New Delhi (Sputnik): Despite choosing the Euro as the currency of payment for arms deals with Russia, according to reports, the US may go ahead with the imposition of sanctions under the Countering American Adversaries Through Sanctions Act (CAATSA) on India, according to Amit Cowshish, a former financial adviser to the Indian Defence Ministry.
Cowshish, nevertheless, said it is good that the two countries finalised the much-needed payment mechanism that will not only pave the way to materialise defence deals that are in the pipeline, but also "prevent disruption of supplies under the ongoing contracts".
"This does not eliminate or even diminish the possibility of the US going ahead with imposing sanctions as mandated by CAATSA," Cowshish emphasised.
Cowshish, who spent years in the Indian defence audit office, is uncertain about whether the US will tone down its posture or find an alternative way out of the imbroglio without compromising its avowed stance in the face of the unlikelihood of India going back on the $5.43 billion deal or severing its defence ties with Russia.
"Going by the recent statements emanating from the US and India's stand on the issue of procurement of S-400 from Russia, reiterated by India's External Affairs minister during Secretary of State Mike Pompeo's visit, I am afraid we have not heard the last of this issue," Cowshish further warned
Indian Foreign Secretary Gokhale, while briefing reporters in the Japanese city of Osaka about the Indian prime minister and US president’s meeting, chose to reiterate India's viewpoint on its S-400 purchase, saying it remains unchanged. Sitting alongside US Secretary of State Mike Pompeo, Jaishankar said that New Delhi will follow its "national interest" with regards to the deal.
At the same time, Russia's Federal Service for Military-Technical Cooperation said on Wednesday that deliveries of S-400 Triumf missile systems to India "are planned to start after 2020, in accordance with the agreement with our partners". The service also stated that "issues with payment have been resolved".
India and Russia, in 2018, inked a contract for the delivery of S-400 systems worth $5.43 billion. The Trump administration has threatened India with sanctions under CAATSA, if the latter goes ahead with the acquisition.
CAATSA was enacted on August 2017 to punish Russia by sanctioning persons engaging in business transactions with the Russian defence sector. As CAATSA sanctions mandate, it is difficult for India to make payments in US Dollars to Rosoboronexport for the S-400 SAM systems.
The views and opinions expressed in this article are solely those of the speaker and do not necessarily reflect Sputnik's position.
The views and opinions expressed in the article do not necessarily reflect those of Sputnik.