Russian shipyards and Defense Ministry agree on sub prices

Aleksander Nevsky at Sevmash (Photo:

The Russian Defense Ministry and United Shipbuilding Corporation have agreed on prices for two classes of nuclear submarines.


As BarentsObserver reported, the giant shipbuilding corporation that includes Sevmash and Zvezdochka shipyards in Severodvinsk, have had a long-going fight with the ministry over the bills for construction of Russia’s new Yasen and Borey class submarines as well as other contracts.

Yesterday afternoon the two parties reached a compromise on the prices and agreed on conditions for future contracts. According to the agreement, future contracts between the United Shipbuilding Corporation (USC) and the Russian Defense Ministry will be signed on the condition that the shipbuilder chooses its own subcontractors. Subcontractors have earlier been chosen by the ministry, RIA Novosti reports.

It is not known what the total sum of the contracts is, but the original budget offered by the ministry was “tens of billions of rubles” lower than the demand of the USC. The contracts on state orders for 2011 are expected to be signed in the nearest future.

The state orders for 2011 includes one multi-role Graney-class nuclear powered submarine – “Severodvinsk”, and two strategic Borey-class nuclear powered submarines – “Yury Dolgoruky” and “Aleksander Nevsky”.

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