
The deal is expected to be announced this week when Russian President Vladimir Putin visits India for two days.
The deal would see India purchase the S-400 missile defence system from Russia for nearly £4billion.
However, India risks getting slapped with severe sanctions by its ally the US if the deal goes through.
Under US law, the President is required to impose sanctions on any country that has “significant transactions” with Iran, North Korea or Russia.
President Donald Trump has the authority to waive these sanctions if he sees fit, but US officials have repeatedly stated that India should not count on Trump doing this.

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A State Department spokesman said: “We urge all of our allies and partners to forgo transactions with Russia that would trigger sanctions under CAATSA.
“The Administration has indicated that a focus area for the implementation of CAATSA Section 231 is new or qualitative upgrades in capability – including the S-400 air and missile defence system.
“There are strict criteria for considering a waiver.
“The waiver is narrow, intended to wean countries off Russian equipment and allow for things such as spare parts for previously-purchased equipment.”
Despite the US’s threats of sanctions, India is claiming the Trump administration has full knowledge of the transaction.
One Indian official said Trump should not be surprised about the deal since India “has been clear about its intentions regarding the S-400 deal”.
Neil Bjorkman, Vice-President of Legislative Affairs at the US-India Strategic Partnership Forum (USISPF), said: “The US government does not want India to buy the S-400 from Russia but we predict that the Trump Administration will ultimately allow the go-ahead with the purchase without sanctioning India.
“US Secretary of Defence Mattis spent a lot of political capital for India and the waiver authority was approved by the lead Republicans and Democrats on the Armed Services Committees.
“Is it a blank cheque for India? No.
“But was the law designed to allow India to receive the waiver? Absolutely.”