Russia aims to deliver two S 400 air defence units by 2024 end as payment woes ease up

India could get the remaining squadrons of S 400 air defence systems from Russia by the end of next year, with indications that problems in the process of payments are easing out. India has received three squadrons of the missile system, out of which two have been deployed on the east and west borders.

Sources said that the Russian side has been asked to share timelines for the delivery of the two remaining squadrons as payments are being processed. While the delivery of the systems is delayed past the prescribed timeline, the Russian side is looking to deliver the two squadrons by end of 2024, sources said.

As reported, the Indian Air Force had sharply reduced its projected spending on capital procurement for the 2023-24 financial year due to delays in supply of S 400 air defence system and spares for the fighter fleet.


The $5.43-b deal for five squadrons of S 400 was inked with Russia in 2018, with deliveries scheduled to be completed by mid-2024. In the 2022-23 financial year, the air force had projected capital expenses of Rs 85,322 crore, though the actual allocation was lesser. However, in the 2023-24 budget, it projected expenses of Rs 58,808 crore, with the entire amount being allotted.

This lower demand was due to stage-wise payments for the S 400 not being disbursed, due to delays by the Russian side. A major problem in managing legacy defence deals with Russia has been the payments process as Russian banking entities are under western financial sanctions.

This limits the number of Indian banks willing to do business with Russia, specially for arms trade. While some trade has happened using the rupee-rouble route, it is not adequate to meet requirements of the armed forces that purchase millions of dollars worth of spares, parts and equipment from Russian entities on an yearly basis.