India on Friday inked a $5.43 billion (Rs 40,000 crore) deal to purchase 5 advanced S-400 Triumf surface-to-air squadrons from Russia, despite the looming threat of US financial sanctions, The Times of India reported.

India and Russia signed the missile deal after annual summit talks between Indian Prime Minister Narendra Modi and Russian President Vladimir Putin in Delhi.

Following this deal, Rostec CEO Sergey Chemezov said: “The S-400 supply agreement with India is a new landmark in the history of military-technical cooperation between our countries. The deal demonstrates the highest level of trust and understanding between India and Russia. I am sure that this agreement will also be a new impulse for strengthening and deepening our cooperation in civil industry.”

Meanwhile, Russia and India will continue carrying out joint military drills, according to a joint statement by Russian President and Indian Prime Minister made after their talks and posted on the Kremlin website on Friday.

The leaders of both countries called military and military-technical cooperation between Moscow and New Delhi an important element of strategic partnership.

“The Sides noted that Military and Military-Technical cooperation between the two countries is an important pillar of their strategic partnership. They welcomed the forthcoming meeting of the Indian-Russian Intergovernmental Commission on Military-Technical cooperation to be held in December 2018,” the statement reads.

The Russian side positively evaluated the Indian participation in the Army Games 2018, the Army 2018 and the Moscow Conference on International Security.

“Both Sides commended the successful completion of the first ever Tri-Services Exercise INDRA 2017 and committed to continue their Joint Military Exercises - INDRA Navy, INDRA Army and Avia INDRA - in 2018,” the statement said.