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Policy dive: Sanctions force India to do US-Russia balancing act

The American sanctions against Russia to punish Moscow for its interference in the 2016 US presidential elections have remained a subject of intense debate in India over the past several months.

With the Indian armed forces being heavily dependent on Russian military equipment, spares and after-sales support, discussions in New Delhi have revolved around how the tough legislation passed by the US could hit India’s defence preparedness and what can be done to evade it. The US passed the Countering America’s Adversaries through Sanctions Act (CAATSA) earlier this year, imposing new penalties on Russia, Iran and North Korea.

Issues related to CAATSA are likely to be on the agenda of the upcoming 2+2 dialogue between the defence and foreign ministers of India and the US in early September.

Issue

The sanctions have come at a time when India is inching closer towards hammering out a ?39,000-crore deal with Russia for S-400 Triumf air defence missile systems. The S-400 is capable of destroying jets, missiles and unmanned aerial vehicles at a range of 400 km, and is a key requirement of the Indian Air Force.

On July 13, defence minister Nirmala Sitharaman announced that the S-400 purchase was at a conclusive stage and the US sanctions legislation won’t affect it, brushing aside Washington’s concerns about the deal.

Russian-origin equipment forms the backbone of the Indian military. Russia accounted for 62% of India’s arms imports during 2013–17, according to a report released by Stockholm International Peace Research Institute (SIPRI) in March.

The spectre of the sanctions hangs not only on the S-400 deal and other future projects with Russia but also on contracts that are being executed and spares and after-sales support for equipment already in service. India is in talks with Russia to figure out an alternative payment route to sustain bilateral defence trade as the sanctions have created banking hurdles. New Delhi is encountering problems in making payments to Russia for spares and maintenance support.

Debate

The US has conveyed to India in no uncertain terms that it has to cut its dependence on Russian weapons and systems, and take steps to diversify its arms imports.

During a visit to New Delhi in May, chairman of the US House Armed Services Committee William Thornberry flagged concerns about the S-400 deal, saying it would complicate interoperability between Indian and American forces. He said the US would encourage India’s efforts to diversify its suppliers of military equipment and it would be the topic of ongoing conversations with the government. India is clear that CAATSA cannot be allowed to derail the Indo-Russian military relationship as it’s an American legislation and not a UN one.

Army chief General Bipin Rawat said that it is critical for India to find ways to bypass US sanctions against Russia and pursue its own national interests, HT reported on July 6.

Significance

India is finding itself doing a balancing act between the US and Russia as it has a strategic partnership with both countries. If Russia is India’s top arms supplier, the US has consolidated its position in the Indian defence market over the past decade.

The SIPRI report revealed that arms exports from the US jumped 557% in 2013-17 as compared to 2008-12, making the US India’s second largest arms supplier. Since 2008, India has bought or ordered military equipment worth $15 billion from the US, including C-130J special operations planes, C-17 transport aircraft, P-8I submarine hunter planes, Harpoon missiles, Apache and Chinook helicopters and M777 lightweight howitzers.

Military purchases from the US have consumed more than a fourth of India’s total military capital expenditure in the last decade. India is not in a position to choose between Russia and the US, and will have to try and find a middle way.

Source: HindustanTimes