Geopolitics Over Guns: No mention of S-400, S-500, Su-57, Why India and Russia put defence deals on hold?

The political pundits, geostrategic experts, and people with an eye on the details of the defence deals taking place in the world were shocked by the joint statement issued after the 23rd India-Russia Summit on December 4-5 in New Delhi. There was no mention of the advanced air defence system S-500, the technology transfer of the S-400, or the fifth-generation stealth fighter Su-57. In fact, there was no mention of defence cooperation at all. It was the most unexpected development taking place during the state visit of Russian President Vladimir Putin. 

India-Russia defence cooperation

Earlier, the officials of the two sides talked much about the technology transfer of the air defence system S-400, and it was decided that the government-controlled Bharat Dynamics Limited (BDL) would be pitched for this purpose. Similarly, the purchase of the Su-57 and the advanced system of S-500 were discussed. None found any mention in the joint statement. The S-400 system was highly praised for its performance in Operation Sindoor and was termed the “game-changer” in the four-day military clash with Pakistan in May. Similarly, the Su-57 was considered better and cheaper compared to the US-made F-35. Donald Trump offered the Lockheed Martin-manufactured single-seat, single-engine, supersonic stealth strike fighters when PM Modi visited the US in February this year. The Indian government has been tight-lipped on this offer. 

(Air defence system S-400)

S-500 air defence system India

Analysts believe these deals were not signed because of the US sanctions imposed on Russia due to the Ukraine War. No payment is possible in the US dollar; it cannot be processed through the Society for Worldwide Interbank Financial Telecommunication (SWIFT) network. SWIFT is the global system for banks to send international payment instructions, using standardized messages. Russia has been banned from using the system that works like a secure messenger, relaying details like account numbers and amounts between different banks and on correspondent banking relationships for fund movement.  

Russia must be paid in its currency, the ruble, which is almost at par with the Indian currency. The ruble was trading at Rs 1.18 at the time of writing this news. With the trade deficit of $64 billion, India does not have enough rubles to pay the massive amount that may be accrued after the purchase of any of this military hardware. Under this pressure, the two sides put the defence deals on the back burner for now. 

(Russian-made fifth-generation stealth fighter jet Su-57)

Vladimir Putin’s India Visit

This is one of the reasons Moscow has shown its interest in buying more and more goods from India. Moscow has shown interest in buying seafood, aquaculture products, and meat from India. Talking to Indian media, Vladimir Putin said he had ordered his officials to see what it could buy from New Delhi. However, it will take time, and even after that, it will be difficult for the two countries to fill the trade gap completely. 

However, the two countries inked a Shipbuilding Cooperation Framework covering joint ship design, technology transfer, local manufacturing, and maritime infrastructure. With this, India can build ice-class ships with the