On Friday, October 5, India and Russia signed a long pending $5 billion S-400 missile deal during 2-days visit of Russian President Vladimir Putin to India.
S-400 missile deal is the biggest defence deal of India in last two decades after deal of Sukhoi fighter planes SU-MK 30 was signed in 1996. Delivery of missile system will start in 2020.
The deal was formally announced in a joint statement after meeting between Prime Minister Narendra Modi and Russian President Vladimir Putin. India signed to buy five regiments of S-400 missile system that may be deployed along India’s border with Pakistan and China.
China has already started getting S-400 system from Russia and delivery will be completed by the end of the year.
India signs $5 billion S-400 missile deal with Putin.
— NDTV (@ndtv) October 6, 2018
As per the deal, India has to pay 15 percent of the total deal value in advance, after signing of the deal, to the manufacturer for completion of the production. But, amid threats of sanctions from US under CAATSA on significant transactions with Russia, on defence purchase, may make transactions part difficult for India.
US have threatened to sanction the countries that will share Russian military equipments and intelligence, under CAATSA (Countering American Adversaries through Sanctions Act).
As quoted by PTI news agency, a US state department spokesperson said, “The S-400 air and missile defence system would be a particular focus for the countering America’s Adversaries Through Sanctions Act (CAATSA).
US sanctions may bar the Indian banks to access the US financial system to make payments in US dollar.
Defence minister of India Nirmala Sitharaman have already declared that India will not follow sanctions under CAATSA as it is an internal law of US.
In last month US sanctioned China under CAATSA for purchase of S-400 missile system and Sukhoi fighter Planes from Russia. CAATSA was signed by US President Donald Trump last year in August to make it a law.