Why India & Russia failed to conclude negotiations for S400 Missile System?
In this video, we will discuss the deadlock in negotiations about S400 system.
Reference -
http://www.xinhuanet.com/english/2017-12/28/c_136855842.htm
http://www.timesnownews.com/india/article/india-russia-s400-triumf-air-defence-missile-systems-rs-39000-crore-deal-pakistan-nuclear-missile-indian-army/191076
https://www.defensenews.com/global/asia-pacific/2018/01/23/india-russia-fail-to-finalize-s-400-air-defense-deal/
https://economictimes.indiatimes.com/news/defence/s-400-missile-deal-being-negotiated-dont-rush-it-russian-official-sergey-chemezov/articleshow/62647237.cms
Transcript -
Hello Friends, welcome to Real Quick Info channel. Lets discuss about today's topic.
For last 2 years India and Russia have been engaged in discussion on Indian purchase of S 400, which is right now one of the best air defense systems in operation.
Early this week, there were reports doing rounds about India and Russia negotiations entering into final round. There was even possibility of finalizing the deal in this financial year.
But in last two days, there were reports of India and Russia again entering into a state of deadlock in the negotiations, with no possibility of final contract being signed anytime soon.
Russia is asking 5.5 Billion Dollars for the five S 400 units, with very high training fee and without any technology transfer for guided missiles.
More importantly, This price doesn't include maintenance services and Spare support.
In order to speed up the negotiation, While India was ready to relax the offset clause, which requires the reinvestment of 30 percent of the contract value in India.
Still Deal must be signed considering the life cycle of S400 missile system.
Considering the problems faced with Russia, India will not be in a position to finalize the deal without life time service support package.
As it appears now, Russia might be asking for more price and India is quite unwilling to pay anything more.
In this background, Russian officials are seeking more time to complete the negotiations with India.
As there is significant difference in between what Russia is offering and what India is expecting, there will be more delay in the acquisition of such a strategically important equipment.
Since China has already started getting deliveries of S400 systems, There is some sort of urgency to conclude the deal as soon as possible.
But in defense acquisition, we need to be very careful and focus on packaged deal.
There is no point in purchasing the missile system in hurry and separately negotiate for the Services, spares and maintenance package later on.
Meanwhile, if the system unfortunately breaks down, we will end up having dysfunctional air defense system with us.
Rather surprising fact is, Russia has recently finalized contract to sell four S 400 systems to Turkey at the cost of 2.5 Billion dollars.
Even if we consider current Russian offer without any life time support package, its very difficult to buy 5 S400 systems at the cost of 5.5 Billion dollars.
While we agree, there will be differences in between these two deals, but the price difference is too much to accept.
The point is, India has a need to buy proven S 400 system, but we can not allow ourselves be charged higher price because of our critical necessity.
The intergovernmental agreement for the sale of S 400 systems was signed in the presence of Putin and Modi, hence the top leadership is supportive of the deal.
We might have hit the dead lock right now, but desire to continue the negotiations on both sides is definitely good sign.
Indian tax payers would expect our government to fight for each dollar and get the packaged deals in one shot. Its fine to wait for few more months.
We know, there is huge demand of S 400 systems in the world, Still Russia must come forward with reasonable packaged offer. American president John F Kennedy once said, "Let us never negotiate out of fear, but let us never fear to negotiate".
Indian hard negotiations for French Rafale fighter jet confirmed, we will get only, what we negotiate for.
As per your views, do you think, India should not waste time in negotiations and accept current Russian offer??
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below. Thank you friends
Tags
India,
Russia,
India Russia defense relationship,
S400,
S400 Missile System,
S400 air defense system,
S400 Missile air defense system,
India buying S400 Missile system,
China buying S400 system,
S400 Triumph missile system,
Putin,
Modi,
India purchasing S400 missile system,
India Russia negotiations on S400,
Indian deal to buy S400 system,
China getting S400 delivery,
When India will get S400,
Indian defense news,
Indian Army,
Indian Pakistan,
S400 Air defense system,
For last 2 years India and Russia have been engaged in discussion on Indian purchase of S 400, which is right now one of the best air defense systems in operation.
Early this week, there were reports doing rounds about India and Russia negotiations entering into final round. There was even possibility of finalizing the deal in this financial year.
But in last two days, there were reports of India and Russia again entering into a state of deadlock in the negotiations, with no possibility of final contract being signed anytime soon.
Russia is asking 5.5 Billion Dollars for the five S 400 units, with very high training fee and without any technology transfer for guided missiles.
More importantly, This price doesn't include maintenance services and Spare support.
In order to speed up the negotiation, While India was ready to relax the offset clause, which requires the reinvestment of 30 percent of the contract value in India.
Still Deal must be signed considering the life cycle of S400 missile system.
Considering the problems faced with Russia, India will not be in a position to finalize the deal without life time service support package.
As it appears now, Russia might be asking for more price and India is quite unwilling to pay anything more.
In this background, Russian officials are seeking more time to complete the negotiations with India.
As there is significant difference in between what Russia is offering and what India is expecting, there will be more delay in the acquisition of such a strategically important equipment.
Since China has already started getting deliveries of S400 systems, There is some sort of urgency to conclude the deal as soon as possible.
But in defense acquisition, we need to be very careful and focus on packaged deal.
There is no point in purchasing the missile system in hurry and separately negotiate for the Services, spares and maintenance package later on.
Meanwhile, if the system unfortunately breaks down, we will end up having dysfunctional air defense system with us.
Rather surprising fact is, Russia has recently finalized contract to sell four S 400 systems to Turkey at the cost of 2.5 Billion dollars.
Even if we consider current Russian offer without any life time support package, its very difficult to buy 5 S400 systems at the cost of 5.5 Billion dollars.
While we agree, there will be differences in between these two deals, but the price difference is too much to accept.
The point is, India has a need to buy proven S 400 system, but we can not allow ourselves be charged higher price because of our critical necessity.
The intergovernmental agreement for the sale of S 400 systems was signed in the presence of Putin and Modi, hence the top leadership is supportive of the deal.
We might have hit the dead lock right now, but desire to continue the negotiations on both sides is definitely good sign.
Indian tax payers would expect our government to fight for each dollar and get the packaged deals in one shot. Its fine to wait for few more months.
We know, there is huge demand of S 400 systems in the world, Still Russia must come forward with reasonable packaged offer. American president John F Kennedy once said, "Let us never negotiate out of fear, but let us never fear to negotiate".
Indian hard negotiations for French Rafale fighter jet confirmed, we will get only, what we negotiate for.
As per your views, do you think, India should not waste time in negotiations and accept current Russian offer??
Please let us know your views in comment section below.
Please find the reference links of this video in the description box below. Thank you friends
Tags
India,
Russia,
India Russia defense relationship,
S400,
S400 Missile System,
S400 air defense system,
S400 Missile air defense system,
India buying S400 Missile system,
China buying S400 system,
S400 Triumph missile system,
Putin,
Modi,
India purchasing S400 missile system,
India Russia negotiations on S400,
Indian deal to buy S400 system,
China getting S400 delivery,
When India will get S400,
Indian defense news,
Indian Army,
Indian Pakistan,
S400 Air defense system,
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