‘First division will be delivered by the end of 2021’
Ahead of Russian President Vladimir Putin’s visit to India early next month, Moscow has started deliveries of S-400 air defence systems to India.

This risks the possibility of sanctions from the U.S. under the Countering America’s Adversaries Through Sanctions Act (CAATSA) which would come up for discussion at the India-U.S. 2+2 ministerial dialogue, also scheduled for early December.

In October, stating that the delivery was on track, IAF Chief Air Chief Marshal (ACM) V. R. Chaudhari had said the “first regiment should be inducted within this year.”

Mr. Putin is scheduled to visit India in the first week of December for the annual summit and the inaugural India-Russia 2+2 ministerial dialogue is likely to be held a day before or on the day of the summit itself, an official source said. Deals are expected in defence, trade and energy, apart from the focus on regional issues especially the developments in Afghanistan,

On the defence front, which is a major pillar of cooperation, few big ticket pending deals are lined for conclusion which include Ka-226T utility helicopters, Ak-203 assault rifles and Igla-S Very Short Range Air Defence (VSHORAD) systems. Some of these could see conclusion during the summit, a defence official said.

India recently made an emergency procurement of the Igla-S systems worth ₹300 crore and signed a deal for off the shelf procurement of 70,000 Ak-103 assault rifles.

The U.S. has so far remained non-committal on a waiver to India under CAATSA, with some officials cautioning New Delhi to move away from the deal while others called for a waiver to India. In this backdrop, Prime Minister Narendra Modi on Saturday met a high-power U.S. Congressional delegation, led by Senator John Cornyn, and discussed “issues related to the developments in South Asia and the Indo-Pacific region.”

$5.43 billion deal

In October 2018, India and Russia signed a $5.43 billion deal for five S-400 regiments. Ahead of the scheduled deliveries, two Indian Air Force (IAF) teams have already been trained on the system by the manufacturer Almaz Antey, in Russia.

Defence trade between India and Russia was $15 billion in the last three years because of several big ticket deals.

The deal saw some initial delays as both sides looked to secure the payments from U.S. sanctions. That was subsequently resolved.

IAF Chiefs in the past had termed the S-400 as a game changer once inducted and will also partly make up for the dwindling fighter strength of the force especially in the backdrop of growing two-front threat from China and Pakistan.

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In its latest report, the Congressional Research Service (CRS), the independent research arm of the US Congress, has said that India is keen on partnerships and joint production plans in the technology sector, whereas America expects some more reforms in India’s defence policy. Also, the US wants India to adopt a flexible attitude towards foreign investment in its defence sector.

The report warns that due to the S-400 deal, the US may impose sanctions on India under the ‘Counting America’s Adversaries Through Sanctions Act’ or the law governing prohibitions.

However, it may be noted that the CRS report is not an official report of the US Congress. It is prepared for MPs by independent experts so that they make decisions after understanding everything. Nevertheless, the warning given about the India-Russia deal in the report is definitely a matter of concern.

Instalment Paid

India and Russia are also strategic partners and New Delhi has been dealing with Moscow to meet its defence needs. In October 2018, India signed a five-billion dollar deal with Russia to buy four S-400 defence systems, ignoring the Trump administration’s warning. India also paid $800 million to Russia in 2019 as its first instalment.

America’s warning is also a matter of concern for India because recently, the US has imposed sanctions on Turkey which bought the S-400 system. Although America’s relationship with India is better than Turkey, Biden’s attitude towards New Delhi will be known only later.

On the other hand, Russia has made it clear that American threats will not have any effect on this deal. Last month, Russia said that despite the threat of US sanctions, the first consignment of the S-400 missile system would be supplied on time.

The S-400 is known as Russia’s most advanced long-range surface-to-surface missile.

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India will press Russia to consider expediting the delivery of the S-400 Triumf anti-missile system during defence minister Rajnath Singh’s three-day visit to Russia starting Monday. The urgency comes amid heightened tensions along the India-China border.

Moscow is believed to have delayed delivery of the $5.4-billion system to December 2021 due to Covid-19 constraints. India had completed large payments for the system last year. China, which also enjoys strong defence ties with Russia, has already acquired the S-400 system from its northern neighbour and this fact may have added to India’s concerns. Besides, sources said, armed forces have been told to be ready for all eventualities. The government has begun the process of filling up gaps in defence preparedness, making good pending purchases, shoring up supplies and improving inventory profile based on worst-case scenarios, including a two-front fight.

According to people aware of the details, Russia appears to have bunched the delivery of India’s S-400 with a couple of other countries.

New Delhi is keen to explore if a delinking of delivery is possible and a faster schedule can be worked out given the historical military relationship between the two countries.

Reliability of supplies is the other key issue on top of Singh’s agenda. There are two parts to the segment — one, speed up availability of spares for existing Sukhoi and MiG fleets and second, gain an assurance that Indian supplies will not be impacted in changing political environment.

ET has learnt that this issue was discussed in detail at the highest level after India lost 20 soldiers to violence on the Line of Actual Control (LAC) with China. At that point, it was felt that a quick reach-out to Russia was necessary for defence preparedness.

While the Moscow Victory Day parade was a planned event, there were doubts of a ministerial-level representation because of the Covid-19 pandemic. However, after consultations with Prime Minister Narendra Modi, it was decided that Singh must undertake the visit as that was the best opportunity to engage the Russian government at this critical juncture.

Chinese defence minister Wei Fenghe is also likely to be present at the event. Beijing has been pushing Moscow to deepen defence cooperation and obtain access to high-end Russian technology, especially in making jet engines. China, in fact, has been quite keen to develop its defence industry on the back of Russian capabilities.

Singh is slated to have a separate bilateral meeting with his Russian counterpart Sergei Shoigu during his visit. Much of these issues will discussed at length with him, especially on hastening deliveries for weapon systems and spares. He is also to meet deputy prime minister Yury B

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