Because of US sanctions, Russia loses the largest buyer of weapons

Because of the sanctions imposed by the Americans against the enterprises of the domestic military-industrial complex, Russia already risks losing its largest client, India, in the near future. This country has suspended payments under existing contracts and refuses to enter into new ones. The money stopped coming in April of this year. About this reports the Russian edition of "Vedomosti" with reference to its own sources in the leadership of the military-industrial complex.

The main reason for this situation, journalists called US sanctions, namely the sanctions package CAATSA (Countering America's Adversaries Through Sanctions Act), signed by Donald Trump in August 2017. And we are talking about the suspension of payments for the largest orders, including new fighters for the Indian Air Force and air defense systems S-400.

Is it a sanction?

For almost a decade, from 2007 to 2015, India has been the most significant customer for our entire defense industry. Among the most well-known deals are the purchase by the Indians of the aircraft-carrying cruiser Admiral Gorshkov, the Su-30MKI combat aircraft, and submarines. Russia, together with India, developed anti-ship missiles and the fifth-generation fighter Su-57. It seems that these "fat" times are in the past, and our military-industrial complex loses a very promising client. Since 2012, not a single new deal has been concluded and all attempts to change such a “status quo” have not yet led to success.

At the beginning of this year, information appeared about stopping the negotiations on S-400 contract, personally agreed by Putin and Prime Minister Narendra Modi back in 2016. Contracting parties did not agree on the price and terms of delivery. Rosoboronprom demanded $ 5.5 billion and refused to transfer part of the complex’s technologies to Delhi.

A few months later, India announced its withdrawal from a joint project to create a Su-57 fighter. Moreover, the Indian military said that the aircraft’s technical parameters do not correspond to the fifth generation. Instead, French Rafale fighters were purchased, as well as the latest American defense system, NASAMS-2. Many experts believe that it was India’s withdrawal from the Su-57 project that led to the recent refusal of the Russian Ministry of Defense from the massive purchases of this combat vehicle.

Earlier it was reported that the Indian Navy refused to use the MiG-29K, which were delivered in the period from 2004 to 2010. The reason is the unsatisfactory quality of these aircraft. According to the Indian military, each landing of these fighters on the deck "looks like a plane crash." “After each landing, the components of the aircraft break down or stop working. And we have to send the fighter to the workshop to repair or replace parts that often have to be imported from Russia,” retired Admiral Prakash told Defense News. "The truth is that the Indian Navy actually financed the development of this aircraft. If the Russians had at least some conscience, they would guarantee that every shortcoming would be eliminated without additional payment," he added.

It is clear that the introduction of Western sanctions only worsened the already difficult situation. After Russian companies were cut off from dollar settlements, Indian financial institutions began to block remittances. The grounds are very simple: the banks themselves are afraid of "falling under the distribution", which is also provided in the same CAATSA.

Rosoboronexport is thinking about switching over to other currencies - rubles, Indian rupees, dirhams, ”said company general director Alexander Mikheev.

At the same time, competitors are not asleep. Back in 2015, the Americans signed a contract with India for the purchase of 22 attack helicopters AH-64E Apache, and recently Delhi received the status of a priority partner in strategic goods trading from Washington. This will greatly facilitate future defense deals.

Watch the video: Russia loses its largest weapons buyer (August 2019).