Why in news
Prime Minister Narendra Modi’s visit to Ukraine on Friday, the first by an Indian Prime Minister, will focus on cooperation in defence
India Ukraine relations
The war in Ukraine, starting in February 2022, initially disrupted supplies and spares for the Indian military, which relies on equipment from both Russia and Ukraine.
India sought to diversify its sources by turning to domestic manufacturers and finding alternate suppliers from countries like Poland, Estonia, and Bulgaria.
Current Situation: The situation has improved with supplies and spares starting to come through, though not yet at pre-war levels
Ukraine has shown interest in forming joint ventures with Indian companies, leveraging its advanced and battle-tested technologies.
Defense Sector Impact
Army: India’s Army faced challenges with rising prices and delays for air defense, armor, and artillery.
It shifted to domestic vendors for smaller components.
Navy: Over 30 Indian warships use engines from Ukraine.
The Navy is working on local servicing solutions and partnering with Indian companies for maintenance.
Air Force: The IAF experienced delays in upgrading its AN-32 transport aircraft due to the war’s impact on Ukraine.
Defense Trade
Past Agreements: Defense trade between India and Ukraine continued up to early 2022.
Agreements included weapon sales and maintenance deals, such as the $70 million contracts signed at Aero India 2021.
Financial Transactions
Payments were complicated by Russia's exclusion from the global SWIFT system and challenges with the rupee-rouble trade.
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