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PM Modi hosts dinner for Russian President Putin

07 October 2018

"The sides welcomed the conclusion of the contract for the supply of the S-400 Long Range Surface to Air Missile System to India", a joint statement said on Friday.

Speaking at the India-Russia Business Summit in New Delhi this evening, Mr Modi said structural reforms of the last four years by the NDA government have led to this. The official also asserted that the negotiations for S-400 precede U.S. sanctions against Russian Federation by a long period.

Putin, along with Prime Minister Narendra Modi, will hold the 19th India-Russia annual bilateral summit.

Alluding to the fact that CAATSA is only a way to grab larger part of the Indian defence pie, Ambassador Trigunayat said, "S-400 is essential for us".

The contract was signed during President Vladimir Putin's trip to India.

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Russian Federation has been pushing for this mode of payment for a while but India has been reluctant given the depreciation in Ruble in the past years. "We can not prejudge any sanctions decisions".

"If the US thinks India is an important partner in the Indo Pacific, they will find a way out", said political analyst Manoj Joshi at the Observer Research Foundation in New Delhi, pointing out that India is not bound to follow USA law.

If the U.S. does impose sanctions on India, it is unclear how India could pay Russian Federation for the military equipment, since the law bars dollar-denominated financial transactions.

Putin and Indian Prime Minister Narendra Modi hugged as they went into talks in the Indian capital, underlying the apparent warm rapport that the two strongmen leaders have built up in recent years.

Russia's most advanced long-range anti-aircraft missile systems will reportedly cost India more than $5 billion.

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Russian Federation and India also made agreements relating to railways, fertilisers and space. Faced with public discontent, President Vladimir Putin proposed several measures - that were adopted by the State Duma - to soften the pension reform, including lowering the pension age hike for women to 60.

Addressing the businesses, Putin said the economic cooperation between the countries is growing at a healthy rate.

India has requested that the USA grant it a waiver for the deal from sanctions prescribed by the Countering America's Adversaries Through Sanctions Act, a US law passed in August 2017 that is meant to punish Russian Federation for its annexation of Crimea and alleged interference in the 2016 US elections.

"The sides noted the importance of further widening of energy cooperation between India and Russia taking into account the Indian side's interest in Russian energy assets, including natural gas, as well as in implementation of prospective joint projects in the field of renewable energy sources", the statement said.

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PM Modi hosts dinner for Russian President Putin