Putin did not like the proposal
India has so far been unable to pay bills in US dollars. He is worried about sanctions while Russia says it cannot accept rupee payments. According to Russia, due to the unstable exchange rate of rupee, it is difficult to accept it. On the other hand, India does not want to pay in ruble. It is being told that India is worried that it will not be able to make purchases in the open market after ruble. A proposal has been made by the Government of India to Russia that it can use the money received from the sale of arms to invest in Indian debt and capital markets so that money deposits can be avoided. But Russian President Vladimir Putin did not like this proposal.
Russia and India silent
If sources are to be believed, a possible solution is being sought in the form of Euro and Dirham. It is said that at present these currencies are being used to pay for the import of crude oil from Russia. At the same time, there is also a possibility that some kind of step can be taken from the US side on the use of these currencies for the payment of weapons. At the same time, due to unfavorable exchange rates for India due to these currencies, the cost may increase.
If the officials are to be believed, the discussion which is still going on, it is being considered that a system should be made to offset the purchase of Indian imports against the cost of weapons. But it is not easy as according to the data Russia has a trade surplus of $37 billion with India last year which is the third highest after China and Turkey. Nothing has been said on this whole issue from the side of Russia and India.
Will have to find a solution soon
Resolving the issue of payment for arms has become imperative. National Security Advisor (NSA) Ajit Doval visited Moscow in January. The issue also figured in talks between Russian Deputy Prime Minister Denis Manturov and India’s External Affairs Minister S Jaishankar in Delhi this week. The Indian forces currently have over 250 Sukhoi-30 MKIs, which are Russian-made fighter jets. In addition, it operates seven Kilo-class submarines and more than 1,200 Russian-made T-90 tanks.
Maximum impact on IAF
These weapons and equipment are being used since last one decade. All these need spare parts as soon as possible. India has already received three out of five S-400 missile defense systems. In addition to the impact of sanctions on potential buyers, Russian arms sales are likely to continue to decline, the Stockholm International Peace Research Institute (SIPRI) said in a report in March. The biggest impact has been on the Indian Air Force (IAF). IAF is dependent on Russia for fighter jets and helicopters.