Impact of US economic sanctions on Indian-Russian arms trade

Russia’s weapons supply to India is stalled

Moscow (Russia) – After Russia invaded Ukraine, several Western countries, including the US, imposed economic sanctions on the country. The situation has also affected India. There is a struggle between Russia and India to figure out a payment mechanism that does not violate US sanctions, according to the Indian officials.  Russia has halted the supply of spare parts as well as two S-400 missile defence system batteries worth Rs 1,000 crores, according to officials who do not want to be identified considering the sensitivity of the issue. As a result of the volatility of exchange rates, Russia does not accept payments in Indian rupees, while India does not want to pay in Rubles (the currency of Russia). Due to this, the arms trade between these two countries has stalled. Bloomberg magazine published this news.

In this context, India’s National Security Adviser Ajit Doval discussed the issue during his visit to Moscow. Along with this, the Deputy Prime Minister of Russia, and Foreign Minister of India Dr S Jaishankar also discussed this. It was discussed between the two leaders that a solution would be found at the earliest. Against this backdrop, the two countries are now in discussions to transact through the Dirham (the currency of the United Arab Emirates) and the Euro (the currency of Europe).