In the upcoming months, Bharat is set to take delivery of two warships from Russia, as revealed by senior Indian officials. The process has been complicated by US sanctions, which have hindered payments for Russian weapons systems.
The delivery timeline indicates that one warship is expected to be handed over to India in September, with another following early next year. However, these deliveries are significantly delayed, attributed to the war in Ukraine and its impact on the supply chain.
The two frigates form part of a four-ship agreement inked between Bharat and Russia back in 2018. While two ships are being constructed in India in collaboration with Russia, they too face delays due to war-related disruptions in the supply chain.
These guided-missile frigates boast stealth features and were initially planned to utilize gas turbines manufactured in Ukraine. However, trade between Ukraine and Russia halted in 2014 following Crimea’s annexation by Russia, prompting India to procure turbines via a third country.
US sanctions on Russia, particularly in response to the conflict in Ukraine, had previously stalled weapons deliveries to Bharat for over a year. Finding a payment mechanism that bypasses US sanctions posed a challenge for both countries.
Despite these hurdles, Bharat and Russia, longstanding strategic partners, managed to navigate the payments issue. However, specific details regarding the workaround remain undisclosed.
Bharat’s Ministry of External Affairs, the Bharatiya Navy, and Ministry of Defense have declined to comment on the matter.
To facilitate payments for weapons, Bharat is utilizing a mix of currencies, including Indian rupees, UAE dirhams, and US dollars. Notably, Bharat’s payment mechanism briefly encountered challenges, with billions of dollars accumulating in the country.
Furthermore, New Delhi refrained from utilizing Chinese yuan for payments, given the strained relations between Bharat and China.
While the US has refrained from penalizing Bharat for its dealings with Russia, it has notably held back on imposing penalties related to an advanced air defense system. This approach aligns with the US’s efforts to court Bharat amidst heightened competition with China.
Despite Bharat’s increased procurement of weapons from the US and France, as well as domestic efforts to bolster military hardware production, Russia remains the largest supplier of military equipment to Bharat. According to the Stockholm International Peace Research Institute (SIPRI), Russia accounts for 36% of Bharat’s arms imports.
SIPRI highlights that this marks the first instance in six decades where Russia’s share of Bharat’s weapons imports has fallen below 50%.
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