India moved ahead to PURCHASE S400 from Russia!!

In this video, we will discuss about DAC approving purchase of S400

Reference -
https://timesofindia.indiatimes.com/india/india-moves-towards-acquiring-russian-s-400-missile-systems-despite-us-opposition/articleshow/64810964.cms
https://www.indiatoday.in/india/story/us-to-impose-sanctions-if-india-buys-s-400-missiles-from-russia-1273980-2018-06-30
http://www.executivegov.com/2018/06/house-moves-fiscal-2019-defense-bill-to-negotiations-with-senate/
https://news.usni.org/2018/06/19/senate-passes-fiscal-year-2019-defense-bill
https://www.rt.com/business/430185-russia-india-defense-deals-dollar/

Transcript - 

Hello Friends, welcome to Real Quick Info channel. Lets discuss about today's topic.

You may recall, The Defense Acquisition Council (D AC ) had approved the purchase of Russian Advance S400 Triumph  Air Defense systems from Russia on 18 December 2015.



However, over last two and half years, Intense negotiations were conducted, which resulted into minor changes in deal approved last time by D A C.



Therefore, D A C has now approved the revised deal S400 Missile defense system.



Now as per the process, deal proposal will go to finance ministry for clearance.



Post getting financial clearance, it will have to get final approval from Prime Minister led cabinet committee on security.



Though India has certainly moved ahead with the decision to buy this strategic defense system as of now, yet please expect the final decision to be taken just before President Putin's visit for Annual India Russia bilateral summit in October this year.



Another important aspect of this deal is the decision to integrate S400 Systems with Integrated air command and control system of Indian air force.



This would ensure the synergy in between S400 and existing air defense system. Thus enhancing the capability of Indian Air defense system.



The importance of this decision taken by D A C increases manifold with the simple fact, that the hope to get waiver from American sanctions has just recently taken a big hit.



You may recall, In May 2018, US House of representative has passed a 2019 Defense bill with four India specific clauses, which allow President of United States to grant conditional waiver to India in case India shows reduction in the reliance on Russian defense equipment.



However, US Senate has just passed another 2019 Defense Bill, which doesn't carry any clause  to grant US president authority to provide conditional waiver from US sanctions to select allies including India.



however, House of representative is in no mood to approve the draft, which has just been approved by Senate.



Rather it has moved its original version to conference committee, which will have members from both House of representative and Senate.



Now negotiation will be conducted, and by the end of this month new draft will come out from conference committee.



Thereafter this new draft of 2019 defense bill once again go through same formal approval process in House of representative and Senate.





The defense bill 2019 will be passed for sure, however the hope to get waiver from American sanctions is certainly reduced a lot now.



We have to be ready to face the scenario of handling India Russia deals in the environment of American sanctions.



Countering America's Adversaries Through Sanctions Act is American law, Trump administration will have to act accordingly and impose sanctions against India for buying defense equipment from Russia.



Some experts have suggested, the upcoming Putin Trump meeting may give berth to some hope for India to continue defense engagement with Russia.



However, given American legislative bodies are still in no mood to dilute the Countering America's Adversaries Through Sanctions Act. There is effectively little hope of buying Russian weapons without American sanctions.





In this background, India and Russia are actively engaged to find ways to avoid American sanctions.



One option, which appears possible to make payment using Rupees to Ruble conversion.



Theoretically this method may allow India to make payment for Russian defense equipment.



In practical world, American administration may still figure out the way to punish India for these deals.



Because the intent behind this bill was that American congress wants to punish Russia for its alleged meddling in 2016 Presidential election.



Fearing Congressional review of his actions, as per the law President trump may be forced to punish India in some other way.



As India is determined to buy Russian defense equipment including S400, we should be ready to face any eventuality.



This effectively, means total cost of Russian defense equipment may increase for India.

After all, India will have to pay the price for the effects American sanctions as well.



In the light of this argument, it becomes very important for us to calculate the real cost of Russian defense equipment.


For now, India has shown praiseworthy determination to move ahead with S400 defense equipment decision irrespective of American sanctions.

Hopefully, Russia would appreciate this and offer friendly concessions. After all, confronting American sanctions, India has ensured that Russian defense equipment sale base revenue stream doesn't dry up.


Please find the reference links of this video in the description box below. Thank you friends for watching this video.

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