The Kremlin said before the two-day visit that the "key feature" would be the signing of a $5-billion deal for the advanced S-400 air defence system, despite USA sanctions against countries buying Russian defence hardware.
The two are slated to discuss a number of key regional and global topics, including the United States sanctions on Iran oil.
"Next on the itinerary is the signing of bilateral documents, and there are many of them in the portfolio", he said.
Sources told ET that the $5.2-billion deal for five regiments of S-400 air-defence shield has received top-level clearances and would be signed at the Modi-Putin summit.
India is expected to receive the first S-400 regiment two years after the signing date of the contract. As of October 1, however, the Indian government has not publicly confirmed that the CCS approved the $5.5 billion acquisition.
"We urge all of our allies and partners to forgo transactions with Russian Federation that would trigger sanctions under CAATSA", a State Department spokesperson said on Wednesday when asked about India's plan to purchase multi-billion S-400 missile defence system from Russian Federation.
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But ties received a boost previous year when Modi and Putin held a fruitful annual bilateral summit, followed by meetings in Astana and at the G20 in Germany.
The US administration is required under a domestic law, Countering America's Adversaries through Sanctions Act or CAATSA to impose sanctions on any country that has "significant transactions" with Iran, North Korea or Russian Federation. The central theme of their conversations with Indian colleagues was precisely the intention of India to buy Russian air defense systems. "If the US decides to go ahead with its domestic legislation and invoke penalties/sanctions against Delhi, it would test the resilience of the India-US bi-lateral", he said.
There is a risk that oil prices could hit $100 a barrel soon because a lot of uncertainties now exist in a very nervous and emotional market, Russia's Energy Minister Alexander Novak told Russian radio station Business FM in an interview on Thursday.
Russian Federation says it remains determined to continue cooperating with Iran even if new U.S. sanctions are slapped against the country.
On Friday, the two leaders are expected to have restricted conversation again, with a handful of aides, where they are likely to discuss nuclear, defence and security issues.
"We are in a new situation", says Nandan Unnikrishnan, a Russian Federation expert at the independent Observer Research Foundation in New Delhi. "Both leaders are looking at a long-term, sustained relationship and how to make progress", a source said, signalling that India will not come under pressure from the global community on cutting ties with Russian Federation.