The supply of Russian weapons to India has been suspended, countries are trying to find a payment mechanism that does not violate US sanctions, Bloomberg writes, citing Indian officials.
According to one of the interlocutors of the agency, India’s payment for weapons in the amount of more than $ 2 billion has been delayed for about a year. In turn, Russia stopped providing a loan for the supply of spare parts in the amount of about $ 10 billion, as well as for the future supply of two batteries of the S-400 missile defense system.
The agency notes that Russia is the largest supplier of weapons to India. However, New Delhi cannot pay the bill in US dollars for fear of secondary sanctions, and Moscow does not want to accept rupees due to exchange rate volatility, agency sources say. The Indian authorities are no longer willing to make a deal in rubles, as they are not sure that they will be able to purchase a sufficient amount of currency on the open market at a fair price.
According to a senior Indian government official, one possible solution would be to use the euro and dirhams, as is already the case with paying for Russian oil imports. However, the use of these currencies could draw more scrutiny from the United States, as well as increase India’s spending due to unfavorable exchange rates.
Source: Rosbalt
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