Russian Federation and India sign R73 billion air-defense deal

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India will finally acquire the S-400 Triumf, one of the world's most lethal surface-to-air missiles, from Russian Federation amid a threat of tough sanctions from the US.

On Friday, apart from the bilateral talks, the two leaders will address the India-Russia Business forum and interact with a group of 20 students (10 Russian and 10 Indian) from India's Atal Innovation Mission and Russia's Creative School, SIRIUS.

The S-400 is an upgraded version of the S-300 systems.

Russian President Vladimir Putin meets India Prime Minister Narendra Modi in Ufa on July 08, 2015, during the BRICS/SCO Summits - Russia 2015 in Ufa, Bashkortostan, Russia.

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The deal, said analysts, demonstrates that India is seeking a balance as it steadily grows strategic ties with Washington, but is unwilling to forgo its long-standing defense partnership with Russian Federation.

Besides, in the third defence deal, India will be purchasing 200 light utility Ka-226 helicopters for $1 billion (Rs 737.85 crore at current price). In recent years, the USA has also become a significant source, with purchases adding up to $15 billion over the past decade.

India has already given indications that it will go ahead with the deal notwithstanding the United States sanctions. The US is now India´s second biggest arms supplier. The deal has been inked despite concerns flagged by the U.S., which has slapped sanctions on Russian Federation, about the purchase of the missile systems capable of knocking down jets, missiles and unmanned aerial vehicles at a range of 400km.

Ahead of the visit, the Russian President's aide Yuri Ushakov was quoted by media as saying that Russia and India are planning to sign more than 20 documents at the end of the Putin-Modi talks and that Putin will oversee the signing of the Dollars 5 billion deal.

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The two countries have mutual benefits in supporting Afghanistan, the struggle against terrorism, Indo-Pacific events and climate change, the prime minister said.

The contract is estimated to be worth more than $5.43 billion (Rs 40,000 crore) deal and gives the Indian military the ability to shoot down aircraft and missiles at unprecedented ranges.

However, Washington is in a tricky position with India, seeking to bolster ties with the Asian giant to counter China's growing assertiveness, something which has also rattled New Delhi. The deals emerging from the visit will cement and amplify the continued strength of the India-Russia relations even as the US-India relations continues to grow as the US-Russia relationship continues to plummet.

Last year India and China had a military standoff over a Himalayan plateau claimed by both Beijing and Bhutan, a close ally of India.

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The law, known as the Countering America's Adversaries Through Sanctions Act (CAATSA), threatens to impinge on India's massive defence trade with Russian Federation.

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