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India's S-400 deal with Russia may trigger US sanctions: Congressional report

January 5, 2021

India's multi-billion dollar deal to purchase the Russian made S-400 Air Defence system may trigger US sanctions on New Delhi, a US Congressional report has warned.

The Congressional Research Service - an independent and bipartisan research wing of US Congress - in its latest report to Congress, said India is "eager for more technology sharing and co-production initiatives, while the United States urges more reforms in India's Defence offsets policy and higher Foreign Direct Investment caps in its Defence sector."

Prepared for the members of the Congress for them to take informed decisions, the report went on to warn that "India's multi-billion dollar deal to purchase the Russian-made S-400 air defence system may trigger US sanctions on India under the Countering America's Adversaries Through Sanctions Act."

The CRS� reports are neither an official report of the US Congress nor reflect the view of Congressmen. They are prepared by independent experts for the lawmakers to take informed decisions.

In October 2018, India had signed a USD 5 billion deal with Russia to buy five units of the S-400 Air Defence missile systems, despite a warning from the Trump administration that going ahead with the contract may invite US sanctions. In 2019, India made the first tranche of payment of around USD 800 million to Russia for the missile systems.