Times of Islamabad

India may face US Military sanctions over 5.43 billion mega defence deal?

India may face US Military sanctions over 5.43 billion mega defence deal?

NEW DELHI – Indian External Affairs Minister Subrahmanyam Jaishankar saidthis week he was “reasonably convinced” that the United States wouldunderstand New Delhi’s decision to purchase advanced defence equipment,including the S-400 missile defence system, from Russia.

The US State Department has warned its “allies and partners” that they willface sanctions if they choose to go ahead with the acquisition of Russianmilitary equipment, the Indian English daily *The Hindulink* reported.

“We urge all of our allies and partners to forgo transactions with Russiathat risk triggering sanctions under the Countering America’s AdversariesThrough Sanctions Act (CAATSA),” a State Department spokesman told TheHindu.

The comment was made shortly after Indian External Affairs MinisterSubrahmanyamJaishankarlinksaidthat New Delhi has always maintained that sourcing of its militaryequipment was very much a “sovereign right”linkandexpressed hope that Washington would understand the country’s decision tobuy Russian S-400 missile defence systems, Sputnik has reported.

India and Russia signed a $5.43 billion contract for the purchase of fiveS-400 missile defence systemslink,despite US threats to slap sanctions on any country that buys from Russia’sdefence sector under CAATSA.

Unless US President Donald Trump grants a waiver, the Indian deal couldtrigger sanctions when the first payment for the equipment is made. TheState Department said that the government has not made any decision onpossible action under CAATSA; however, India and Russia are believed tohave found a permanent payment mechanism, which they believe wouldcircumvent possible US sanctions.

This summer, Russia completed its delivery of the first batch of the S-400systems to Turkey, pursuant to a deal concluded in 2017. After Ankara madeit clear earlier in the year that it would proceed with the deal,Washington suspended the deliveries of F-35 jets to Turkey, warning offurther sanctions to follow. Turkey plans to activate the S-400 systems inApril 2020.