India, Russia find way to skirt US threat of sanctions on arms deals

The arrangement would enable India to pay the first installment soon for two warships that Russia is building for its navy, said sources

India and Russia have agreed on a new payment method through their national currencies for multi-billion-dollar defense deals, in a bid to avoid risks created by the US threat of sanctions and banking restrictions.

The arrangement would enable India to pay the first installment soon for two warships that Russia is building for its navy, two people familiar with the matter said in New Delhi, without elaborating. Defense contracts will be settled in rubles and rupees under a payment agreement reached by the central banks of Russia and India, said a person in Moscow with knowledge of the preparations.

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