India to Seal $2 Billion Submarine Deal with Russia During Putin Visit

As per Bloomberg report, India is set to pay approximately $2 billion to lease a nuclear-powered submarine from Russia. The agreement finalises the delivery of the vessel after nearly a decade of discussions, coinciding with President Vladimir Putin's visit to New Delhi. 

President Putin is due to arrive in India on Thursday for his first visit since Russia's full-scale invasion of Ukraine. During his visit, he will meet with Prime Minister Narendra Modi to emphasise the strengthening of defence and energy relations between the two nations. 

Negotiations Between Russia and India Over the Years  

Negotiations for leasing the attack submarine from Russia had stalled over the years due to price disagreements. However, the 2 parties have now reached an agreement, with Indian officials visiting a Russian shipyard in November.  

India anticipates receiving the vessel within 2 years, although the complexity of the project could delay this timeline. 

Lease Terms for Russian Submarine 

Under the lease agreement, the Russian attack submarine cannot be used in warfare. Instead, it will serve as a tool for India to train sailors and enhance nuclear submarine operations as the country progresses with the development of its own vessels. 

The Russian-leased submarine will remain with India's Navy for a period of 10 years. The previous Russian vessel, also leased for 10 years, was returned in 2021, according to reports. The lease agreement will include provisions for maintenance. 

Read More: India-Russia Trade Deficit in Focus Ahead of Putin’s Visit! 

Conclusion 

The $2 billion Indo-Russian submarine lease deal during President Putin’s visit would reaffirms bilateral defence cooperation, while assisting India in developing critical undersea capabilities.  

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