10:04 GMT +319 November 2018
Listen Live
    Asia & Pacific

    India Finalizes the Deal for Two Russian Frigates Off the Shelf for $950 Million

    Asia & Pacific
    Get short URL
    1171

    Sputnik had reported on 4 October that India's Cabinet Committee on Security (CCS) had approved the procurement of four frigates from Russia at a cost of around $2 billion. While two of them are being purchased directly from Russia for $950 million, the other two will be built in India under a separate deal, which is expected later this year.

    New Delhi (Sputnik): India has inked the final contract with Russia for the purchase of two frigates equipped with BrahMos supersonic cruise missiles for $950 million. According to the deal signed last week, the two Talwar-class/Project 11356 frigates will be shipped directly to India.

    READ MORE: India Opens Fast-Track Single Window Mechanism for Russian Firms

    The two frigates which are almost fully built at Russia's Yantar Shipyard at Kaliningrad, will be equipped with M7N.1E gas turbine engines from Ukraine, for which India has already inked a separate agreement.

    The two frigates were originally designed to be fitted with Ukraine-built gas turbine engines but after Crimea's reunification with Russia, Moscow stopped importing the engines from Ukraine, rendering the ships of little use to the Russian Navy.

    "Given that the US has implemented sanctions on weapons purchases from Moscow, India could make payments for the ships using the rupee-ruble route," the Economic Times reported.

    On October 25, Sputnik had reported that India was making a strong case before Russia to avoid payments in US dollars for the purchase of goods, including defense equipment. Sources told Sputnik that a senior government official at the country's Ministry of External Affairs met Russian officials last week, and discussions were held at length about payments for Russian imports.

    READ MORE: India Continues to Import Iranian Crude; Payments to be Made in Rupees

    "India wants to finalize arrangements with Russia for imports, including payment for the S-400 Triumf air defense system, very soon," a person familiar with the development told Sputnik.

     

     

    Related:

    As Russia, China, India Remapping Eurasia, US Mulls Over Military Plans - Author
    India-Russia Military Cooperation to Soar Higher With New Technical Wing
    Pakistan Voices Opposition to Russia's S-400 Sale to India
    US Sanctions Over S-400 Will 'Bring India Closer to Russia' - Defense Analyst
    Tags:
    frigates, national currencies, BrahMos, de-dollarization, Indian Ministry of External Affairs, India, Russia
    Community standardsDiscussion
    Comment via FacebookComment via Sputnik