American sanctions have STOPPED India Russia Defense deals!!

In this video, we will discuss about American sanctions stopping India Russia defense deals.



References - 
https://economictimes.indiatimes.com/news/defence/us-sanctions-rain-on-india-russia-defence-parade/articleshow/64036673.cms
https://sputniknews.com/us/201801301061177875-usa-russia-sanctions-congress-impact/
https://en.wikipedia.org/wiki/Countering_America%27s_Adversaries_Through_Sanctions_Act

Transcript -

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Lets discuss about today's topic.

Early this year, US Treasury Department informed Congress, that Countering America's Adversaries Through Sanctions Act has been impacting Russian Defense Deals.



Due to these sanctions, foreign governments have abandoned planned, or announced Purchase of Russian defense equipment.





Since the payment for these deals is made in American dollars, foreign government agencies or banks obviously don't want to invite strict american sanctions by having transaction with companies in Russian defense or intelligence sectors.



Since the law has already started showing its effect, US Treasury  department confirmed there is no need to impose additional penalties.





Basically this act deny Russia defense equipment sale revenue, which is being used against American interests and increases destabilization in the world.



In one of our videos, We have discussed, Indian planned purchase of S400 system getting delayed due to this act.



However, this act has already impacted all announced Russian defense deals.



Indian public sector banks have stopped scheduled payment to Russian defense firms.



Right now, Payment worth over 100 Million Dollars have already been blocked.

If the issue is not handled, Russia India defense trade worth 2 Billion Dollars will come to a grinding halt.





For example, For repair of damaged I N S Chakra Nuclear Submarine Russia is to be paid 15 Million dollars. Now, Indian banks are not willing to take the risk of making the payment.



This act is certainly leaving serious gaps in the Indian defense preparedness.



At the highest level of our government, The engagement is going on with Russian and American government to find a solution.



For example, Russia may be paid in Russian Ruble or Indian Rupees. India may also create a separate bank for Russian defense payment. This bank will not have any exposure to America, thus avoiding the act.



But lets be very clear, these options are not the best ones, and more time is needed to study and implement these options.



In this background, India being major defense partner of America needs urgent waiver from this act.



However, we would like to say, Russia should also engage with America to find a meaningful resolution.



In the end, Russian economy is also getting impacted. That's where India needs to press Russian government to engage with American government.



Lets be realistic here, with the widely perceived Russian meddling in last american election, its  very difficult for congress to grant India waiver anytime soon. Specially when the act has just started showing first sign of its effect.



Just like India, the legislative process is very slow in United States.



Meanwhile, Indian government needs to find intermediate solution, so that ongoing defense deals are not stopped.



As far as we think, its shared responsibility of India and Russia to fix this as soon as possible.



The bigger issue is, if India and Russia finds a way out,  As per this act, the american administration is bound to figure out new sanctions to close this new way.



That's why, lasting solution needs to be found sooner or later.



As per your views, should Russia not work with American government to find the solution?



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 for watching this video.

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