Bringing an end to the speculation on the S-400 payment issue, Russia has confirmed that the two sides have worked out the mechanism for payment and the first system is expected to arrive in 2023, according to Russian media reports.
The delivery will follow the delivery schedule of the contract signed between the two sides in 2018. India is purchasing five regiments of the long-range-surface-to-air-missile systems for over $5.4 billion.
“The delivery of S-400 will start in 2023 as per the contract which was inked in 2018. We need to find ways to eliminate dependency on the US dollar. The US dollar is distrusted worldwide,” said Roman Babushkin, Minister-Counsellor, Russian Embassy, in a press conference in New Delhi.
“The delivery of S-400 will start in 2023 as per the contract which was inked in 2018. The mode of payment will be in Indian currency. Payments will be made through banks on both sides," he added.
The rupee-ruble route is being used to avoid the sanction under the Countering America’s Adversaries Through Sanctions Act (CAATSA) law passed by the US government last year. This prime objective of this law is the sanction Russian weapon industry.
The deliveries are expected to be completed by 2025.