NEW DELHI (AP) — India signed a $5 billion deal to buy five Russian S-400 air defense systems on Friday despite a looming threat of U.S. sanctions on countries that trade with Russia’s defense and intelligence sectors.

The deal was signed in New Delhi during a visit by Russian President Vladimir Putin, who met with Indian Prime Minister Narendra Modi to discuss nuclear energy, space exploration and trade.

India has requested that the U.S. grant it a waiver for the deal from sanctions prescribed by the Countering America’s Adversaries Through Sanctions Act, a U.S. law passed in August 2017 that is intended to punish Russia for its annexation of Crimea and alleged interference in the 2016 U.S. elections.

The U.S. did not spare China from sanctions last month for purchasing its own Russian S-400 surface-to-air missile systems and fighter jets.

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

Jinnie Lee, a spokeswoman for the U.S. Embassy in New Delhi, declined to comment on whether India would be granted a waiver, but said in a statement that the sanctions were “not intended to impose damage to the military capabilities of our allies or partners.”

Officials with India’s external affairs and defense ministries confirmed the deal was signed after Putin and Modi made no reference to it during a news conference following their talks.

An 11-page joint statement made only passing mention, saying that “the two sides welcomed the conclusion of the contract.”

The deal will likely bolster the close relationship between India and Russia that dates back to the Cold War, when the U.S. tilted toward Pakistan, India’s neighbor and archrival. But it is also likely to strain ties with Washington.

India is the world’s largest importer of military hardware, according to Mumbai-based think tank Gateway House, and has depended on Russia for political support as well as billions of dollars in military hardware. Nearly 70 percent of India’s present-day defense equipment was procured from Russia, according to India’s Defense Ministry.

India’s acquisition of the S-400 long-range missile systems has been considered critical to countering a perceived threat from China, which is increasingly making economic inroads throughout South Asia, India’s traditional sphere of influence, according to military experts.

“It gives the capability to destroy targets inside another country. It’s a very important capability,” said retired Indian air force Air Marshal Nirdosh Tyagi.

India has also developed closer defense ties to the U.S. in recent years with joint military drills and defense sales.

India has signed more than $15 billion in U.S. defense contracts since 2008, including for C-130J and C-17 transport aircraft, P-8I maritime patrol aircraft, Harpoon missiles and Apache and Chinook helicopters.</s>The following content is sourced from external partners. We cannot guarantee that it is suitable for the visually or hearing impaired.

This content was published on October 5, 2018 1:25 PM

Russian President Vladimir Putin and India's Prime Minister Narendra Modi attend a presentation of a joint statement after their delegation level talks at Hyderabad House in New Delhi, India, October 5, 2018. REUTERS/Adnan Abidi

NEW DELHI (Reuters) - India agreed a deal with Russia to buy S-400 surface to air missile systems on Friday, the two sides said, as New Delhi disregarded U.S. warnings that such a purchase could trigger sanctions under U.S. law.

Although there was no public signing, the deal was sealed during President Vladimir Putin's ongoing visit to New Delhi for an annual summit with Indian Prime Minister Narendra Modi.

"The deal was signed on the fringes of the summit,” Kremlin spokesman Dmitry Peskov told Reuters. The contract is estimated to be worth more than $5 billion and gives the Indian military the ability to shoot down aircraft and missiles at unprecedented ranges.

The United States has said countries trading with Russia's defence and intelligence sectors would face automatic sanctions under a sweeping legislation called Countering America’s Adversaries Through Sanctions Act (CAATSA).

A State Department spokesperson said this week that the implementation of the sanctions act would be focussed at countries acquiring weapons such as the S-400 missile batteries.

Last month, the United States imposed sanctions on China's military for its purchase of combat fighters as well as the S-400 missile system it bought from Russia this year.

India is hoping that President Donald Trump's administration will give it a waiver on the weapons systems which New Delhi sees as a deterrent against China's bigger and superior military.

"The (two) sides welcomed the conclusion of the contract for the supply of S-400 long range surface to air missile system to India," India and Russia said in a joint statement at the end of the talks.

The two countries also signed eight agreements covering space, nuclear energy and railways at a televised news conference. "We always arrive to India with great pleasure as we know that we are surrounded here in the environment of very frank friendship, business cooperation," Putin said.

Russia will also help India in its plans to mount a manned space mission by 2022.

"India gives the highest priority to ties with Russia, in fact in a changing world, our ties have become more important," Modi said.

For all the warm words, ties with Moscow are a lot less central to Delhi than they were during the Cold War years, as India has diversified arms purchases, closing $15 billion of deals with the United States over the last decade.</s>India has signed a deal with Russia to acquire the S-400 air defence missile system, despite the possibility such a move could trigger US sanctions.

Indian Prime Minister Narendra Modi and Russian President Vladimir Putin announced the $5bn (£3.8bn) deal in Delhi on Friday.

The S-400 is one of the most sophisticated surface-to-air defence systems in the world. It has a range of 400km (248 miles) and can shoot down up to 80 targets simultaneously, aiming two missiles at each one.

India's neighbour China also has the same system - the two countries fought a war in 1962 and routinely see skirmishes on their border. So for India it was imperative to boost its defence capabilities - especially in view of a possible two-front conflict, with Pakistan and China.

Rajiv Nayan, defence expert at the Institute for Defence Studies and Analyses think-tank, believes India had to take "a calculated risk".

"India needs to look after its strategic interests. An air defence missile defence system was the need of the hour. The US has said that going ahead with the deal would attract sanctions - but Delhi cannot be seen coming under pressure," he told the BBC.

Relations between the US and Russia have been strained since Moscow annexed Crimea from Ukraine in 2014. Russia's alleged meddling in the 2016 American presidential elections has further fuelled tensions.

Washington has put several Russian firms under sanctions. The Countering America's Adversaries Through Sanctions Act (Caatsa) was introduced in 2017 to target Russia, Iran and North Korea with economic and political sanctions.

It also prohibits any country from signing defence deals with these nations.

But US President Donald Trump has the power to provide waivers to some countries. India was hoping to secure one, but recent statements from some Trump administration officials have sent mixed signals.

"I can't sit here and tell you that they [India] would be exempt, that we would use that waiver - that will be the decision of the president if he is faced with a major new platform and capability that India has acquired from Russia," Randall Schriver, assistant secretary of defence for Asian and Pacific security affairs, recently said.

Defence Secretary Jim Mattis and Secretary of State Mike Pompeo also failed to mention the waiver during their visit to Delhi in September.
• US sanctions on China over Russia weapons

The S-400 is an important boost to India's defence because its air force is facing a shortage of squadrons. tIts squadron strength has depleted to 31 - largely owing to ageing Russian aircraft. It would need 42 squadrons in the event of war with both China and Pakistan.

The new surface-to-air defence system will enable the air force to detect and destroy missiles. Mr Nayan says India already operates defence systems "manufactured by Russia and it make sense to continue with the systems we are familiar with".

Delhi's decision to go ahead with the deal also signals an attempt to inject a greater degree of balance in its foreign policy, according to Pratyush Rao, associate director for India and South Asia at Control Risks consultancy.

"After investing significant political capital in strengthening US-India ties during Barack Obama's presidency, Mr Modi is now seeking to calibrate relations with the US under the Trump administration.

"Given the high degree of unpredictability associated with the Trump administration, Delhi needed to hedge its bets," he said.
• Long-range surveillance radar tracks objects and relays information to command vehicle, which assesses potential targets
• Launch data are sent to the best placed launch vehicle and it releases surface-to-air missiles

Mr Trump recently described India as "tariff king" and said it wanted to have a trade deal with the US to keep him happy. The statement hasn't gone down well in Delhi's diplomatic circles.

It's not surprising that India has been trying to improve ties with powers like Russia and China in the new world order under Mr Trump.

India - which makes very few of its own weapons - is the world's biggest defence buyer, and Russia supplies most of its military equipment and spare parts.

"India had to assure Russia that it still values Moscow as an important defence and strategic partner and signing this deal was a demonstration of that," Mr Rao said.

He added that this was a "Catch-22 situation for Delhi with it having to walk the diplomatic tightrope between a trusted but waning partner [Russia] and a growing yet temperamental partner [US]".

Indian officials now hope that Washington will grant a waiver for Delhi.

Mr Nayan believes that backroom negotiations with Washington may result in such a move. But it may not be easy because the US has its own Catch-22 situation to deal with.

The US has been clear about sanctioning countries that sign defence deals with Russia. It sanctioned China for buying S-400s in September.

Nato ally Turkey is also in the process of acquiring the same system, and many believe that's a red line the US doesn't want Turkey to cross.

If the US allows India a waiver, others countries will press for similar concessions.

Meanwhile, Washington cannot afford to ignore India's increasing defence equipment requirements. It has increased its own arms exports to India more than five times in the past five years, taking its share in Delhi's defence procurement to 15%.

"Having painstakingly built up the defence partnership, Washington would want to insulate it's burgeoning defence trade with India through some kind of a solution," Mr Rao says.

Mr Modi's administration is also likely to try to defuse tensions. He will seek re-election next year and will not want a new controversy that could affect his campaign.

"If the US imposes sanctions on India, it will give more ammunition to India's opposition parties ahead of the elections. It will open Mr Modi to further attacks over his management of foreign policy coming days after perceived flip-flops on holding talks with Pakistan," Mr Rao added

Mr Modi is already under fire from the opposition because of the controversial Rafale jet deal.

He signed a government-to-government deal with France in 2016 to buy 36 Rafale warplanes manufactured by Dassault Aviation. Rahul Gandhi, the leader of the main opposition Congress party, has alleged that Mr Modi "favoured" an Indian company that is part of the French deal.

Mr Modi's ministers have denied the allegation, but the issue continues to dominate headlines in India.

Both Mr Modi and Mr Trump have reasons to avoid falling out. The big question now is whether Mr Trump will see it Mr Modi's way.</s>NEW DELHI: As India and Russia prepare tosystem on Friday, New Delhi is playing the greatest balancing act of all — its defence needs and a strategic relationship with Russia with sanctions and a growing strategic relationship with US. It wasn't this bad even during the Cold War, when despite cries of non-alignment, India was squarely on the Russian side of the field.Vladimir Putin landed in Delhi on Thursday evening and drove straight to a dinner with Prime Minister Narendra Modi. The official programme begins Friday morning with a breakfast followed by delegation level talks. A large number of agreements are expected to be signed, which is normal for India-Russia summits.All eyes will be on the defence, frigates and assault rifles. The US only last week slapped sanctions on China for buying the same S-400s.Putin's visit comes almost exactly a month after the first 2+2 dialogue with the US, where James Mattis and Mike Pompeo discussed exactly this scenario with Nirmala Sitharaman and Sushma Swaraj. India made it clear it needed the S-400 and had a long legacy of sourcing defence equipment from Russia, which New Delhi was unwilling to compromise. The US side reassured New Delhi that the CAATSA law (Countering America's Adversaries through Sanctions Act) would not apply to legacy platforms or spares, but new buys could be impacted.What is less known is that Mattis and Pompeo spent over an hour with NSA Ajit Doval for a deeper conversation on two contentious issues — imports of Iranian oil post sanctions that will kick in from November 4, and the S-400 from Russia. Details of the meeting are not known, but sources said both sides emerged with a better understanding of each other.The Trump administration however, still has to certify to Congress that India is reducing its weapons buys from Russia. That is a condition for a waiver on CAATSA, a provision written into the otherwise inflexible law by sustained diplomacy by the Trump administration. The waiver provision will be available to India, Indonesia and Vietnam. But, as Randy Shriver, US undersecretary in the Pentagon said, India should not treat this as a blanket waiver.“We urge all of our allies and partners to forgo transactions with Russia that would trigger sanctions under CAATSA,” a State Department spokesperson said on Wednesday when asked about India's plan to purchase multi-billion S-400 missile defence system from Russia. “The Administration has indicated that a focus area for the implementation of CAATSA Section 231 is new or qualitative upgrades in capability - including the S-400 air and missile defence system,” the spokesperson said.India is in a slightly difficult place — the US relationship is vital for India to balance China and its aggressive growth. It's also the economic partner of choice for Indian industry. Russia however remains an old partner, with a huge piece of the Indian defence pie. But its closeness to China is a problem that India is very uncomfortable about.India has been reducing its weapons buys from Russia. But India does not want to ditch the deep partnership with Russia. In fact, India has increased its investments in Russia's energy sector, oil minister Dharmendra Pradhan officially asking Russia to partner in India's effort to gassify its economy.Russia is also opposed to India' Indo-Pacific policy, and has unequivocally opposed it, preferring to describe the region as Asia-Pacific, because of its's anti-China connotations.Russia enjoys support from across the political spectrum — for instance, Sonia Gandhi, head of the opposition UPA, who doesn't travel too much, went out of her way to travel to St Petersburg recently for a women's conference. If this was in the US or in the bigger European countries, it would have been politically controversial.</s>Russian President Vladimir Putin will oversee the signing of a $5 billion-deal to supply Delhi with S-400 air defence systems.

 "The president is leaving for India on October 4," Putin's top foreign policy aide Yury Ushakov told reporters.

 ​"The key feature of this visit will be the signing of the agreement to deliver S-400 air defence systems," he said. "The value of the contract will be more than USD 5 billion."

 Moscow has been negotiating to sell the S-400 long-range surface-to-air missiles to India for months.

 The sale has irked India's defence partner Washington, which has wanted to wean the Centre off Russian technology, and a senior Pentagon official said in August that sanctions against India would come under consideration if its purchase goes through.</s>NEW DELHI (Reuters) - India agreed a deal with Russia to buy S-400 surface to air missile systems on Friday, the two sides said, as New Delhi disregarded U.S. warnings that such a purchase could trigger sanctions under U.S. law.

Although there was no public signing, the deal was sealed during President Vladimir Putin’s ongoing visit to New Delhi for an annual summit with Indian Prime Minister Narendra Modi.

“The deal was signed on the fringes of the summit,” Kremlin spokesman Dmitry Peskov told Reuters. The contract is estimated to be worth more than $5 billion and gives the Indian military the ability to shoot down aircraft and missiles at unprecedented ranges.

The United States has said countries trading with Russia’s defence and intelligence sectors would face automatic sanctions under a sweeping legislation called Countering America’s Adversaries Through Sanctions Act (CAATSA).

A State Department spokesperson said this week that the implementation of the sanctions act would be focused at countries acquiring weapons such as the S-400 missile batteries.

Last month, the United States imposed sanctions on China’s military for its purchase of combat fighters as well as the S-400 missile system it bought from Russia this year.

India is hoping that President Donald Trump’s administration will give it a waiver on the weapons systems which New Delhi sees as a deterrent against China’s bigger and superior military.

“The (two) sides welcomed the conclusion of the contract for the supply of S-400 long range surface to air missile system to India,” India and Russia said in a joint statement at the end of the talks.

The two countries also signed eight agreements covering space, nuclear energy and railways at a televised news conference. “We always arrive to India with great pleasure as we know that we are surrounded here in the environment of very frank friendship, business cooperation,” Putin said.

Russia will also help India in its plans to mount a manned space mission by 2022.

“India gives the highest priority to ties with Russia, in fact in a changing world, our ties have become more important,” Modi said.

For all the warm words, ties with Moscow are a lot less central to Delhi than they were during the Cold War years, as India has diversified arms purchases, closing $15 billion of deals with the United States over the last decade.</s>The S-400 Triumph air defence system integrates a multifunction radar, autonomous detection and targeting systems, anti-aircraft missile systems, launchers, and command and control centre.

With the signing of this deal, India is now at risk of sanctions from the US under the contentious CAATSA act. The US has threatened countries with sanction s if they deal with with Russia in defence matters.

[S-400 missile deal: Will India be granted waiver from CAATSA?]

Modi and Putin earlier today met for the 19th India-Russia annual bilateral summit during which they deliberated on a host of bilateral, regional and global issues. The summit began at Hyderabad House here this morning.

"A relationship radiating warmth and affection! PM @narendramodi welcomed @KremlinRussia_E Vladimir Putin for the 19th India-Russia Annual Bilateral Summit continuing the series of fruitful engagements this year!" Ministry of External Affairs spokesperson Raveesh Kumar tweeted along with a picture of the two leaders at Hyderabad House.

Putin had a one-on-one meeting with the prime minister after his arrival here on Thursday evening. Modi had hosted a private dinner for the visiting dignitary. The Russian president, who leaves on Friday evening, is accompanied by a high-level delegation, including Deputy Prime Minister Yuri Borisov, Foreign Minister Sergey Lavrov and Trade and Industry Minister Denis Manturov. (Image courtesy - ANI/Twitter)

Russian President Vladimir Putin arrived in Delhi on Thursday on a two-day visit to hold the annual bilateral summit with Prime Minister Narendra Modi. The main focus of the visit is in fact the signing of the USD 5 billion worth deal to purchase S-400 Triumf air defence missile systems from Russia which will significantly bolster India's defence capabilities. (Image - ANI/Twitter)</s>This story is from October 4, 2018

External affairs minister Sushma Swaraj receives Russian President Vladimir Putin

NEW DELHI: Russian President Vladimir Putin arrived here on Thursday on a two-day visit to hold the annual bilateral summit with Prime Minister Narendra Modi . Putin, who is accompanied by a high-level delegation, was received by External affairs minister Sushma Swaraj The 19th India-Russia Annual Bilateral Summit will take place here on Friday during which Modi and Putin are expected to review bilateral defence cooperation in the wake of the US sanctions against Russian defence majors.The two leaders are also likely to deliberate on key regional and global issues, including US sanctions on import of Iranian crude oil.The focus during the visit will be on the S-400 Triumf air defence missile system agreement, with a top Kremlin aide saying Tuesday that Russian President Putin will oversee the signing of the $5 billion deal.</s>PM Modi and Russian president Vladimir Putin are expected to review bilateral defence cooperation in the wake of the US sanctions against Russian defence majors. (Photo: Twitter | @narendramodi)

New Delhi: Russian President Vladimir Putin arrived in New Delhi on Thursday on a two-day visit to hold the annual bilateral summit with Prime Minister Narendra Modi.

Putin, who is accompanied by a high-level delegation, was received by External Affairs Minister Sushma Swaraj.

"Long standing and time-tested friendship. Upon his arrival in India for the #IndiaRussia Annual Bilateral Summit, @KremlinRussia_E Vladimir Putin was warmly received by EAM @SushmaSwaraj #DruzbaDosti," Ministry of External Affairs Spokesperson Raveesh Kumar tweeted.

Prime Minister Narendra Modi took to Twitter and welcomed President Putin to India and said, "Looking forward to our deliberations, which will further enhance India-Russia friendship."

PM Modi tweeted the same in Russian.

The 19th India-Russia Annual Bilateral Summit will take place in Delhi on Friday during which PM Modi and Russian president Vladimir Putin are expected to review bilateral defence cooperation in the wake of the US sanctions against Russian defence majors.

The two leaders are also likely to deliberate on key regional and global issues, including US sanctions on import of Iranian crude oil.

The focus during the visit will be on the S-400 Triumf air defence missile system agreement, with a top Kremlin aide saying Tuesday that Russian President Putin will oversee the signing of the USD 5 billion deal.</s>The following content is sourced from external partners. We cannot guarantee that it is suitable for the visually or hearing impaired.

This content was published on October 5, 2018 11:30 AM

Russian President Vladimir Putin and India's Prime Minister Narendra Modi attend a presentation of a joint statement after their delegation level talks at Hyderabad House in New Delhi, India, October 5, 2018. REUTERS/Adnan Abidi

NEW DELHI (Reuters) - India agreed a deal with Russia to buy S-400 surface to air missile systems on Friday, the Kremlin said, as New Delhi disregarded U.S. warnings that such a purchase could trigger sanctions under U.S. law.

Although there was no public signing, the deal was sealed during President Vladimir Putin's ongoing visit to New Delhi for an annual summit.

"The deal was signed on the fringes of the summit,” Kremlin spokesman Dmitry Peskov told Reuters. The contract is estimated to be worth more than $5 billion and gives the Indian military the ability to shoot down aircraft and missiles at unprecedented ranges.

But the United States has said countries trading with Russia's defence and intelligence sectors would face automatic sanctions under a sweeping legislation called Countering America’s Adversaries Through Sanctions Act (CAATSA).

A State Department spokesperson said this week that the implementation of the sanctions act would be focused at countries acquiring weapons such as the S-400 missile batteries.

Last month, the United States imposed sanctions on China's military for its purchase of combat fighters as well as the S-400 missile system it bought from Russia this year.

India is hoping that President Donald Trump's administration will give it a waiver on the weapons systems which New Delhi sees as a deterrent against China's bigger and superior military.

After summit talks between Putin and Modi, the two countries signed eight agreements covering space, nuclear energy and railways at a televised news conference.
Russian President Vladimir Putin arrives in India for a summit meeting with Indian Prime Minister Narendra Modi.