How India and Russia are trying to break the U.S. sanctions, the secret Putin – Modi deal to bypass the dollar

The recent summit between Vladimir Putin and Narendra Modi in New Delhi revealed a background far more complex than the standard statements of cooperation.
Behind closed doors, Moscow and New Delhi are seeking a new economic pathway that will allow them to break the American sanctions and completely bypass the dollar in their mutual transactions.
The ambitious plan concerns energy agreements, exports of high technology, and even flows of labor, shaping a model of trade that will operate independently of the Western financial system.
A deal that, if implemented, could upset balances not only in the Asian continent but also in the global geoeconomy.
More specifically, the visit of Vladimir Putin to India and the 23rd India–Russia summit (New Delhi, 4–5 December) generated expectations for major military agreements, from the supply of stealth fighters Su-57 and the provision of additional S-400 regiments to the potential leasing of the Russian submarine Project 971 (Shchuka-B / Akula-1 class).
Nevertheless, the joint communiqué contained no such agreement, and many analysts were left stunned.
As reported by The EurAsian Times, the main reason for the pause in major deals is practical and monetary.
Because of U.S. sanctions, dollar-denominated transactions with Russia are problematic, and Moscow now prefers non-dollar payments.
India proposed paying in Indian rupees, but the critical question is: what will Russia do with the rupees?
At the moment, India does not have enough rubles to finance massive orders of Su-57 or S-400, while Indian exports to Russia are insufficient to absorb rupees through the balance of trade.
In other words, without a substantial increase in Indian exports to Moscow (food, high-tech industrial products, services and labor), trade in rupees remains unprofitable for Russia.
However, “more grounded” issues were also on the summit table: bypassing U.S. sanctions via the supply of Russian oil to Indian refineries, attracting labor (Moscow is interested in bringing Indian workers into Russian businesses), and expanding bilateral trade.
The leaders sought to create a “sanctions-resistant” base of cooperation, a priority that, for the moment, overshadowed immediate military agreements.

Su-57, S-400, BrahMos-NG

Moscow has in the past offered India the Su-57, including a proposal for technology transfer and local production.
However, the Indian Air Force is interested in the two-seat version Su-57D, which is expected to conduct test flights in early 2026, and it demands guarantees that the aircraft will be able to carry the new BrahMos-NG system.
Given the delay in the development of BrahMos-NG, India does not want to rush.
The last two S-400 batteries ordered in 2018 have not yet been paid for, and their delivery is pending.
Until payments and technical requirements are settled, new S-400 or S-500 packages will not be finalized.
The leasing proposal for the Project 971 (Akula-1) submarine was discussed as a possible rapid solution to enhance naval capabilities, but it requires monetary and financial arrangements.
The conclusion is therefore clear: India could buy weapons and technology only if there is a reliable form of bilateral payment.
The two sides have set a goal to increase bilateral trade from around 60 billion dollars to 100 billion dollars by 2030, and Narendra Modi stated that this could be achieved earlier.
But this increase requires an expansion of Indian exports to Russia (food, industrial goods, services, labor) in order to create real demand for rupees or to establish alternative exchange mechanisms (currency agreements, swap lines, use of third currencies, or trade offsets).

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