Russia Begins Production of India's S-400 Systems

Following India's advance payment of around $800 million, Russia has launched production of S-400 missile defense systems for the country.

"The advance payment has been made. I don’t want to specify an exact figure, but there is an advance payment. We have launched production and the work is underway, and everything will be implemented as scheduled. The contract will be fulfilled by 2025," Sergei Chemezov, CEO of Rostec, told during the ongoing Dubai Airshow 2019.

New Delhi and Moscow had signed a deal worth an estimated $5.4 billion for five S-400 systems during the annual summit of leaders of the two countries in October 2018.

According to India's Hindustan Times, the advance payment made amounts to $850 million, or about 15% of the total deal. It was made in September though a special mechanism worked out by the two sides to avert attracting sanctions under the Countering America’s Adversaries Through Sanctions Act (CAATSA) of the US.

Delivery of the first S-400 air defense system to India is expected to take place in 16 to 18 months from now.