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New Delhi, December 4, 2025 — A major defense agreement concerning the lease of a nuclear-powered attack submarine from Russia has come under the spotlight during President Vladimir Putin’s visit to New Delhi, although the Indian government has clarified the deal is an affirmation of an existing contract, not a new one.
Initial reports from international media suggested India had “clinched” a fresh $2 billion deal for the lease of the submarine, timed to coincide with President Putin’s visit. However, the government’s Press Information Bureau (PIB) issued an immediate clarification, labeling the claim of a new deal as “misleading.”
Key Clarifications and Details
No New Deal: The government stated unequivocally that no new agreement has been signed.
Existing Contract: The submarine lease in question is based on a contract signed in March 2019.
Delayed Delivery: Delivery of the vessel had been delayed, and the revised timeline for its handover to the Indian Navy is now 2028.
The arrangement, valued at approximately $2 billion, is for a ten-year lease of an Akula-class nuclear-powered attack submarine, a platform expected to be larger than existing vessels in the Indian Navy’s fleet.
Strategic Importance of the Lease
The long-pending arrangement, which saw intermittent talks over pricing for nearly a decade before the terms were reportedly settled, underscores the enduring defense and energy partnership between the two nations.
“The submarine lease is primarily focused on training Indian sailors and helping them refine nuclear-boat operations as India expands its work on indigenous nuclear-powered submarines,” sources familiar with the terms indicated.
Crucially, the lease terms strictly specify that the Russian-leased submarine cannot be used in active combat and is dedicated solely to training and operational experience. India previously leased a Russian nuclear submarine, which was returned in 2021 after its contract concluded.
Putin-Modi Summit
President Putin arrived in New Delhi today for a bilateral visit, where he is scheduled to hold talks with Prime Minister Narendra Modi. While the submarine lease details have drawn attention, the leaders are expected to discuss a broad range of issues, including:
Deepening Defense and Energy Ties
Regional and Global Issues
Efforts to achieve a shared goal of $100 billion in trade turnover by 2030
The commitment to finalize the long-delayed delivery schedule during this high-profile visit signals a renewed push to strengthen strategic military-technical cooperation, despite mounting geopolitical pressures.
