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India paid advance for Russia’s S-400 missiles, delivery to be complete in full in 2025

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India paid advance for Russia’s S-400 missiles, delivery to be complete in full in 2025
18 Nov, 2019 08:15 / Updated 8 hours ago
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FILE PHOTO. Parts of a Russian S-400 defense system are unloaded from a Russian plane in Turkey. ©Turkish Defence Ministry via REUTERS

India’s purchase of Russia’s S-400 air defense system for over $5billion which US tried to derail is moving ahead, with the advance payment already made, head of a Russian defense conglomerate has confirmed.


“The advance payment has been made. I will not say the exact figure, but the payment is done,” Sergey Chemezov told journalists on the sidelines of Dubai Airshow on Monday. His company, Rostec, is deeply involved in Russian arms export, including sale of S-400 surface-to-air missiles.

His remark confirmed the report by the newspaper Hindustan Times, which said India had paid Russia some $850 million, or 15 percent of the total sum, in September. The report said the payment used a mechanism designed to circumvent US monitoring of international financial transactions. Washington has a law that says any buyer of advanced Russian weapon systems, including the S-400, may be subjected to financial sanctions and vocally opposed the Russian-Indian deal.


Chemezov assured the state-of-art military hardware that India ordered was already being produced and that the delivery will be fully complete in 2025, just as the contract says. He wouldn’t elaborate on the shipment schedule. The Hindustan Times said its sources expected the first batch to arrive “in 16 to 18 months”.

The S-400 is Russia’s most advanced long-range air defense system meant to intercept enemy aircraft and missiles. The contract signed in October last year is for five S-400 batteries and is estimated to be worth $5.4 billion.

A similar deal between Russia and Turkey resulted in a major rift between Washington and Ankara. The US pressured its NATO ally not to buy the Russian weapon system, but failed to stop the purchase. It retaliated by kicking Turkey out of the F-35 fighter jet program, claiming it was necessary to protect the aircraft’s secrets from Russia.

Chemezov remarked that part of the appeal that Russian weapons have in the international market is that “we never impose political conditions”. Rostec, the state-owned company that he heads, is, among other things, a top mediator between Russian defense manufacturers and foreign clients through its subsidiary, Rosoboronexport.

https://www.rt.com/news/473684-s-400-india-payment/
 
However, there are few of interesting points to be considered in view of this purchase as;
  • Turkey bought S-400 & US then denied F-35 even being NATO member so what kind of pressure stick US will use against India?
  • Is that the reason as why IAF Chief went ahead to say that India will be going ahead with indigenous AMCA/5th Gen planes in future?
  • Will US deny any fighter aircraft to India having security reservations against S-400 similar to Turkey?
  • Or US will now prefer Indian Market on the cost of US security breach (Air Crafts in IAF)?
  • Is it safe to assume that India is not going to buy US Fighter Jets?
 
However, there are few of interesting points to be considered in view of this purchase as;
  • Turkey bought S-400 & US then denied F-35 even being NATO member so what kind of pressure stick US will use against India?
  • Is that the reason as why IAF Chief went ahead to say that India will be going ahead with indigenous AMCA/5th Gen planes in future?
  • Will US deny any fighter aircraft to India having security reservations against S-400 similar to Turkey?
  • Or US will now prefer Indian Market on the cost of US security breach (Air Crafts in IAF)?
  • Is it safe to assume that India is not going to buy US Fighter Jets?
Some key points

Punishing India in the same way as China or Turkey could jeopardize the United States’ Indo-Pacific strategy, which is aimed at containing China. US policymakers see a strong India as a critical counterweight to China. It will, however, be difficult for the United States to make an exception for India but not impossible.

The United States will have to weigh the S-400’s potential utility against China. On the bright side Indian analysts argue that this system is essential for India to address asymmetry with China in terms of air power.

But China is already deploying the same system against Taiwan and would know how to take qualitative and quantitative countermeasures to circumvent the system deployed by India.

If India goes ahead with the S-400 deal US and European defense suppliers could use end user license agreements to restrict the deployment of their hardware in areas where the S-400 is operable. This concern has been a key factor in the US opposition to Turkey’s plans to purchase the S-400.

Sanctioning India under CAATSA, however, could damage the United States’ relationship with India and compromise its regional strategies where India plays a central role. But, letting India go ahead with this acquisition will raise questions over the interoperability and integration of US and European-supplied military hardware in the overall scheme of Indian defense arrangements, and the larger role that the United States expects India to play vis-à-vis China.
 
India is buying P-8I and drones for IN from US and the deal is likely to be signed in Feb-March next year. Total cost of this deal is similar to S-400 purchase from Russia. This is how India is balancing out US concerns.
 
Some key points

Punishing India in the same way as China or Turkey could jeopardize the United States’ Indo-Pacific strategy, which is aimed at containing China. US policymakers see a strong India as a critical counterweight to China. It will, however, be difficult for the United States to make an exception for India but not impossible.

The United States will have to weigh the S-400’s potential utility against China. On the bright side Indian analysts argue that this system is essential for India to address asymmetry with China in terms of air power.

But China is already deploying the same system against Taiwan and would know how to take qualitative and quantitative countermeasures to circumvent the system deployed by India.

If India goes ahead with the S-400 deal US and European defense suppliers could use end user license agreements to restrict the deployment of their hardware in areas where the S-400 is operable. This concern has been a key factor in the US opposition to Turkey’s plans to purchase the S-400.

Sanctioning India under CAATSA, however, could damage the United States’ relationship with India and compromise its regional strategies where India plays a central role. But, letting India go ahead with this acquisition will raise questions over the interoperability and integration of US and European-supplied military hardware in the overall scheme of Indian defense arrangements, and the larger role that the United States expects India to play vis-à-vis China.

Thank you for the interesting input. Allow me to share my side as well and the same is based upon hypothetical scenario as nothing is clear as of yet in this regard re India US relations post S-400.
  • Turkey being NATO ally and having the unpleasant past with Russia & China, could have been more of a possible counter weight in M.E but still, Turkey went ahead & US isn't much happy hence, CAATSA.
  • S-400 against China does not weight more than what US could have offered to India, if the case was only to deter Chinese Air Superiority.
  • S-400 deployment is targeted at for deployment against Pakistan & China and that is the fact then, such end user license by EU/US for not to use their Equipment in such area; becomes redundant because who else will India deter except for China & Pakistan?
  • Restricting EU/US equipment deployment then may suggest that S-400 wouldn't be covering all the border area but key important locations mostly while the border security (Air, Land & Sea) will still remain dependent upon IAF, IA & IN while S-400 will covering inland locations?
  • The targeted coverage area of S-400 will specifically deny any US/EU equipment deployment (one can assume of no IFF) & India will then rely upon Russian equipment to operate in close proximity of S-400. (Example could be quoted in regard to Mi-17V5 fratricide in Budgam on 27th Feb, 2019).
So, there are lot of questions yet un-answered or the time is needed to be clarified because till now, doesn't seem that US will ever compromise over equipment integration with S-400 system to operate. It has been reported that S-400 is feared to collect data of integrated/mated equipment and that can compromise US/EU equipment security, to US. The library of such system will definitely store data or will even pass onto OEM, as suspected by US in-case of Turkey.
 
Thank you for the interesting input. Allow me to share my side as well and the same is based upon hypothetical scenario as nothing is clear as of yet in this regard re India US relations post S-400.
  • Restricting EU/US equipment deployment then may suggest that S-400 wouldn't be covering all the border area but key important locations mostly while the border security (Air, Land & Sea) will still remain dependent upon IAF, IA & IN while S-400 will covering inland locations?
  • The targeted coverage area of S-400 will specifically deny any US/EU equipment deployment (one can assume of no IFF) & India will then rely upon Russian equipment to operate in close proximity of S-400. (Example could be quoted in regard to Mi-17V5 fratricide in Budgam on 27th Feb, 2019).
So, there are lot of questions yet un-answered or the time is needed to be clarified because till now, doesn't seem that US will ever compromise over equipment integration with S-400 system to operate. It has been reported that S-400 is feared to collect data of integrated/mated equipment and that can compromise US/EU equipment security, to US. The library of such system will definitely store data or will even pass onto OEM, as suspected by US in-case of Turkey.

Mi-17V5 issue is the panic mode combined with IFF turned off, it is blunder on our part and a wake up call, even thought S400 is not related to it as this was in the pipe line even before Feb 27 but the heat is up after that incident

On the issues of sanctions that India could face under the Countering America's Adversaries Through Sanctions Act (CAATSA) for going ahead with the S-400 deal and trade concerns over tariffs imposed on certain goods by both the countries. The two sides, however, agreed to work their way through the contentious pact among other issues, including trade. As far as my opinion goes, we are expected to deploy the S-400 system for air defence against both China and Pakistan.

I know some fanboys dont agree, but as of now There is no a blanket waiver or country waiver when it comes to an S-400. US Administration have serious concern about a possible S-400 purchase by India and Us is continuing their conversations on what the United States or other defense providers could assist India an alternative to S400, which I think india will not go for unless there some really juicy carrot from USA like jet engine tech transfer.

  • Turkey being NATO ally and having the unpleasant past with Russia & China, could have been more of a possible counter weight in M.E but still, Turkey went ahead & US isn't much happy hence, CAATSA.
  • S-400 against China does not weight more than what US could have offered to India, if the case was only to deter Chinese Air Superiority.
  • S-400 deployment is targeted at for deployment against Pakistan & China and that is the fact then, such end user license by EU/US for not to use their Equipment in such area; becomes redundant because who else will India deter except for China & Pakistan?
Below some point's from CAASTA Document
https://www.treasury.gov/resource-center/sanctions/Programs/Documents/hr3364_pl115-44.pdf


Although CAATSA contains different penalties for myriad infractions, Sections 231 and 235 of the law place India in an unavoidable crossfire. Section 231 requires that the president impose sanctions on any entity that “engages in a significant transaction with the defense or intelligence sectors of the Government of the Russian Federation,” and Section 235 describes the sanctions that may be imposed, which include, but are not limited to, prohibiting “any transactions in foreign exchange that are subject to the jurisdiction of the United States and in which the sanctioned person has any interest” and forbidding “any transfers of credit or payments between financial institutions or by, through, or to any financial institution, to the extent that such transfers or payments are subject to the jurisdiction of the United States and involve any interest of the sanctioned person.”

These two sections of the law now endanger India’s long-standing defense relationship with Russia for many defense goods, including its latest effort to procure the S-400 SAM. India has been negotiating its purchase for many years, going back to the Obama administration. At that time, however, these discussions received little attention in Washington, because India was well known to be an important customer of Russian military equipment. Moreover, the Indian acquisition of the S-400 did not threaten any particular U.S. equities then and, if anything, spared Washington the difficulty of having to offer New Delhi any alternative at a time when the United States was reluctant to introduce strategic defense systems into South Asia.

as for my take over All on the surface, there is no easy way out of this conundrum. India aims to negotiate the purchase of at least five complete Russian S-400 systems with a price tag of close to $6 billion—almost the textbook definition of a significant transaction envisaged in CAATSA. The Trump administration, consequently, could not pretend to ignore this deal, even if it wanted to. And Congress would never permit it to do so
 
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No problem!!! Pak has started the preps early enough!! Already tested against the Greek S-300, hopefully with the Turkish EW subsystems, to build up the confidence!!! Now, the “libraries” for KORAL EW systems will be updated!!! And, Pak can prepare a counter measure - even more devastating than 02-26 to 02-28 episode....
 

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