By IDI

The much-celebrated $ 5.4 billion S-400 purchase deal could see setting up of production line of the missile system in India. The Russian media informed quoting Sergey Chemezov, CEO, Rostec, the Russian technology and defence conglomerate.

“Yes, we are discussing the localization [of S-400 production] with India as well,” he said to RBK broadcaster.

India and Russia signed the contract for five regiments of the S-400 system in 2018. During the recent Prime Minister Narendra Modi’s visit to Vladivostok, the two sides signed an agreement on military spare parts production in India.

"We have developed the BrahMos missiles together with them [India], on their territory, together with their scientists,” he added.

BrahMos is a joint development and production program between the two strategic partners. On a similar line, the two nations will co-produce Ka-226T helicopters and AK-203 assault rifles.

Currently, India is license producing T-90 tanks and Su-30 MKI fighter.

Speaking on the US sanction on defence business, Chemezov said, “We have already abandoned dollar payments two or three years ago. So, for the most part, we have different paying options. Either in the national currency, or we use the barter system.”

According to Sputnik, “Chemezov emphasized that Moscow has completely ditched the use of the US dollar with its partners in military contracts, adding that currently there are various options for contract payments, including Russian currency and barter.”

Last week, India signed a contract for upgrade of an air defence system for Delhi class destroyers. A part of the project will be executed with the support of Indian industries.

The first of the five systems is expected to arrive in 2023.

The mode of payment for S-400 is in Indian currency. Payments will be made through banks on both sides.

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.