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Bloomberg: Russian arms shipments to India fall through due to financial sanctions

by The Kyiv Independent news desk April 21, 2023 5:06 PM 1 min read
This audio is created with AI assistance

Russian arms shipments to India have been hindered by the increasing difficulty of finding a payment system that doesn't violate U.S. sanctions, Bloomberg reported on April 21.

Due to U.S. sanctions against Russia, India cannot pay Moscow in dollars. Moreover, Russia will not accept rupees because of the currency's alleged exchange volatility, according to Bloomberg.  Russian rubles likely cannot be purchased at a "fair rate" by New Delhi either.

Consequently, India has failed to make payments exceeding $2 billion to Russia in the past year, leading Russia to pause the delivery of two batteries of the S-400 air defense system and credit for about $10 billion worth of spare parts.

New Delhi has suggested that the purchases be transacted in rupees, with Russia utilizing the currency to invest in Indian debt and capital markets. However, Moscow purportedly turned down the proposal, according to Bloomberg.

India depends on Russia as one of its major arms suppliers, and the inability to perform regular maintenance on its fleet of Russian helicopters and fighter jets could potentially expose vulnerabilities in India's borders with China and Pakistan.

Russian arms sales abroad are also expected to continue to dwindle as a result of Russia's ongoing war against Ukraine, which has caused the Russian military to use up significant amounts of the country's weapons stockpiles, Bloomberg wrote.

Timothy Ash: Is China serious about peace?
Editor’s Note: The opinions expressed in the op-ed section are those of the authors and do not purport to reflect the views of the Kyiv Independent. Over the past month, we have seen a sudden, and somewhat surprising, volte-face by China in terms of its approach to Russia’s
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