India-Russia Annual Summit

Why in news?

India-Russia annual summit was recently held in India between Indian Prime Minister and Russian President.

What are the key outcomes?

• Defence - The contract for five S-400 ‘Triumf’ Long Range Surface to Air Missile System was concluded.
• This agreement for the estimated $5.43 billion is one of the biggest defence deals in the recent times.
• Deliveries of S-400 will begin in 24 months, at the end of 2020.
• As per procedure, India would pay about 15% in advance, likely through the rupee-rouble exchange.
• India resisted concluding other major defence deals with Russia on helicopters, stealth frigates and assault rifles.
• These were reportedly ready but needed further negotiations.

• Trade - The two leaders addressed a business summit as an attempt to diversify ties and increase bilateral trade.

• Currently at below $10 billion, the two countries have set a target of $30 billion bilateral trade by 2025.
• Much of the fresh momentum in bilateral engagement will come from the energy sector.
• Others - Apart from S-400, the two sides concluded eight other agreements as part of the summit.
• A space cooperation arrangement to put an Indian in space, and an action plan for a new nuclear plant were signed.
• Other agreements on railways and agriculture were also finalised.

What is the significance of the summit?

• India gives top priority to relations with Russia, and it has become more relevant in the rapidly changing world.
• The visit of Russian President to India reaffirmed Russia's place as India’s biggest and most important defence partner.
• The S-400 is not merely military equipment for Russia but a tool for geopolitical strategy.
• The deal comes as India's assertion of “strategic autonomy” in its foreign policy and desire for multipolarity.

What is the challenge ahead?

• The announcement of the S-400 ‘Triumf’ deal could attract sanctions from the United States.
• The US's Countering America’s Adversaries Through Sanctions Act penalises defence purchases from Russia, Iran and North Korea.
• The U.S. Congress has passed the conference report on National Defense Authorization Act-2019 (NDAA-19), providing a modified waiver to CAATSA.
• However, President Trump will need to grant his approval for helping India evade American sanctions.
• The U.S. said that any waiver would be considered only on a “transaction-by-transaction basis” and not on a “country” basis.
• It also clarified that under CAATSA, it is payments and not signing of deals that triggers the sanctions.
• Given this, it can have serious implications on India’s relationship with the US.

What lies before India?

• India needs to stand firm on its deep engagement with Russia in the coming future.
• Accepting a waiver will implicitly commit India to reducing its intake of Russian military hardware.
• India will need to make some tough decisions on both CAATSA and on the U.S.’s proposed sanctions on Iran.

Source: The Hindu