Major defence deals with Russia, especially the S-400 deal, which have already seen delays due to the war in Ukraine continue to face uncertainty with no clarity on the revised schedule as efforts to resolve the payment crisis haven’t fructified so far. Currently payments of around $3 billion are held up and the central banks are working to resolve this, two official sources independently said.
Three of the five S-400 regiments contracted under a $5.43 billion deal in 2018 have been delivered but the other two are delayed and there is no clarity on the revised schedule, multiple sources confirmed. While the two sides have been trying to settle payments through a Rupee-Rouble arrangement, it has failed to solve the crisis due to the huge trade imbalance and Rupees accumulating on the Russian side. The revised delivery schedule can be worked out once there is clarity on the payment schedule, one of them said.
