In order to support the export of
weapons under sanctions, Rosoboronexport wants to alter existing
contracts to be payable in rupees and yuans. China and India account for
about half of Russia’s arms exports.
Mike Wheatley
Rostec
has said its negotiating on behalf of Rosoboronexport, the state
intermediary agency for Russia’s exports and imports of defense-related
and dual use products, technologies and services, to make existing
export contracts payable in Chinese Yuan and Indian rupees, Vedomosti reports.
Sergey Chemezov, CEO of Rostec, told the newspaper that U.S. and E.U.-backed sanctions had led to the delay of several payments on existing contracts in 2014.
“Negotiations are almost complete for a number of contracts,” Chemezov said. “Our banks have a presence in both China and India, so it is easy to convert payments into rubles. For some projects have already signed contracts in customer’s respective national currencies, with prices still fixed in dollars or euros.”
Speaking at a meeting of the Commission on Military-Technical
Cooperation, President Vladimir Putin said Russia has sold weapons worth
$15.5 billion so far in 2015. That figure has remained constant over
the last three year, Putin added. A recent study by the Stockholm
International Peace Research Institute, published in March 2015, showed
that from 2010 to 2014, some 39 percent of Russian arms exports went to
India, with another 11 percent going to China, meaning half of all
Russia’s arms exports go to just two nations. The same study noted that
Russia was the second largest supplier of arms exports in the world
after the United States, with a 27 percent market share over the
same period.
China and India are likely to remain Russia’s main customers for arms exports in the coming years, barring some radical changes to the world’s geo-political situation, said Ruslan Pukhov, Director of the Center for Analysis of Strategies and Technologies. According to him, both countries buy a full range of weapons systems from Russia, ranging from small arms to aircraft and ships. He noted that China was the first foreign buyer of the new S-400 anti-aircraft missile system. Meanwhile, one of Russia’s largest ever contracts was for the aircraft carrier “Vikramaditya”, which was sold to India for an estimated $2.3 billion in 2013.
Russia’s Central Bank said last April that the settlement of contracts in yuan and rupees would not contravene regulatory restrictions, Vedomosti added.
Source: Vedomosti via RBC.
Image credit: takazart via Pixabay.com
http://russia-insider.com/en/business/russia-negotitate-arms-sale-rupees-yuan/ri7625
Sergey Chemezov, CEO of Rostec, told the newspaper that U.S. and E.U.-backed sanctions had led to the delay of several payments on existing contracts in 2014.
“Negotiations are almost complete for a number of contracts,” Chemezov said. “Our banks have a presence in both China and India, so it is easy to convert payments into rubles. For some projects have already signed contracts in customer’s respective national currencies, with prices still fixed in dollars or euros.”
China and India are likely to remain Russia’s main customers for arms exports in the coming years, barring some radical changes to the world’s geo-political situation, said Ruslan Pukhov, Director of the Center for Analysis of Strategies and Technologies. According to him, both countries buy a full range of weapons systems from Russia, ranging from small arms to aircraft and ships. He noted that China was the first foreign buyer of the new S-400 anti-aircraft missile system. Meanwhile, one of Russia’s largest ever contracts was for the aircraft carrier “Vikramaditya”, which was sold to India for an estimated $2.3 billion in 2013.
Russia’s Central Bank said last April that the settlement of contracts in yuan and rupees would not contravene regulatory restrictions, Vedomosti added.
Source: Vedomosti via RBC.
Image credit: takazart via Pixabay.com
http://russia-insider.com/en/business/russia-negotitate-arms-sale-rupees-yuan/ri7625
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