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Putin arrives in India for arms deal worth billions of dollars.

Putin arrives in India for arms deal worth billions of dollars.

Highlights

The Russian president to ink defence deal worth $5bn as Moscow plans to cement ties amid opposition from the US.

Russian President Vladimir Putin has arrived in India for a two-day visit during which Moscow is expected to ink a weapons deal worth billions of dollars, despite threat of sanctions by the United States.

Indian Prime Minister Narendra Modi on Thursday evening welcomed Putin in capital New Delhi and the two headed off to an informal dinner.

Official talks are expected to begin on Friday, when nearly 20 bilateral agreements will be signed in areas such as defence, nuclear energy, space exploration and economy. The Kremlin said the "key feature" of a deal with India would be the signing of a $5bn deal for the S-400 air defence system, despite a US law that sanctions any country that trades with Russia's defence and intelligence sectors.

US sanctions

On the eve of Putin's arrival, the US poured cold water on India's efforts to obtain a waiver to avoid sanctions put in place under the Countering America's Adversaries Through Sanctions Act (CAATSA). Upgrades in arms systems "including the S-400 air and missile defence system" would be a particular focus for CAATSA, a US State Department spokesperson was quoted as saying by India's PTI news agency.

"The S-400 is attracting attention due to the US-Trump overhang. With the US' domestic legislation discouraging countries like India from engaging in 'significant' trade with Russia, there is a high-visibility political subtext about how this deal will impact the India-US bilateral," said Commodore (retired) Uday Bhaskar, director at The Society for Policy Studies.

"The US response will be evident by November 5, when both the trade with Russia and the hydrocarbon imports from Iran will come to a tipping point. If the US decides to go ahead with its domestic legislation and invoke penalties/sanctions against New Delhi, it would test the resilience of the India-US bilateral," he said.

"This would be an anomalous situation, wherein the US would place both India and China in the same 'sanctions' basket - unlikely bed-fellows indeed. Beijing will monitor this S-400 issue very closely for long-term strategic implications."

Last month Washington slapped financial sanctions on the Chinese military for buying Russian Sukhoi Su-35 fighter jets and the S-400.

However, the US is in a difficult position when it comes to India; it wants to enhance ties with New Delhi to counter China's growing assertiveness, something that has also rattled India.

Washington and New Delhi announced plans last month for joint military drills in 2019 and agreed on the exchange of sensitive military information. The US is now India's second-biggest arms supplier.

But Russia remains number one; new deals with the Asian giant would be a major win for Moscow - and a big snub to the US.

Putin and Indian Prime Minister Narendra Modi, who appear to enjoy a personal rapport, are also likely to discuss a deal for four Krivak-class frigates worth $2bn and 200 light utility Ka-226 helicopters pegged at $1bn.

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Highlights

The Russian president to ink defence deal worth $5bn as Moscow plans to cement ties amid opposition from the US.