Recently, India has received the first order for this from the Philippines for $365 million. India and Russia have also signed an agreement to build four frigates together with the supply of Su-MKI and MiG-29 aircraft. These may be subject to restrictions. Apart from this, both the countries are also cooperating to build Rooppur Nuclear Power Plant in Bangladesh, this project may also be affected by US sanctions. These restrictions may further increase the price of crude oil in the international market, which will be bad news for the Indian economy. Due to the Ukraine Crisis, the price of crude oil has already reached close to $100 per barrel. Finance Minister Nirmala Sitharaman also said on Tuesday that rising oil prices may increase the challenge to financial stability. In addition, Indian public sector companies have invested around $14 billion in Russia, which is expected to be affected by the ban. These restrictions could also put a strain on bilateral trade between Russia and India of $10 billion, which the two countries have targeted to increase to $ 25 billion by 2025.
The US, European countries, Japan, Australia and Canada have announced tough economic sanctions on Russia after Vladimir Putin recognized Donetsk and Luhansk in Ukraine’s Donbass region as separate countries. These restrictions have made it difficult for Russia to raise funds from the international market. Germany has halted work on a vital gas pipeline with Russia. These restrictions will also have an effect on India. In particular, on the purchase of weapons. Russia is the largest arms supplier to India with 60 per cent. Now America can increase the pressure on India not to buy arms from Russia. Its heat may also fall on the S-400 missile defense system deal. India had signed an agreement with Russia in October 2018 to buy five of its units for $5 billion. One of these units has been installed and the other is expected to be installed by March. Russia has promised to deliver the remaining three units to India by September this year. America had refused India for this deal. He threatened to impose sanctions on India under his CATSA Act of 2017 (Countering America’s Adversaries Through Sanctions Act). However, he hasn’t done so yet. The export of BrahMos missiles may also be affected by the sanctions on Russia. India and Russia have jointly manufactured this missile.