India to receive new nuclear submarine under $2 billion deal with Moscow

India is set to pay roughly $2 billion to lease a nuclear-powered submarine from Russia, according to individuals familiar with the negotiations, quoted by Bloomberg. This move effectively finalises the vessel’s delivery after nearly ten years of discussions, coinciding with President Vladimir Putin’s visit to New Delhi this week.

The talks on leasing the attack submarine had repeatedly stalled due to disagreements over pricing, the people said, speaking on condition of anonymity because the discussions were not public. They added that the two sides have now reached an agreement, with Indian officials having visited a Russian shipyard in November. India anticipates receiving the submarine within two years, although the complexity of the project means the timeline could extend further.

Putin is scheduled to arrive in India today, December 4, marking his first trip to the country since Russia launched its full-scale invasion of Ukraine. During the visit, he is expected to meet Prime Minister Narendra Modi and reaffirm the strong defence and energy cooperation between the two nations.

In recent months, Modi has sought to strengthen relations with both Russia and China, asserting India’s strategic independence after US President Donald Trump imposed 50% punitive tariffs on Indian goods.

Modi’s government is now engaged in negotiations for a trade agreement that would lower those tariffs, which were introduced as part of Trump’s effort to pressure India into halting its purchases of Russian oil while he seeks additional leverage over Putin to end the war in Ukraine.

Ahead of Putin’s arrival, India’s Chief of Naval Staff Dinesh K. Tripathi told reporters that the commissioning of the attack submarine is expected soon, though he did not reveal further details. He noted that the submarine would be larger than the two already in service with the Indian Navy.

By Tamilla Hasanova