Russia, India sign weapons deals worth billions

Russia, India sign weapons deals worth billions during Putin's visit to India

Associated Press
Russia, India sign weapons deals worth billions
.

View photo

Russian President Vladimir Putin, left, shakes hands with Indian Prime Minister Manmohan Singh, right, before a meeting at his residence in New Delhi, India, Monday, December 24, 2012. (AP Photo/ Mustafa Quraishi, Pool)

NEW DELHI (AP) -- Russia and India signed weapons deals worth billions of dollars Monday as President Vladimir Putin sought to further boost ties with an old ally.

Putin and Indian Prime Minister Manmohan Singh hailed cooperation between their countries as officials signed a $1.6 billion deal for 42 Sukhoi Su-30 fighter jets that will be license-built in India from Russian components and a $1.3 billion contract for the delivery of 71 Mil Mi-17 military helicopters.

"We agreed to further strengthen the traditions of close cooperation in the military and technical areas," Putin said after the signing.

Singh said the talks included discussions on the security situation in the region, including Afghanistan.

"India and Russia share the objective of a stable, united, democratic and prosperous Afghanistan, free from extremism," Singh told reporters after the talks.

Russia and India have shared close ties since the Cold War, when Moscow was a key ally and the principal arms supplier to New Delhi.

The ties slackened after the collapse of the Soviet Union, but grew stronger again after Putin came to power in 2000, seeking to revive Moscow's global clout and restore ties with old allies.

While the volume of Russian-Indian trade has risen sixfold since 2000 and is expected to reach $10 billion this year, the growth has slowed in recent years. And even though India remains the No. 1 customer for Russia's arms industries, Moscow has recently lost several multibillion-dollar contracts to Western weapons makers.

Russia has maintained its strong positions in the Indian market with $30 billion worth of arms contracts with India signed in 2000-2010 that envisaged supplies of hundreds of fighter jets, missiles, tanks and other weapons, a large part of which were license-produced in India. The countries have cooperated on building an advanced fighter plane and a new transport aircraft, and have jointly developed a supersonic cruise missile for the Indian Navy.

But the military cooperation has hit snags in recent years, as New Delhi shops increasingly for Western weapons. The Indians also haven't been always happy with the quality of Russian weapons and their rising prices.

In one notable example, in 2004 Russia signed a $1 billion contract to refurbish a Soviet-built aircraft carrier for the Indian Navy. While the deal called for the ship to be commissioned in 2008, it is still in a Russian shipyard and the contract price has reportedly soared to $2.3 billion. The target date for the carrier's completion was moved back again this year after it suffered major engine problems in sea trials. Russian officials now promise to hand it over to India in the end of 2013.

India has also demanded that Russia pay fines for failing to meet terms under a 2006 contract for building three frigates for its navy, the third of which is yet to be commissioned.

Russia recently has suffered major defeats in competition with Western rivals in the Indian arms market.

Last year, Russia lost a tender to supply the Indian Air Force with 126 new fighter jets worth nearly $11 billion to France's Dassault Rafale. And last month, Boeing won India's order for a batch of heavy-lift helicopters worth $1.4 billion.

Russia has sought to downplay recent defeats of its arms traders, saying that other weapons deals with India are under preparation.

As part of its cooperation with India, Russia also has built the first reactor at the Kudankulam nuclear power plant and is building a second unit there. The project has been delayed by protests by anti-nuclear groups and local residents.

The head of the Russian nuclear corporation Rosatom, Sergei Kiriyenko, told reporters Monday that the reactors in Kudankulam are the safest in the world, adding that studies have shown that they would have withstood a disaster like an earthquake and tsunami that caused multiple meltdowns and radiation leaks at the Fukushima nuclear plant in Japan last year. Kiriyenko said Rosatom plans to build more reactors in India.

Putin's visit was scheduled for late October, but was delayed as the Russian leader suspended foreign travel for about two months. The Kremlin acknowledged that he was suffering from a muscle pulled during judo training. Putin resumed active travel earlier this month, making several foreign trips.

Rates

View Comments (42)

Recommended for You

  • Tycoon buys 30 Rolls-Royces for Macau hotel

    A Hong Kong tycoon has placed the biggest ever order for Rolls-Royce cars, agreeing to buy 30 Phantoms to chauffeur guests at a luxury resort he's building in the global gambling capital of Macau. Stephen Hung's $20 million purchase surpasses the 14 Phantoms bought by Hong Kong's Peninsula Hotel in…

    Associated Press
  • $40-Off Limited Time Offer From Norton

    Award-winning PC protection that doesn't slow you down. Easy installation & money-back guarantee. Download today with our $40-off limited time offer.

    AdChoicesNorton by SymantecSponsored
  • Tycoon's arrest sends shock wave through Russia

    Tycoon's arrest sends shock wave through Russia MOSCOW (AP) — The arrest of a Russian telecoms and oil tycoon has sent shock waves through the country's business community, with some fearing a return to the dark days of a decade ago, when the Kremlin asserted its power by imprisoning the country's…

    Associated Press
  • Before You Buy Alibaba, Check Out 4 Top China Stocks

    Before You Buy Alibaba, Check Out 4 Top China Stocks While investors gear up for Alibaba Group 's (BABA) hotly anticipated initial public offering, don't forget about other Chinese stocks that are worth keeping an eye on. Today's Young Guns Screen of

    Investor's Business Daily
  • As Fed takes baby steps, Cramer's trick for profit

    In turn, Cramer says making money in the market, involves looking at the environment through the lens of the Fed. "The trick is to remember that they speak for the common person," Cramer said. "The Fed wants the common person to make money." With that backdrop always in mind, Cramer says it becomes…

    CNBC
  • "The Retiree Next Door": How successful retirees stretch their savings

    "The Retiree Next Door": How successful retirees stretch their savingsBy the time she hit her late 40s, Toni Eugenia wasn’t sure she would ever be able to retire. Eugenia, 56, a pharmacy technician who lived in Houston, was nearly $200,000 in debt and

    Yahoo Finance
  • Play

    Citi, Bank of America Offer Discounted Mortgages

    Citigroup and Bank of America will offer mortgages at discounted interest rates to help borrowers with low incomes or subprime credit. AnnaMaria Andriotis joins MoneyBeat. Photo: Getty.

    WSJ Live
  • CNBC Anchor Calls Out Fed-Hater Bill Fleckenstein In Startling Shouting Match

    CNBC Bill Fleckenstein of Fleckenstein Capital appeared on CNBC's Futures Now program on Tuesday. Futures Now host Jackie DeAngelis came out swinging, asking Fleckenstein right at the top if he was willing to admit that he had misunderstood monetary policy. Sounding taken aback, Fleckenstein…

    Business Insider
  • Beanie Babies creator's sentence debated in court

    Beanie Babies creator's sentence debated in court CHICAGO (AP) — Federal prosecutors seeking to put the billionaire creator of Beanie Babies in prison for hiding millions in Swiss bank accounts told appellate court judges Wednesday that the toymaker's sentence of probation threatens to erode the…

    Associated Press
  • Apple to unveil new iPads, operating system on Oct. 21 : report

    The company plans to unveil the sixth generation of its iPad and the third edition of the iPad mini, as well as its operating system OS X Yosemite, which has undergone a complete visual overhaul, the Internet news website said. Trudy Muller, a spokeswoman for Apple, declined to comment. The iPad is…

    Reuters
  • Gilead Stock Is Falling On These Drug Setbacks

    Gilead Stock Is Falling On These Drug Setbacks Gilead Sciences (GILD) shares are backsliding Wednesday on news that the patient drop-out rate for hepatitis C drug Sovaldi is quadruple that of clinical trials. In addition, the biotech's Phase 2 study results

    Investor's Business Daily
  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • Play

    What the Fed Meeting Means for Bonds

    Janet Yellen & Co. are expected to hint at their timetable for raising interest rates. Here's how investors should prepare ahead of the meeting.

    WSJ Live
  • Embraer to sell 50 E-175 jets to Republic in $2.1 billion deal

    Brazil's Embraer SA, the world's third largest commercial planemaker, said on Wednesday it booked a firm order from U.S. The deal, which will be included in Embraer's order book for the third quarter, is valued at $2.1 billion, the planemaker said in a securities filing. The planes will be operated…

    Reuters
  • American Express® Cards

    Earn Cash Back, Travel, or Points. Find the Card That's Right For You!

    AdChoicesAmerican Express®Sponsored
  • Here's What Mark Cuban Wishes He Knew About Money In His 20s

    Cuban is the owner of the Dallas Mavericks basketball team. Billionaire investor and entrepreneur Mark Cuban is generous with his advice. When we asked him what he wishes he'd known about money in his 20s, he said:

    Business Insider
  • SHOE COMPANY: Our CEO Just Disappeared And Most Of The Money Is Gone

    "and like that: he's gone." This is an actual headline from a company press release: "CEO and COO disappeared, most of the company's cash missing." (Via FastFT) In a statement, German-based shoe company Ultrasonic said its CFO,  Chi Kwong Clifford Chan, has been unable to reach the company's CEO,…

    Business Insider
  • Costco Stores in Canada to Stop Taking American Express

    “The credit card relationship between American Express and Costco Wholesale Canada will not be renewed when it expires” on Dec. 31, the company said today in an e-mail to Canadian customers. The message was attributed to Lorelle Gilpin, vice president of marketing and membership for Costco…

    Bloomberg
  • Billionaire Investor Says Chinese People Work Harder And Western Companies Could Face Deep Trouble After Alibaba IPO

    Michael Moritz, the chairman of VC firm Sequoia Capital, is a huge fan of Chinese internet companies and reiterated his enthusiasm for the Chinese market in an interview with The Wall Street Journal Wednesday. The billionaire investor described the Alibaba IPO as a “major landmark event” that is as…

    Business Insider
  • Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More

    Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More Stocks were firm on Wednesday morning ahead of the FOMC meeting outcome. Tuesday’s rally may have sparked higher interest again, and investors are looking for bargains

    24/7 Wall St.
  • 6 Things Debt Collectors Wish You Knew

    The work debt collectors do is not popular, and has become increasingly derided by those who don’t like what we do or simply don’t know the facts about debt collection. Too often, debt collection is painted with a broad brush to create a portrait that isn’t accurate, and doesn’t properly educate…

    Credit.com
  • Four Things That Can Send Your Resume to the Trash

    We asked recruiting managers and career experts about resume errors that cause them to crumple and toss a resume - their answers may surprise you.

    AdChoicesMonster.comSponsored
  • Boeing may have outfoxed Musk, but it could have bigger problems

    Elon Musk is arguably one of the greatest entrepreneurial minds of the 21st Century, but he was outsized an old school aerospace giant. Boeing won the bulk of NASA’s contract for a space taxi.  One of the other companies vying for the deal is SpaceX, the company headed by Tesla’s Musk, will get a…

    Talking Numbers