India and Russia push ahead with $1.74B high-speed train deal despite sanctions
India and Russia are moving forward with a major rail project despite international sanctions. A consortium led by Russia’s Transmashholding and India’s Rail Vikas Nigam won a $1.74 billion contract in 2023 to supply 120 high-speed electric trains. Work on the first 16-car prototype is now underway in Maharashtra, with a planned reveal in mid-2026. The deal was finalised after the consortium submitted the lowest bid of $14.5 million per train. Under the agreement, production must take place at Indian Railways’ factories in Latur and Chennai. Assembly of the first 16-car train has already begun at the Marathwada Rail Coach Factory in Latur.
The trains, based on India’s Vande Bharat design, will carry 1,128 passengers each and reach speeds of 160 km/h. The Russian-Indian partnership is also responsible for upgrading the original platform for mass production. Beyond manufacturing, the consortium will handle long-term maintenance and modernise depots over 35 years. The contract marks Transmashholding’s largest foreign deal to date. It comes after the U.S. Treasury imposed blocking sanctions on the Russian firm in September 2023. Despite this, India has maintained its collaboration with the company.
A full-scale prototype is set to debut in June 2026. The project will boost India’s domestic rail production while ensuring decades of maintenance support. The $1.74 billion investment remains the biggest foreign contract for Transmashholding so far.
