India Finalizes $2 Billion Deal to Lease Advanced Russian Nuclear Attack Submarine

New Delhi is set to pay approximately $2 billion to lease a nuclear-powered attack submarine from Russia, marking the successful conclusion of nearly a decade of negotiations, according to sources familiar with the agreement.

The deal, which had repeatedly stalled over pricing disputes, was finalised after Indian officials inspected the vessel at a Russian shipyard last month. Delivery is expected within the next two years, though technical complexities could delay the handover.

The agreement comes just ahead of Russian President Vladimir Putin’s visit to India on Thursday—his first since the full-scale invasion of Ukraine in 2022—where he will meet Prime Minister Narendra Modi to reinforce bilateral defence and energy cooperation.

The leased submarine, which will be larger than the two nuclear-powered boats currently in India’s fleet, will be operated under strict conditions: it cannot be deployed in combat and is intended primarily for training Indian crews and enhancing operational expertise with nuclear propulsion technology. The 10-year lease includes full maintenance support from Russia. India previously operated another Russian-leased nuclear submarine (INS Chakra II) for a decade until its return in 2021.

Speaking to reporters this week, Indian Navy Chief Admiral Dinesh K Tripathi confirmed that the commissioning of a new attack submarine is imminent, without elaborating on the Russian origin.

Nuclear-powered attack submarines offer significant advantages over conventional diesel-electric boats, including greater size, near-unlimited underwater endurance, higher speeds, and reduced acoustic signatures—making them far harder to detect across the vast Indo-Pacific region.

The move underscores India’s continued strategic comfort with Russia on sensitive military platforms, even as New Delhi diversifies its defence acquisitions toward the United States and Europe and deepens ties with Washington. The decision comes amid U.S. pressure on India to curb Russian oil purchases, including punitive tariffs imposed by President Donald Trump—currently up to 50% on certain Indian exports—as leverage to isolate Moscow economically.

Despite the tensions, India is simultaneously advancing its indigenous nuclear-submarine program. A third domestically built ballistic missile submarine (SSBN) is slated to enter service next year, while construction of two Indian-designed nuclear-powered attack submarines (SSNs) is already underway.

With only a handful of nations—the United States, United Kingdom, France, Russia, and China—currently operating nuclear-powered submarines, the technology remains a closely guarded strategic asset. Recent developments such as the AUKUS pact (providing Australia with nuclear submarines) and South Korea’s collaboration with the U.S. highlight growing global interest in the capability.

Neither India’s Ministry of External Affairs nor its Ministry of Defence nor their Russian counterparts responded to requests for comment on the lease agreement.

Also Read: Congress neglected Northeast, portrayed it as troubled region: Sonowal slams opposition