Russia and India have been collaborating on an increasing number of defense deals related to frigates, attack submarines, air defense systems, and avoidance or contravention of United States sanctions. Russia is reportedly preparing to begin work on two guided-missile frigates for the Indian Navy.
The ships will be built at Russia’s Yantar Shipyard in Kaliningrad as soon as India makes its first payment toward the $2.5 billion deal, which, according to the contract, is expected by the end of the month. India is expected to pay for the frigates in euros to avoid U.S. sanctions under the 2017 Countering America’s Adversaries Through Sanctions Act.
This law requires the U.S. to enforce economic punishment on India for executing a transaction above $15 million with Russia’s defense industry. Despite this risk, Indian Defense Minister Nirmala Sitharaman made clear that the U.S. law will not “impact the India-Russia defense cooperation.” Read More