Steeped in the communistic command economy for the better part of the last century, the Russians appear to be still grappling with the nuances of a free market economy— the opportunities it affords and the attendant responsibilities.

Why is it that, of late, practically each and every Indo-Russian defence deal is caught in a quagmire of controversy? Arbitrary price escalation by Russia, as well as unacceptable time overruns in executing projects, have strained the special relationship that bound the two countries for the past half-a-century.

Memories of yesteryears recall the Cold War era, when reeling under the onslaught of the Chinese military actions in the early 1960s and rebuffed by the US due to its non-aligned policy, Delhi had no option but to turn to the erstwhile Soviet Union for weapons, and Moscow readily obliged—not merely by supplying defence equipment at friendship prices but also adhering to a tenacious treaty of strategic friendship. Till now, the ties between the two have stood the test of time, even braving the tumultuous breakup of the USSR after it lost the Cold War to the US. India also absorbed the paradigm shift evident in the newly emerged Russian Federation’s style of conducting defence deals, whereby friendship prices replaced hard bargaining, and soft loans or barters gave way to payments in hard currency.

India did not flinch even when it got caught in an unsavory situation of grave spares shortage, in the aftermath of the disintegration of the Soviet Union. So deeply enduring was the special relationship that India continued to equip its armed forces with Russian equipment. Most notable was the acquisition/licenced-production of as many as 230 Su-30 MKI air dominance fighters for the Indian Air Force (IAF). Even in the now vastly changed global scenario and emergence of the US as a supplier of high-tech arms, India continues to be pretty much dependent on Russia for defence equipment. Just the ongoing deals are worth a staggering $15 billion (Rs 60,000 crore) or more. Besides Gorshkov and associated weaponry, major deals include three new frigates and a 10-year lease of an Akula Class submarine for the Navy, induction of additional 350 T-90s main battle tanks for the army (eventually, with licenced-production in the country, the figure is likely to go up to 1,700) and, for the IAF in addition to the Su-30 MKIs, 80 Mi-17 IV helicopters, upgrade of the existing MiG-29 fleet, plus additional Il-78 flight-refuellers and Il-76 Airborne Warning and Control Systems. As if this were not enough, amidst the ongoing Medium Multi-Role Combat Aircraft (MMRCA) acquisition programme and developing its own Light Combat Aircraft and Medium Combat Aircraft, India also signed a $5-billion (Rs 21,500 crore) deal with Russia to jointly develop and produce the PAK-FA Fifth Generation fighter aircraft.