HomeNewsIndiaIndia clinches $2 billion Russia submarine deal as Putin visits

India clinches $2 billion Russia submarine deal as Putin visits

Talks for leasing the attack submarine from Russia had stalled over the years because of price negotiations

December 04, 2025 / 14:00 IST
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Putin is set to arrive in India on Thursday for his first visit to the country since Russia’s full-scale invasion of Ukraine.
Putin is set to arrive in India on Thursday for his first visit to the country since Russia’s full-scale invasion of Ukraine.

India will pay about $2 billion to lease a nuclear-powered submarine from Russia, according to people familiar with the matter, finalizing delivery of the vessel after roughly a decade of talks just as President Vladimir Putin makes a visit to New Delhi this week.

Talks for leasing the attack submarine from Russia had stalled over the years because of price negotiations, the people said, asking not to be identified because the discussions are private. The two sides have now agreed on the deal, with Indian officials visiting a Russian shipyard in November, they said. India expects to take delivery of the vessel within two years, although the complexity of the project means it could be later, they said.

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Putin is set to arrive in India on Thursday for his first visit to the country since Russia’s full-scale invasion of Ukraine. He’ll meet Prime Minister Narendra Modi to underscore defense and energy ties between the two countries.

Modi has moved to boost ties with Russia and China in recent months, asserting India’s strategic autonomy after US President Donald Trump hit the nation’s goods with punitive tariff rates of 50%. Modi’s government is currently negotiating a trade deal to reduce those duties, which were imposed as part of Trump’s push to pressure India to stop buying Russian oil as he looks for leverage on Putin to end the fighting in Ukraine.