Tag: Russia

UK PM May’s spokesman says cannot comment on Russian billionaire’s Abramovich visa delay

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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British Prime Minister Theresa May’s spokesman said on Monday the government could not comment on why Russian billionaire Roman Abramovich’s visa was yet to be renewed.

Abramovich, best known in Britain as the owner of Premier League soccer club Chelsea, is in the process of renewing his visa as part of a standard procedure after it expired last month but it is taking longer than usual, sources told Reuters on Sunday.

Relations between Moscow and London have been strained since the poisoning former Russian double-agent Sergei Skripal in Britain in March, an act Britain has blamed on Russia but in which the Kremlin denies any involvement.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Talks with Putin will strengthen India’s ‘special and privileged’ strategic partnership with Russia, says PM

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Prime Minister Narendra Modi on Sunday expressed hope that his talks with Russian President Vladimir Putin would further strengthen the “special and privileged” strategic partnership between India and Russia.

In a series of tweets first in Russian and then in English on the eve of his visit to Russia, he said, “Am confident the talks with President Putin will further strengthen the Special and Privileged Strategic Partnership between India and Russia.”

“Greetings to the friendly people of Russia. I look forward to my visit to Sochi tomorrow and my meeting with President Putin. It is always a pleasure to meet him,” Modi said in another tweet.

The two leaders will primarily focus on pressing global and regional issues, including impact of the US withdrawal from the Iran nuclear deal, during their informal summit in Russian city of Sochi on Monday.

Official sources have said the two leaders will meet for four to six hours for the “agendaless” talks where deliberations on bilateral issues are likely to be very limited.

They said the issues on the table may include economic impact on India and Russia in the wake of the US withdrawal from the Iran nuclear deal, situation in Afghanistan and Syria, threat of terrorism, and matters relating to the upcoming Shanghai Cooperation Organisation (SCO) and BRICS summits.

The sources said the possible impact of the US sanctions against Russia under the Countering America’s Adversaries Through Sanctions Act (CAATSA) on Indo-Russia defence cooperation might also figure during the talks between Modi and Putin.

India is not going to allow its defence engagement with Russia to be dictated by any other country, the sources have said, adding New Delhi has been lobbying with the Trump administration on the issue.

The aim of the informal summit is to use the friendship and trust between the two countries to create convergence on key global and regional issues, the sources said.

The two leaders may also deliberate on extending Indo-Russia civil nuclear cooperation to third countries, possible areas for cooperation for the International North-South Transport Corridor (INSTC) project, India’s engagement with five-nation Eurasian Economic Union (EAEU) and the situation in the Korean peninsula.

The sources said the large part of the informal meeting between Modi and Putin would be one-to-one and there might be limited segment for restricted delegation-level discussions.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Chelsea owner, Roman Abramovich’s visa renewal pending with the UK authorities

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Russian oligarch, Roman Abramovich’s visa is yet to be renewed by the UK authorities, after it expired last month, the Financial Times reported on Sunday.

Abramovich has returned to Russia after the expiration of his investor visa, sources close to the billionaire told the Financial Times, adding that the visa has not been renewed as geopolitical tensions rise between Moscow and the west.

The owner of the Chelsea Football Club, did not attend Saturday’s  FA Cup final, where his team won the match with a score of 1-0, the report said.

The request for the renewal of the visa has not been denied by the UK authorities, but it is taking longer than the usual time to issue a new one, the UK authorities said without giving any explanations for the same, the report said.

Abramovich is Britain’s 13th richest man with a net worth of £9.3 billion, according to the Sunday times.

Fellow oligarchs Oleg Deripaska and Vladimir Potanin were both in London last week for a high-profile court case between the two men. Mr Deripaska is subject to far-reaching US sanctions that prohibit US citizens from doing business with him.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

US warns of sanctions risk to Germany-Russia gas pipeline

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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A pipeline project between Russia and Germany risks triggering US sanctions because of security concerns, a senior American diplomat said Thursday.

US Deputy Assistant Secretary Sandra Oudkirk, an energy policy expert in the State Department, said the United States opposes the Nord Stream 2 gas pipeline because it could increase Russia’s “malign influence” in Europe.

“We would be delighted if the project did not take place,” she told reporters in Berlin. Her comments came a day before German Chancellor Angela Merkel is due to fly to the Russian resort of Sochi for a meeting with Russia’s President Vladimir Putin, at which the pipeline issue is expected to be a key topic of discussion.

Oudkirk said the new pipeline would divert gas flows away from Ukraine, which depends heavily on transit fees, and could become a pathway for Russia to install surveillance equipment in the Baltic Sea, a sensitive military region.

“We are exerting as much persuasive power as we possibly can” to stop the project, she said, but noted that Congress has given the U.S. administration explicit authority to impose sanctions in connection with Russian pipeline projects if necessary.

“Any pipeline project — and there are many multiple pipeline projects in the world that are potentially covered by this sanctions authority — is in an elevated position of sanctions risk,” she said.

The $11 billion Nord Stream 2 project would double the amount of natural gas Russia can funnel to the heart of Europe from newly tapped reserves in Siberia.

While Merkel has taken a hard line on what it considers hostile Russian actions in recent years — from the conflicts in Ukraine and Syria to the chemical attack on a former Russian spy in Britain — Germany badly needs to secure its gas supply and Berlin has calculated that Nord Stream 2 offers the best deal.

Jens Mueller, a spokesman for Nord Stream 2, dismissed concerns from the U.S. and several European countries, saying the new pipeline would merely be one of many sources of natural gas for Europe.

“This pipeline can’t be used to blackmail or negatively affect any country,” he said.

Merkel sent her economy minister, Peter Altmaier, on a frantic diplomatic trip to Moscow and Kiev this week in an effort to secure a deal that would keep some gas flowing through Ukraine, which currently earns up to 2 billion euros a year from transit fees.

Altmaier has said he is optimistic that a “substantial” amount of gas will flow through Ukraine in the future.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Saudi Arabia will not act alone to fill any Iran oil shortfall, says OPEC source

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Saudi Arabia is monitoring the impact of the US withdrawal from the Iran nuclear deal on oil supplies and is ready to offset any shortage but it will not act alone to fill the gap, an OPEC source familiar with the kingdom’s oil thinking said.

On Tuesday, US President Donald Trump abandoned a nuclear deal with Iran and announced the “highest level” of sanctions against the OPEC member. The original agreement had lifted sanctions in exchange for Tehran limiting its nuclear programme.

Iran is the third-largest oil producer in the Organisation of the Petroleum Exporting Countries, after Saudi Arabia and Iraq.

“People shouldn’t take it for granted that Saudi Arabia will produce more oil single-handedly. We need to assess first the impact if there is any, in terms of disruption, in terms of a reduction of Iran’s production,” the OPEC source told Reuters on Wednesday.

“We have managed to put together this new alliance between OPEC and non-OPEC. Saudi Arabia will not in any way act independently of its partners.”

Riyadh is working closely with the United Arab Emirates (UAE), which holds OPEC’s presidency in 2018, and non-OPEC producer Russia for “coordination and market consultations,” the OPEC source said.

He said any action would be taken in coordination with all OPEC and non-OPEC partners, if needed.

Kuwait’s oil minister said on Wednesday his country would work with OPEC and non-OPEC producers to limit the impact of any possible oil disruption.

OPEC’s oil supply-cutting deal with non-OPEC producers such as Russia has helped to clear a global oil supply glut and boost prices. The agreement is due to expire at the end of 2018.

OPEC officials from Saudi Arabia, the UAE and Russia along with a few other producers in the pact are due to meet in Saudi Arabia on May 22-23 as part of a monthly meeting for the Joint Technical Committee which monitors the oil market.

Saudi Arabia, the world’s largest oil exporter, is concerned about any negative impact from the potential oil supply shortage for oil-consuming countries, the OPEC source said.

But Saudi Arabia has enough oil production capacity — currently 12 million barrels per day (bpd) — to maintain oil market stability, the OPEC source added.

Iran produces about 3.8 million bpd. Since the Iran nuclear deal went into effect, its exports have risen to about 2.5 million bpd, from less than 1 million bpd. A majority goes to Asia, with Europe receiving about 600,000 bpd.

Analysts now expect Iran’s supplies to fall by between 200,000 bpd and 1 million bpd, depending on how many other countries fall in line with Washington.

Trump And Oil Prices

Oil market have rallied over the past weeks on expectations that US sanctions could limit Iranian oil exports. Brent crude was trading above $77 at a 3-1/2 year high on Wednesday, raising concerns that prices were going too high too fast.

Trump accused OPEC last month of “artificially” boosting oil prices in a message on Twitter, the first time he has mentioned OPEC on social media.

His tweet was seen by OPEC sources as a way to appease a domestic audience unhappy about a rise in gasoline prices.

A key US ally, Saudi Arabia welcomed Trump’s decision to withdraw from the nuclear agreement.

Riyadh’s comment that it would work with OPEC and non-OPEC to lessen the impact of oil shortages was a clear indication that it has been coordinating with Washington ahead of time, sources familiar with the matter said.

“You need to work with your partners in dealing with any potential effect on supply,” the OPEC source said. “But it should be done in a collective coordinated way and that can only happen when you start to be able to assess what would be the impact.”

OPEC and non-OPEC meet next in June and they are widely expected to keep supply curbs in place until the end of 2018.

But a drop in Iranian exports due to US sanctions, plus supply disruptions in other OPEC members, such as Venezuela, could reduce supply more than planned, leading to a potential price spike.

But the OPEC source said a rise in prices due to the market’s worries about supply should not be the parameter for OPEC to adjust output.

The OPEC source said any decision in June to raise output “should be driven by a potential physical shortage or reduction in production from any oil supply source not only Iran.”

“You only handle (output) when you have a semi-clear idea of what would be the potential impact. It is too early now to do that,” the source said.

He also said Saudi Arabia did not expect any physical impact on the oil market from the US sanctions on Iran until the third or fourth quarter of this year.

OPEC’s objective its still to reduce global oil inventories to an acceptable level and any adjustment in production targets should be done in a coordinated way, the OPEC source said.

“This way you do not disrupt a mechanism that we have worked hard to put together and to sustain, just to address a short-term issue,” the source said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Putin vows to boost Russian economy as he begins 4th term

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vladimir Putin on Monday launched his fourth term as president with an ambitious call to vault Russia into the top five global economies by developing its technological products and agricultural exports.

Putin, who has sought to restore Russia’s military and diplomatic prominence on the world stage, focused almost entirely on domestic issues in his speech after taking the oath of office in a vast, vaulted Kremlin hall glittering with gold leaf.

Improving the economy following a recession partly linked to international sanctions will be a primary goal of his next six-year term, Putin said.

“Russia should be modern and dynamic, it should be ready to accept the call of the times,” he said in his inauguration speech to thousands of guests standing in three halls of the Grand Kremlin Palace.

Putin later issued an extensive decree calling for “acceleration of the technological development of the Russian Federation” and “creation of a high-performance export-oriented sector in the basic sectors of the economy, primarily in manufacturing and the agro-industrial sector.”

The 65-year-old former KGB agent, who has led Russia for all of the 21st century either as president or prime minister, has been criticised for inadequate efforts to diversify the economy from its dependence on oil and gas exports or develop the manufacturing sector.

Russia’s economy was hit hard by low world oil prices and sanctions connected to Moscow’s 2014 annexation of Crimea and military involvement in the separatist uprising in eastern Ukraine, with the ruble losing half its value between 2014 and 2016.

The country recorded an anemic improvement in 2017, with gross domestic product rising 1.5% and the ruble recovering some of its value. But the currency dropped about 8% again last month after new US sanctions.
In the decree, he foresaw Russia becoming one of the world’s top five economies by the end of his term in 2024. That would require boosting GDP by some 50%; Russia currently places about 12th in rankings of world economies.

Putin made only a brief reference to global affairs in his speech, saying “Russia is a strong, active, influential participant in international life. The security and defence capability of the country is reliably ensured. We will give these matters the necessary constant attention.”

He acknowledged that the challenges facing Russia were formidable “but we all remember well that, for more than 1,000 years of history, Russia has often faced epochs of turmoil and trials, and has always revived as a Phoenix, reached heights that others could not.”

Putin was re-elected in March with 77% of the vote.
He became acting president on New Year’s Eve 1999 following the surprise resignation of Boris Yeltsin and won election to his first four-year term in 2000. Re-elected in 2004, he left office in 2008 because of term limits, but was named prime minister and continued to steer the country from that office. He returned as president in 2012 when the post was extended to six years.

Monday’s pomp-filled inauguration was covered in assiduous detail on state television. It showed Putin working at his desk in his shirt sleeves, then donning a suit coat to begin a long, solitary walk through the corridors of the Kremlin’s Senate building before boarding a limousine for a short drive to the Grand Kremlin Palace.

Thousands of guests stood in the three halls for the inauguration. One of the most prominent was former German Chancellor Gerhard Schroeder, who is now chairman of Russia’s state oil company Rosneft and one of the most prominent Western voices arguing for an end to sanctions against Russia.
Schroeder stood with Prime Minister Dmitry Medvedev, and Putin prominently shook hands with him after the speech.

After the ceremony, Putin issued an order formally dissolving the Cabinet but nominated Medvedev to serve again as prime minister. The pro-Putin United Russia party that dominates the parliament said it would back Medvedev in a vote Tuesday, Russian news agencies reported.

Medvedev in turn made nominations for several deputy prime ministers, notably including Finance Minister Anton Siluanov as first deputy premier.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Putin takes oath for his fourth term as Russia President

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vladimir Putin took the oath of office for his fourth term as Russian president on Monday and promised to pursue an economic agenda that would boost living standards across the country.

In a ceremony in an ornate Kremlin hall, Putin said improving Russia’s economy following a recession partly linked to international sanctions would be a primary goal of his next six-year term.

“Now, we must use all existing possibilities, first of all for resolving internal urgent tasks of development, for economic and technological breakthroughs, for raising competitiveness in those spheres that determine the future,” he said in his speech to thousands of guests standing in the elaborate Andreevsky Hall of the Grand Kremlin Palace and two adjacent halls.

“A new quality of life, well-being, security and people’s health — that’s what’s primary today,” he said.

Although Putin has restored Russia’s prominence on the world stage through military actions, he has been criticized for inadequate efforts to diversify Russia’s economy away from its dependence on oil and gas exports and to develop the manufacturing sector.

Putin held onto the presidency in March’s election when he tallied 77 percent of the vote.

Putin has effectively been the leader of Russia for all of the 21st century. He stepped down from the presidency in 2008 because of term limits, but was named prime minister and continued to steer the country until he returned as president in 2012.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oil hits highest since November 2014 as Iran tensions mount

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Oil prices rose about 2% on Friday with US crude hitting its highest in more than three years as global supplies remained tight and the market awaited news from Washington on possible new US sanctions against Iran.

The May 12 deadline for announcements on potential new US sanctions on Iran bolstered the market, said Bob Yawger, director at Mizuho.

“You have the May 12 Iran and Trump headlines that support the market,” he said.

US light crude was $1.45 higher at $69.88 per barrel by 12:18 pm EDT (1718 GMT), after touching a session high of $69.97, its highest since November 2014. It was on track to gain just over 1.5% on the week.

Brent crude oil was up $1.35 at $74.98 a barrel. The global benchmark hit a 3-1/2-year closing high of $75.17 on Monday. The contract was set to end the week up 0.4%.

Investors are concerned that sanctions against Iran could cut oil supplies.

Iran’s foreign minister said on Thursday that US demands to change its 2015 nuclear agreement with world powers were unacceptable as a deadline set by President Donald Trump for Europeans to “fix” the deal loomed.

Trump has said that unless European allies rectify the “terrible flaws” in the international accord by May 12, he will refuse to extend US sanctions relief for the oil-producing Islamic Republic.

European powers still want to hand Trump a plan to save the Iran nuclear deal next week. But they have also started work on protecting EU-Iranian business ties if the US president makes good on a threat to withdraw.

Iran resumed its role as a major oil exporter in January 2016 when international sanctions against Tehran were lifted in return for curbs on Iran’s nuclear programme.

Aside from security concerns, growing US crude supplies are capping price gains.

Surging production in the Permian shale basin is outpacing pipeline capacity, while local refining issues have exacerbated oversupply in the region.

The United States now produces more crude oil than top exporter Saudi Arabia.

US inventory builds have been bearish for the past two weeks, limiting the markets upside. The weekly rig count from Baker Hughes, an indicator of forward-looking production, is scheduled to be released at 1 pm on Friday.

ANZ analysts Daniel Hynes and Soni Kumari said Brent could reach $80 a barrel by the end of this year, attributing recent strength to rising geopolitical risks and tighter global supply.

“We expect the market to tighten even further in second half 2018,” they wrote in a note to clients.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India, Russia likely to ink S-400 Triumf deal before Modi-Putin summit

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India is likely to seal a nearly Rs 40,000 crore deal to procure S-400 Triumf air defence missile systems from Russia before top leaders of the two countries hold an annual summit around October, official sources said.

Negotiations for the deal are nearing completion and differences over price and other peripheral issues were almost bridged, they said.

Sources told PTI that both Russia and India were eyeing inking of the contract before summit talks between Prime Minister Narendra Modi and Russian President Vladimir Putin which may take place either in September or October in India.

They said India was confident of finalising the mega deal with Moscow notwithstanding provisions of a US law that seeks to punish Russia for its alleged meddling in the American presidential election in 2016.

Countering America’s Adversaries Through Sanctions Act (CAATSA), which came into effect in January this year, mandates the Donald Trump administration to punish entities engaging in significant transaction with the defence or intelligence establishment of Russia.

US Defence Secretary Jim Mattis last week appealed to the Congress to urgently provide India the national security waiver, saying imposing sanctions under CAATSA for the S-400 air defence missile deal would only hit the US.

India wants to procure the long-range missile systems to tighten its air defence mechanism, particularly along the nearly 4,000 km Sino-India border.

In 2016, India and Russia had signed an agreement on the ‘Triumf’ interceptor-based missile system which can destroy incoming hostile aircraft, missiles and even drones at ranges of up to 400 km. S-400 is known as Russia’s most advanced long-range surface-to-air missile defence system.

China was the first foreign buyer to seal a government-to-government deal with Russia in 2014 to procure the lethal missile system and Moscow has already started delivery of unknown number of the S-400 missile systems to China.

Negotiators from India have been in talks with their Russian counterparts for over one and half years for the purchase of at least five systems of S-400 which are capable of firing three types of missiles.

The S-400 is an upgraded version of the S-300 systems. The missile system is manufactured by Almaz-Antey and has been in service in Russia since 2007.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

U.S. sanctions on Russian military exports could hurt countries including India

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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U.S. sanctions on Russian military exports have put the brakes on a $6 billion deal with India and may derail the arms purchases of other U.S. allies around Asia, experts say.

Under a law that U.S. President Donald Trump signed in August, any country trading with Russia’s defence and intelligence sectors will face sanctions.

The law is designed to punish Russian President Vladimir Putin for the 2014 annexation of Crimea from Ukraine, involvement in the Syrian civil war and meddling in the 2016 U.S. presidential election.

But American allies who buy weapons and equipment from Russia, the world’s second-largest arms exporter, could suffer as well.

The highest-profile example is India, which wants to buy five S-400 long-range surface-to-air missile systems that the country’s military sees as a game changer. The systems are touted as being able to counter the ballistic missiles and stealth aircraft that China is developing, while overwhelming the capabilities of Pakistan, India’s other main adversary.

The deal, which Putin and Indian Prime Minister Narendra Modi struck as part of an inter-government agreement in 2016, has run headlong into the U.S. sanctionslaw, two officials in Delhi said.

Indonesia and Vietnam also buy weapons from Russia while being regional partners of the United States. Jakarta closed a $1.14 billion pact for Sukhoi fighters recently, while Vietnam is seeking more jet fighter-bombers from Russia.

And with both Almaz-Antey Air and Space Defense Corporation, which makes the S-400, and Rosoboronexport, which negotiates Russian export deals, listed as under sanction, those deals have become trickier.

“The optics of a major arms purchase from Russia looks quite ‘iffy’ from the point of view of Western capitals, especially at a time when Russia-West relations are at an all-time low and India seeks strategic convergence with the West, including with the U.S.” said Abhijnan Rej, a defence strategy expert at Observer Research Foundation, a New Delhi think tank.

The U.S.-led airstrikes this month against facilities of the Syrian government, an ally of Russia, has further aggravated tensions between the superpowers.

A Russian source close to the Indian S-400 deal said “a lot will depend on the confidence and sanity of our Indian partners.”

WIDER IMPACT

The effects of the U.S. sanctions law could be more sweeping than intended, said Cara Abercrombie, a visiting scholar at the Carnegie Endowment for International Peace.

Vietnam, whose air force flies Russian-made Su-30 fighters and uses the S-300 air defence system, wants to continue modernising its inventory.

Vietnamese military scholar Carl Thayer said he believed Moscow was still pushing Hanoi to invest in state-of-the-art S-400 missile defences as part of its long-term military plans.

“I think it is clear that Russia is still pressing Vietnam for big deals,” Thayer said, noting that the two countries already have had reciprocal visits by defence ministers this year.

But with the United States working hard to promote sales of American military hardware, and sanctions against Russia’s exporting agencies, Vietnam’s plans could prove overly costly.

Indonesia, meanwhile, said the delivery of the first couple of Sukhoi Su-35 jets out of a total of 11 is on track for this year. Officials said that so far they did not anticipate any changes to the deal with the Russians.

Indonesian defence officials declined to describe what, if anything, they might do to tackle the fallout of the sanctions imposed on Russian arms sales.

A THORNY PROBLEM

Indian Foreign Secretary Vijay Gokhale and Defence Secretary Sanjay Mitra held discussions with U.S. officials in Washington last month to try to find a solution, a second Indian official said.

The issue is crucial to the Indian military, because without Russian parts, supplies and maintenance help, “our ships won’t sail, our planes won’t fly,” the official said. “We can hardly be the regional security provider that America wants us to be at this rate.”

One way to avoid secondary sanctions would be if the U.S. determines that India is reducing its dependence on Russian arms, said Atman Trivedi, managing director of Hills & Company, a Washington-based firm that advises on international trade and investment.

Russian hardware represented 62 percent of the country’s total weapons imports during the past five years, compared with 79 percent in 2008-2012, the Stockholm Peace Research Institute said in a report last month.

The U.S. administration could also declare that imposing sanctions on India, a major defence partner, would hurt U.S. national security interests. That would allow a waiver permitting India to do business with Russia.

The United States has emerged as India’s No. 2 weapons supplier, closing $15 billion worth of deals over the last decade. Now Lockheed Martin and Boeing are leading the race to provide India with a fleet of new fighter-bombers, one of the world’s largest open tenders.

“The intent of the legislation was never to disrupt U.S.-India defence relations, which Congress has repeatedly recognised in law as a strategic priority to the U.S.,” said Benjamin Schwartz, aerospace and defence head at United States India Business Council.

Abercrombie of Carnegie added that if Congress grants waivers to India, it may also need to do so for other countries such as Vietnam and Indonesia.

“The bottom line: India warrants an exemption from these secondary sanctions, as does any country with which the U.S. is forging new and strategically important defence relations,” she said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow