adversaries through Sanctions Act).