the Indians have nothing if very little to do with Su-35 pipeline, sale proposals and negotiations have been revolving around Mig-29k and Mig-35 for the last few years, with Sukhoi they are going to have their MKI upgrade with Su-35 tech and that deal is still pretty much in place
the most possible explanation is China is seeking to buy engines from Saturn as a hedge against WS-15 coming late, but the Russians are tying the deal with Su-35 planes, such news surfacing probably means the deal fell through (various possibilities Russia refuses to sell engine, China refuses to buy plane, etc etc) but we never know, it might happen as well