- Deliveries of Russian military supplies to India have stopped due to payment issues that violate US sanctions.
- India has been unable to settle a $2 billion bill for weapons, and Russia has stopped supplying a pipeline of $10 billion worth of spare parts and two S-400 missile-defense system batteries.
- India is unable to settle the bill in US dollars due to concerns about secondary sanctions, while Russia remains unwilling to accept rupees due to exchange-rate volatility.
- Possible solutions include using euros and dirhams, the currencies used to pay for Indian imports of discounted Russian crude, or a mechanism for Russia to offset purchases of Indian imports against the price of the weapons.
- The Indian Air Force, which depends on a Russian fleet of fighters and helicopters, is among the worst hit from the disruption in supplies from Moscow.
Russian Arms Sales to India Stall on Fears Over US Sanctions
Russian deliveries of military supplies to India have ground to a halt as the countries struggle to find a payment mechanism that doesn’t violate US sanctions, according to Indian officials with knowledge of the matter.
Sudhi Ranjan Sen
