India-Russia deal under sanctions cloud

TEHRAN _ Although India has managed to get a waiver from U.S. sanctions for purchase of Iranian crude oil, there is still no word from the Trump administration on similar waiver for India’s ambitious deal with Moscow to purchase S-400 missile system worth $5.4 billion.
Both India and Russia signed the contract for supply of long- range surface to air missile system during Russian President Vladimir Putin’s visit to India last month. However, the ominous shadow of U.S. sanctions has been hanging over the deal ever since.
According to reports in Indian media, quoting senior government officials, while India has demanded waiver on grounds that the negotiations of the deal happened before the CAATSA, any exemption by U.S. will only be known when Indian government makes the initial payment for the missile system.
“With Russia already under US sanctions, it is for both Moscow and New Delhi to decided one mode of payment. Whether CAATSA has been waived or not will only be known once the Defense Ministry negotiates the mode of payment with its Russian counterpart,” a report quotes an official saying.
India kept the Trump administration in confidence while signing the contract for purchase of S-400 systems. India’s Defense minister Nirmala Sitharaman had pitched for a CAATSA waiver during her meeting with U.S. Defense Secretary James Mattis on October 19 on the sidelines of the ASEAN Defense Ministers’ Meeting plus in Singapore.
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