Media says India & Russia have signed the deal. However look at Option 2. It says defer payment. Are we deferring payment ?
India inks S-400 missile deal, but payment hiccups loom | ET | Oct 06 2018
So if we cannot pay the Russians then the matter ends there
Mixed message
When does India get the missiles assuming things go forward
First missiles arrive in India : T +2 years
By the time the full shipment arrives : T + 5
Tying up loose ends : Add another two more
S400 operational in India means not before 2025 (!)
India inks S-400 missile deal, but payment hiccups loom | ET | Oct 06 2018
Typically, within days of signing a contract, a 15% advance is given to the foreign supplier to initiate production. In the case of the S-400, its manufacturer Almaz-Antey is on a US financial sanctions list that prohibits banking institutions from dealing with it, at the penalty of exclusion from the dollar trade controlled by Washington. While India has got exemptions from the US Countering America’s Adversaries through Sanctions Act (CAATSA), financial sanctions that prevent money to be transferred for weapons purchases from Russia are still in effect.
This will make it difficult to find banking entities in both nations willing to risk processing the payments.
In fact, even payments for ongoing projects with Russia have been stalled this year. Talks on the S-400 deal had started before CAATSA, said people with knowledge of the matter. “We have done what we had to do in national interests,” said one of them. The US Embassy in New Delhi was noncommittal on India getting a waiver for the S-400 deal.
This will make it difficult to find banking entities in both nations willing to risk processing the payments.
In fact, even payments for ongoing projects with Russia have been stalled this year. Talks on the S-400 deal had started before CAATSA, said people with knowledge of the matter. “We have done what we had to do in national interests,” said one of them. The US Embassy in New Delhi was noncommittal on India getting a waiver for the S-400 deal.
CAATSA was aimed at imposing costs on Russia for its “malign behaviour” and it was “not intended to impose damage to the military capabilities of our allies or partners,” a US Embassy spokesperson said.
“The waiver authority is not for a blanket waiver. It is transaction-specific. There are strict criteria for considering a waiver. Waivers of CAATSA section 231will be considered on a transaction-by-transaction basis.
We cannot prejudge any sanctions decisions,” the spokesperson said
“The waiver authority is not for a blanket waiver. It is transaction-specific. There are strict criteria for considering a waiver. Waivers of CAATSA section 231will be considered on a transaction-by-transaction basis.
We cannot prejudge any sanctions decisions,” the spokesperson said
When does India get the missiles assuming things go forward
First missiles arrive in India : T +2 years
By the time the full shipment arrives : T + 5
Tying up loose ends : Add another two more
S400 operational in India means not before 2025 (!)
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