Despite sanctions, govt to trade with Russia, Iran; India-US ties stressed?

Union Minister Sushma Swaraj said the Modi govt's foreign policy wasn't framed either under pressure of a foreign country, or out of love for a foreign country, or in reaction to another country

India-US ties seem to have hit a rough patch after making great strides in the last few years.

At the heart of the issues are the two country's contrasting relationship with Russia and Iran. While US has imposed sanctions on both the countries, India has suggested that it will continue dealing with both the nations.

The US on Monday expressed concerns about India's planned Rs 400 billion deal to buy the sophisticated, long-range S-400 air defence system from Russia. 

“There is a lot of concern in the US, in both the administration and the Congress, over the S-400 system. There is concern that any country and not just India that acquires that system will complicate our ability to work towards interoperability together,” Chairman of the US Arms Service Committee Mac Thornberry said on Monday.

According to sources, India has concluded price negotiations with Russia and is now trying to find a way out to evade the provisions of a US law (CAATSA) that seeks to punish countries and entities engaged in transactions with the defence or intelligence establishment of Russia.

The deal is likely to be announced before an annual summit between Prime Minister Narendra Modi and Russian President Vladimir Putin in October.

The US had announced sanctions against Russia under the stringent law for its alleged meddling in the American presidential election in 2016.

Similar is the case with Iran. US President Donald Trump this month withdrew the US from the Iran nuclear deal and ordered the reimposition of sanctions suspended under the 2015 accord.

India, however, has made it clear that it has not abided by the US sanctions on Iran or Venezuela in the past, neither will it this time.

“It is our clear stand that we abide by UN sanctions, not country-specific sanctions. India-Iran trade had continued the last time as well,” External Affairs Minister Sushma Swaraj said on Monday.

The US has reportedly moved to address the issues. Thornberry said the US was making sanctions against Russia "flexible" for its allies like India to allow them breathing room to continue dealing with Moscow only to maintain their legacy equipment.

With agency inputs