India and Russia finally signed a contract for the S-400 air defence system worth $5.5 billion. Delivery of this state of the art military equipment would begin in two years from now.

“The sides welcomed the conclusion of the contract for the supply of the S-400 long range surface to air missile system to India. The sides reaffirmed their commitment to enhance military technical cooperation between India and Russia, which has a long history of mutual trust and mutual benefit,” said the joint statement.

Interestingly, the S-400 deal was not mentioned by the two leaders in their press remarks, but was stated clearly in the 45th paragraph of the joint statement.

CNBC-TV18 sought a response from the US government on whether India's move to sign the S-400 deal would attract sanctions as President Donald Trump is yet to agree on an India specific waiver.

The US embassy spokesperson said, "The intent of our implementation of CAATSA is to impose costs on Russia for its malign behavior, including by stopping the flow of money to Russia’s defense sector. CAATSA is not intended to impose damage to the military capabilities of our allies or partners."

"The waiver authority is not for a blanket waiver. It’s transaction-specific. There are strict criteria for considering a waiver. Waivers of CAATSA section 231 will be considered on a transaction-by-transaction basis. We cannot prejudge any sanctions decisions," embassy added.

US sanctions on Russia via CAATSA (Countering America's Adversaries Through Sanctions Act) were discussed by the two leaders.

Without referring to US, the joint statement noted, “Unilateral coercive actions of nations to impose their will on other nations does not conform to international law.”

There were discussions on Iran as well, and both sides agreed that all issues regarding the Iran nuclear program be negotiated through dialogue. Both leaders agreed on full implementation of the joint comprehensive plan of action, which US recently withdrew from.

Eight other agreements were signed between the two leaders. Prime Minister Narendra Modi and President Vladimir Putin also jointly addressed an India-Russia Business Summit, where 200 CEOs from both countries were present.

There were extensive discussions on increasing bilateral trade. President Putin noted that the two countries could reach their target of $30 billion in trade earlier than expected.

Significantly, India and Russia expressed support towards promoting bilateral trade in national currencies.

India and Russia would soon start an economic dialogue for which a memorandum of understanding (MoU) was signed between the Niti Ayog and the ministry of economic development, Russia. Both sides agreed to expedite negotiations on the free trade agreement and Eurasian Economic corridor.

India also conveyed its intention to increase import of fertilizers from Russia.

New Delhi also invited Russian companies to participate in the development of industrial corridors in India and welcomed the proposed trilateral meeting between Russia, India and Iran in Moscow to discuss transportation of goods from Iran to Russia.

There were extensive discussions on the peace process in Afghanistan and Syria as well.

First Published:Oct 5, 2018 8:22 PM IST