'No new deal signed between India and Russia': Govt clarifies on $2 bn Russia submarine deal

The Centre on Thursday clarified that India hasn't signed any nuclear-powered submarine deal worth $2 billion with Russia. Earlier in the day, Bloomberg News reported that India has finalised a $2 billion pact to lease a nuclear-powered attack submarine from Russia, timed with President Vladimir Putin’s visit to New Delhi this week. The long-pending deal, more than a decade in the making, highlights the deepening defence and energy partnership between the two nations.

The government has clarified that no fresh agreement has been signed between India and Russia; the submarine lease stems from an existing contract inked in March 2019. Its delivery was delayed, and the revised timeline now places handover in 2028.

Press Information Bureau in a post on X wrote: "The headline of an article by @Bloomberg claims that 'India Clinches $2 Billion Russia Submarine Deal as Putin Visits.' The claim made in this headline is misleading! No new deal has been signed between India and Russia. The submarine lease is based on an old contract that was signed in March 2019. There has been a delay in the delivery, and the new delivery is scheduled for 2028."

Putin's visit to India

President Vladimir Putin will arrive in India on Thursday for his first visit since the Ukraine war, meeting PM Modi to reinforce defence and energy ties.

President Vladimir Putin’s first visit to India since 2021 is expected to place economic cooperation at the centre of the agenda, with both sides preparing a substantial package of agreements. Reports indicate that India and Russia are working toward finalising around 10 inter-governmental pacts and 15 commercial deals, signalling a renewed seriousness in expanding their partnership beyond its traditional defence focus.

Trade will dominate the conversations. Bilateral trade surged 12% in 2024 to reach $63.6 billion, largely driven by India’s purchase of discounted Russian oil. Moscow has proposed a long-term programme outlining strategic economic cooperation until 2030, reflecting its desire to anchor the relationship in more durable commercial sectors. At the same time, New Delhi is seeking to reduce its heavy dependence on energy imports from Russia, especially as Indian refiners limit purchases to avoid complications from U.S. sanctions. The summit is expected to explore trade diversification, with both sides identifying opportunities in manufacturing, agriculture, shipping, technology, and services.

Energy cooperation will still be crucial. The Kremlin has stressed that it is working to ensure Russian oil reaches global buyers despite sanctions, underscoring the importance Moscow places on Indian demand. Discussions are also likely on restoring ONGC Videsh Ltd’s 20% stake in the Sakhalin-1 project, a step aligned with India’s long-term energy security interests. Both sides recently agreed to begin negotiations on a free trade agreement between India and the Eurasian Economic Union, a move that could reshape regional trade pathways.

Defence ties remain a central pillar of the relationship. India’s plan to procure five additional S-400 Triumf air-defence squadrons is expected to feature prominently, along with Russia’s proposal to set up a major maintenance and overhaul facility in India. There may also be exploratory discussions on the more advanced S-500 system and potential evaluations of the Sukhoi-57 fifth-generation fighter as an alternative to Western platforms. While New Delhi has not taken a position on acquiring Su-57 squadrons, the option of future co-production continues to be part of the dialogue.

Overall, the visit aims to broaden India–Russia cooperation at a time of shifting geopolitical pressures, with both sides looking to build a more balanced and future-oriented partnership.