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Date: 4 weeks ago   Category: Politics

Why India has ceased to pay according to defense contracts with Russia?


Indian military personnel.
Under the majority of contracts payments don't arrive since April. Media have connected it with sanctions of the USA against Rosoboronexport. Whether transition to payments in national currencies can solve problems? Indian military personnel. Photo: Jayanta Dey/Reuters In Moscow was confirmed by problems with payments according to defense contracts with India. Earlier Vedomosti with reference to the sources has reported that under the majority of weapon contracts with Russia they don't arrive since April of this year. According to the edition, it is connected with sanctions of the USA against Rosoboronexport which threaten also partners of the Russian enterprise. As have told RIA Novosti in Federal Service for Military-Technical Cooperation, Russia and India will settle the arisen problems. "There are certain problems connected with payments under the current contracts which have arisen for the reasons which aren't depending on us and the Indian side. These problems are solved. We find ways of system settlement of the matter" — the agency cites. Scales of a problem are commented by the research associate of the Center of the analysis of strategy and technologies, the editor-in-chief of the Export Vooruzheny magazine Andrey Frolov: Andrey Frolov the research associate of the Center of the analysis of strategy and technologies, the editor-in-chief of the Export Vooruzheny magazine "If 10-15 years ago India unconditionally was on the first place, the volume of deliveries was very big there, now India is hardly included into the five, and on the fifth place following the results of last year. It is connected with the fact that we in the past and this year didn't deliver any large and expensive platforms to India, and now there is substantially a repair of earlier put equipment or at best modernization, perhaps research and development. Anyway all this very insignificant volume. Because Indians can't pay, that to whom they don't pay, hard, but actually if we carried out any large contracts with India, the volume of disaster would be much worse". Earlier the CEO of Rosoboronexport Alexander Mikheyev has said that because of sanctions of the USA the state intermediary has begun to use alternative currencies in settlings with the clients. "We consider the possibility of payments in national currencies - it is Indian rupees, the Chinese yuans, dirhams and also rubles" — Interfax quoted the official. However it is not a panacea from secondary sanctions, the chief economist of PF Capital Evgeny Nadorshin:evgeny Nadorshin the chief economist of PF "Capital" "Considers if U.S. authorities decide that sanctions are violated, and will be able to find justifications of this violation, then any payments in any national currencies, sufficient for themselves bypassing dollar or euros won't help to bypass these sanctions at all. What payments in national currencies can help to make, it to make calculations less noticeable for regulators and the authorities. It can be reached. In many cases payment in national currencies for two countries will be a little more expensive, than payment in some reserve currency, dollar or euro, but for political or other reasons of any big obstacles to pass

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