India has sealed a $ 2 billion agreement to lease a nuclear-powered submarine from Russia, according to people familiar with the matter, bringing an end to nearly a decade of discussions as President Vladimir Putin arrives in New Delhi this week.

Talks on leasing the attack submarine had slowed over the years because both sides were negotiating the price, the people said, requesting not to be named since the talks are private. They said the agreement is now final, and that Indian officials visited a Russian shipyard in November. They added that India expects to receive the submarine within two years, though the complexity of the project means the delivery could take longer.

Putin is expected to reach India on Thursday for his first visit since Russia launched its fullscale invasion of Ukraine. He will meet Prime Minister Narendra Modi to underline the long-standing defence and energy partnership between the two countries.

Modi has made efforts in recent months to strengthen ties with Russia and China, saying that India will follow its own strategic path after US President Donald Trump imposed a punitive tariff of 50 per cent on Indian goods. Modi’s government is now working on a trade deal to reduce those duties, which were introduced as part of Trump’s pressure on India to stop buying Russian oil while he seeks leverage over Putin to end the war in Ukraine.

Before Putin’s arrival, India’s Chief of Naval Staff Dinesh K. Tripathi told reporters that the commissioning of the attack submarine would be expected soon, though he did not share more details. The submarine would be larger than the two already serving in the navy.

India’s Ministry of External Affairs and Ministry of Defence did not respond to emails seeking more information. Russia’s Foreign Ministry, Ministry of Defence and Rosoboronexport also did not reply to requests for comment.

India has developed nuclear-capable submarine-launched ballistic missiles, which in theory give it the complete set of atomic weapons that can be delivered from land, sea and air, according to the Nuclear Threat Initiative.

Nuclear-powered submarines are far more capable than diesel-electric ones. They are usually larger, can stay underwater for much longer periods and make very little noise, which makes them harder to detect across the vast stretches of the Indian and Pacific oceans. India currently operates 17 diesel-powered submarines, NTI said.

India’s nuclear-powered submarines used for strategic deterrence are made in the country and designed to carry these missiles. India is also preparing to build its own nuclear-powered attack submarines, which are meant to track and destroy enemy ships and submarines.

Under the lease terms, the Russian attack submarine cannot be used in war. The people said the submarine will mainly help India train sailors and improve nuclear submarine operations as the country builds its own fleet.

The Russian submarine will stay with the Indian Navy for 10 years. The previous Russian submarine, which was also leased for 10 years, was returned in 2021, the people said. They added that the new contract will include maintenance.

As the Indian Ocean region becomes more important, interest in nuclear-powered submarines has grown. Australia is working with the United States and the United Kingdom to build similar submarines under the AUKUS security partnership. So far, only a few countries, including the United States, the United Kingdom, France, China and Russia, have the technology to operate nuclear-powered submarines.

South Korea is also working with the United States to build such submarines.

India continues to keep its strong ties with Moscow while also building deeper relations with the United States. It has reduced its dependence on Russian weapons by buying more defence equipment from the United States and European countries.

Even with this shift, Modi’s decision to rely on Russia for nuclear submarines shows that India is comfortable working with Moscow on major defence projects despite Trump’s criticism.

“They have bought the vast majority of their military equipment from Russia and are Russia’s largest buyer of energy with China,” Trump said in a Truth Social post in July. The United States has urged India to stop buying Russian oil and has announced a 25 per cent “secondary tariff” on US imports of Indian goods starting late August.

India’s third ballistic missile submarine is expected to join the nuclear forces next year, Tripathi said. India is also building two nuclear-powered attack submarines, Bloomberg News reported.