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President Vladimir Putin holds meeting with Government members

When asked, a government source rejected the USA statement, saying that the S-400 missile system deal was taken in the "national interest".

"Negotiation on S-400 air defence systems has been on for a long while and it is at a stage where it can be finalised", Sitharaman said last week.

The two leaders reserved most of their time during Mr. Putin's brief 22 hour visit for one-on-one interactions, spending three hours at dinner on Thursday and almost two hours on Friday in intense talks on a wide range of bilateral and global issues.

Neither Modi nor Putin mentioned the deal in their statements to the media. The two leaders also agreed to start Ganga-Volga Dialogue to rebuild the bond between the two peoples. "Our recent action to sanction a Chinese government entity for an S-400 delivery underscores the seriousness of our resolve on this issue".

That spokesperson declined to say definitively whether or not the USA would consider punishing India for the purchase.

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India has been negotiating the missile deal with Russian Federation for three years now.

"India gives top priority to its relations with Russian Federation".

The deal was signed in New Delhi after talks between Russian President Vladimir Putin and Prime Minister Narendra Modi. A crucial MoU was signed between the Indian Space Research Organization (ISRO) and the Federal Space Agency of Russia "ROSCOSMOS" on joint activities in the field of the human spaceflight programme Gaganyaan. An Indian monitoring station will be built near the Russian city of Novosibirsk in Siberia, reported ANI.

Around 20 agreements are expected to be signed between the two sides following the summit on Friday.

The pact was signed during talks between Indian Prime Minister Narendra Modi and visiting Russian President Vladimir Putin here. Relations between India and Russian Federation had taken a backseat.

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But Andrey Slepnev, Director of Russia Export Center, struck a positive not and dismissed United States actions as "illegal" and reaffirmed the need for continuity in bilateral cooperation between India and Russia. He added that the two would continue cooperation at worldwide groups such as the Shanghai Cooperation Organisation, BRICS, G-20 and the Association of South East Asian Nations. USA defence contactors such as Lockheed Martin, Boeing and Sirkorsky who supply critical equipment to India the C-17, C-130 J transport aircraft, Apache and Chinook helicopters, will come under sanctions in the absence of a waiver.

"The decisions taken today will further enhance our cooperation and contribute to the restoration of peace and stability in this challenging world", Modi said at a joint press event with Putin. The United States is one of its top arms suppliers, closing $15 billion worth of deals in just the last decade.

Welcoming Indian firms to invest in Russia, Putin said the two nations share longstanding ties. He also invited Modi to Vladivostok as the main guest of the Economic Forum in September 2019. Mr Putin is India on a two-day visit; he arrived in the national capital on Thursday.

India signed an agreement for the purchase of S-400 air defense systems from Russia, Kremlin spokesman Dmitry Peskov said Friday. The US wants to bring India, Japan and Australia together in response to China's increasingly assertive stance in the Indo-Pacific region.

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