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.
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
This post first appeared on Russia Insider
Anyone is free to republish, copy, and redistribute the text in this content (but not the images or videos) in any medium or format, with the right to remix, transform, and build upon it, even commercially, as long as they provide a backlink and credit to Russia Insider. It is not necessary to notify Russia Insider. Licensed Creative Commons