Russia, India to resolve suspended arms contract issue

Russia and India are planning to solve the issue pertaining to resuming of payments in the Russian arms supply contract.

Russian Deputy Prime Minister Yuri Borisov on Friday told the reporters that the issue of payments from New Delhi, which were suspended due to the United States' sanctions against Russian state arms exporter, Rosoboronexport will be resolved by October. His statement came ahead of the bilateral intergovernmental commission's meeting.

Earlier, the Vedomosti newspaper, citing its sources, said that payments on the part of India on most arms contracts with Russia have not been received since April 2018. The newspaper said it is due to sanctions imposed in line with the Countering America's Adversaries Through Sanctions Act (CAATSA) against Rosoboronexport, which threaten its partners with the so-called secondary sanctions.

"Intensive talks are underway. Concrete solutions have been outlined, instructions have been given to all financial institutions to... solve this problem as soon as possible. I think that this issue will finally be resolved at the summit in October of our supreme commander-in-chief with the leader of India," Borisov said.