India hints at ditching US dollar in $5 billion mega defence deal

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India hints at ditching US dollar in $5 billion mega defence deal

NEW DELHI - New Delhi will likely pay for Russian arms in euros so as to avoid the threat of Washington sanctions, the Indian newspaper Economic Times 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 deal which stipulated that Russia’s VTB Bank will receive the money in euros.

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

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

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