State Contract for Borey-Class Submarines Faces Delays

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RIA Novosti, PUBLISHED April 14, 2012

A contract to build Borey class submarines, the most costly of the 2012 state defense orders, faces delays over pricing, the Kommersant daily said on Saturday citing shipbuilding and defense sources.

“The defense ministry is again dissatisfied with the price substantiation, so the signing of the contract is ruled out in the near future,” a source in the shipbuilding industry told Kommersant.

According to the paper, Russia's United Shipbuilding Corporation (USC) said one submarine will cost about 26 billion rubles ($878,000), or about 130 billion rubles ($4.4 billion) in total.

A defense ministry source said “the manufacturers still want to sell it at an unjustifiably high price,” while shipbuilders say such prices would barely allow them to make any profit.

In line with the revised state armament procurement program, the Russian Navy is to receive at least 10 new Borey class strategic nuclear submarines until 2020.

Topics: Russia

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