NEW DELHI – New Delhi will likely pay for Russian arms in euros so as toavoid the threat of Washington sanctions, the Indian newspaper EconomicTimes cited unnamed sources as saying.

The sources claimed that although some payments have already been made“through the rupee-rouble route”, Moscow and New Delhi clinched a dealwhich stipulated that Russia’s VTB Bank will receive the money in euros.

Several contracts for the supply of Russian military hardware to Indiaworth a total of $4 billion have already been signed, including those forthe purchase of the S-400 missile systems and four frigates, as well as theChakra III submarine lease.

In addition, the sides are due to ink two more agreements related to thedelivery of AK-203 assault rifles and Ka-226 helicopters to the Indian army.

The developments come after the US Department of State warned India againstbuying the Russian S-400 systems, proposing that New Delhi to consideranother armament of that type.