Friday, October 5, 2018

As Was Expected.

India and Russia on Friday formally sealed the USD 5 billion S-400 air defence system deal and signed eight pacts at the annual bilateral summit in New Delhi even as the US gave a guarded response over the development. The signing of defence deal between India and Russia may invite US sanctions. However, in a guarded statement, the US embassy in New Delhi said that its intent to slap sanctions against Russia was not aimed at imposing damage to the military capabilities of its “allies or partners”, PTI reported.  The US reaction came shortly after India concluded a deal for purchase of S-400 missile defence system from Russia. After wide-ranging talks, Prime Minister Narendra Modi and Russian President Vladimir Putin on Friday signed the defence deal despite the US warning. Both the sides also talked about taking “decisive” action without “double standards” to tackle the menace of terrorism. 

The actual number (sum) of S-400 contract is quite a bit more (in Russian) but no matter--one way or another, the Russian Air Defense complex with the moniker "Triumph" is definitely triumphant both as a weapon system and as a hi tech commercial item. Of course, expect now all kinds of media military "experts" pretend that they know what it all means and how this means nothing but the truth is simple: Russia gets to keep her clients and she gets them all over Eurasia. Eight other major agreements, ranging from shipbuilding to space, have been signed between Russia and India and, something tells me (wink, wink) that the project for India's fifth generation fighter is far from dead. And, of course (rumors are already in the air) T-14 Armata is supposed to be also on a shopping list...somewhere. All in all, productive summit and, I am sure, new sanctions will follow if not now, then later. It is all about business, folks. 

Now, one is forced to ask a question--what future holds for arms trade. I already know at least partial answer to this. Russians when promising to become number one in arms sales are not bluffing, nor US is slapping sanctions on Russia left and right non-stop just because US elites are viscerally Russo-phobic, which they are, but that is not the only factor. The competition in real hi-tech markets--aerospace, weapons, energy extraction, just to name a few--is heating up. And while Wall Street is busy pretending that Walgreen's or Amazon really matter, the actual and reliable indicator of economic development is good ol' military and actual capabilities it generates. This explains well why the US slapped recently sanctions on Russian companies which are involved in MC-21 manufacturing, such as AeroComposite. US will try to sabotage MC-21 getting anywhere near international market, especially with PD-14 engine. One of the ways to do so is to slap the breaks on, as one of the desperate measures, sale of MC-21 with Honeywell avionics. Sure. The problem, of course, in this approach (for Honeywell) is that the nation (Russia) which produces 100% domestic avionics for SU-35C or SU-57, which makes any commercial aircraft avionics look tame compared to military one, will have no (in fact it is NOT having) problems with fully domestic substitutes which are already available for MC-21. So, who loses? The answer is self-evident. But about this later.  

Meanwhile Russian evilness and monstrosity have no limits, now Russians are guilty of creating a deficit of.... chocolate. The depth of Russian depravity is literally--limitless.        

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