TEHRAN _ Taking their defense partnership to the next level, India and Russia have signed a $500 million deal for construction of two warships for the Indian Navy under the technology transfer model, media reports quoted Indian officials saying on Tuesday.

The agreement for the project was signed between India's Goa Shipyard Ltd (GSL) and Russia’s state-run defense major Rosoboronexport under the government-to-government framework for defense cooperation.
Under the deal, Russia will provide design, technology and some materials to GSL for construction of ships in India.
“We have finalized a $500 million deal with Russia for construction of two warships in Goa,” CMD of GSL Shekhar Mital was quoted saying by India's state-run news agency PTI.
He said construction of the ships will begin in 2020 and the first one will be ready for induction in 2026 while second one will be ready by 2027, report said.
India is going ahead with mega defense deals with Russia in utter disregard of warnings by the U.S. of sanctions. The Trump administration has put several Russian firms under sanctions as part of Countering America's Adversaries Through Sanctions Act (CAATSA).
The two countries finalized a lucrative defense deal during Russian President Vladmir Putin’s visit to India last month. Russia has traditionally been India's most preferred defense partner and India has maintained that its relationship with Moscow would not be affected by U.S. sanctions and the rapidly changing regional dynamics.