Sources within the Indian government have revealed that they are looking for a solution to acquire arms from Russia, as per a prior agreement, without violating US sanctions, Bloomberg reports.
The sanctions prevent any monetary transfers to Russia. Reports state that Russia has stopped supplying arms to India due to the country not being able to pay nearly $2 billion owed for arms imports. This has led to Russia holding a line of credit worth approximately $10 billion for spare parts for weapons it has already supplied to India, as well as withholding two batteries of the S-400 anti-missile defense system. India requires these weapons for its border disputes with China and Pakistan.
The country does not want to pay Russia for arms using dollars or rubles to evade US sanctions, and the rupee option offered by India is unsuitable due to its volatility. The agency suggests that payments could be made in Euros and UAE currencies, similar to India's oil trade with Russia. However, India is worried about US sanctions affecting such trade. India is one of the largest markets for the Russian military-industrial complex, which is also its largest arms supplier.
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