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BRICS outcome for Russian Federation

zindapak

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The fact that Russia and India, in the person of President Putin and Prime Minister Modi signed two landmark agreements concerning defense industry during BRICS summit, which was very rapidly spread in Russian media. One of these agreements involves the creation of a joint venture with «Russian Helicopters» and India's HAL Corporation for the production of Ka-226T helicopters.

On the 20th of October The EU Summit took place, during which German Chancellor Angela Merkel raised the question of the tightening the European Union sanctions against Russia.

French engines Arrius 2G1 manufactured by «Turbomeca» are supplied for the helicopters Ka-226T and if new sanctions will take place, and it will be for sure after carnage of Aerospace forces of the Russian Federation in Aleppo, the agreement for the construction of 200 units, and even more helicopters would be questioned. In general, the production of helicopters with imported components, without import substitution, will be impossible.

The fact is that Putin during his visit to Goa also held negotiated with Indian Prime Minister Modi on supply of 5qty S-400 SAMs «Triumph» worth 6 billion US dollars and creation of joint enterprise with «Russian Helicopters» and India's HAL Corporation, to produce not less than 200 helicopters Ka-226T. It would seem that everything is wonderful and fine, the money drips, however ...

Pakistan will not rejoice to this circumstance, S-400 SAM is like a bone across the throat. Definitely, such an agreement will irritate as well China, who also acquired S-400 systems from Russia for 3 billion US dollars, but only 6 pieces and did not expect to see similar air defense systems near its borders. Well, we should also to keep in mind Iran which looking at such sales already, stated that the Russian S-300 systems are better than their own development, and... if Russia wants to be friends – the have to sell «Triumph» systems.

Of course, the joint enterprise can bypass those sanctions, but the «Russian Helicopters» profit will be significantly lower than estimated, and much depends on the form of sanctions, which can not only limit the interaction of Russian companies with foreign partners, but also, in principle, to put an end to the concluded agreements.

As a result, the effect for Russia from the last Congress of the BRICS goes quite controversial, as well as from the existence of the Union. As a PR and visibility of dialogue with international partners – of course, the dust thrown in the eyes. But no more than that...
 
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