Narendra Modi invites Russian Federation to set up defence industrial park in India

Putin: US Making 'Colossal' and 'Typical' Empire's Mistake

India agreed a deal with Russian Federation to buy S-400 surface to air missile systems on Friday as New Delhi disregarded U.S. warnings that such a purchase could trigger sanctions under USA law.

Kremlin Spokesman, Dmitry Peskov, says the deal was signed during Russian President Vladimir Putin's visit to New Delhi for an annual summit.

India has signed more than $15 billion in USA defence contracts since 2008, including for C-130J and C-17 transport aircraft, P-8I maritime patrol aircraft, Harpoon missiles and Apache and Chinook helicopters.

India's decision to purchase the S-400, which shoots down any incoming enemy aircraft and missiles, flies in the face of the United States imposing sanctions on countries buying Russian military hardware, as happened with China last month.

US officials have said there is no guarantee of a waiver from the Trump administration, which has imposed sanctions on China's military for the purchase of the same system. Rostec CEO Sergey Chemezov said that "The S-400 supply agreement with India is a new landmark in the history of military-technical cooperation between our countries".

The deal was wrapped amid the USA warning that punitive sanctions will be imposed against a country which executes significant business deals with the Russians.

Under a new U.S. law, purchase of Russian defence equipment invites sanctions, but New Delhi has pinned hopes on a USA waiver. "India gives priority to its relations with Russia", ANI quoted Modi as saying at a joint press conference.

The two countries have a little time to hash things out: the US sanctions kick in when India starts paying for the missile systems, not from the time a deal is reached, experts said.

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Melania Trump receives flowers during an arrival ceremony after landing at Kotoka International Airport in Accra October 2, 2018. SAUL LOEB/AFP/Getty Images Melania Trump holds a baby during a visit to the Greater Accra Regional Hospital in Accra.

India and Russian Federation are also considering Rupee-Ruble arrangement for bilateral payments and transactions.

Vladmir Putin is India on a two-day India visit.

Welcoming Indian firms to invest in Russia, Putin said the two nations share longstanding ties.

Russian Federation is a major energy partner of India, he said, adding there is a need to increase cooperation in new and renewable energy also. He also said that the two leaders discussed the resulting situation after United States withdrawal from Iran nuclear deal. "India has a very sophisticated policy of separating the relationship between India and the USA and India and the Russian Federation. When we send Harley Davidson motorcycles and other things to India, they charge very, very high tariffs", said Trump.

The bilateral talks between the two leaders are going on.

Eight agreements were also signed between the two sides at the end of the talks.

"Our two countries have common interests in cooperating on countering terrorism, on developments in Afghanistan and Indo Pacific, climate change, and in organisations such as the SCO, BRICS, the G20 and ASEAN", Modi said.

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