Russia demands $700 million more for Admiral Gorshkov

Monday, Feb 23, 2009

India’s efforts to induct Admiral Gorshkov aircraft carrier into its fleet took another hit with Russia seeking an additional US $700 million from India for the repair and refit works it is carrying out in Sevmash Shipyard.

The Russian decision to seek $ 700 million was conveyed to India on February 10 during the bilateral meeting to re-negotiate the Russian demand for additional payment for the 44,500-tonne warship, Defence Ministry officials said today.

The Sevmash Shipyard was also stressing on an immediate release of US $ 190 million for continuing the repair work, which had slowed down due to the fresh price negotiations.

This $ 700 million demand was over and above the additional $ 1.2 billion the Russians were already demanding for the warship bought by India in 2004 for US $ 974 million.

New Delhi was informed by a Russian delegation that the Russian President would agree on a final price of US $ 2.9 billion, the officials said.

The new demand is likely to further upset the Navy’s plans for induction of the ship before 2012, which is a revised delivery schedule for the aircraft carrier originally planned for delivery in 2009.

Source: Hindustan Times