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Rosoboronexport deputy general director Ivan Goncharenko
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Nov. 28, 2007
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Indian Frigate Still in Shipyard
The second of three Project 1135.6 frigates for the Indian Navy has been laid down at the Yantar plant in Kaliningrad. There are problems with the first ship, however, that the contractor, Rosoboronexport, would rather share with the Russian Federal Agency for Industry (Rosprom). Construction was begun on the first ship on July 27 and the two blocks of its hull have been assembled. The $1.6-billion contract for the three frigates was signed in July 2006 for delivery in 2010-2011.
Rosoboronexport deputy general director Ivan Goncharenko sent a letter to Rosprom head Andrey Dutov at the end of last month suggesting that an interagency coordinating council be set up to handle the problems with the construction of the three Indian ships. Goncharenko mention delays in payments and the absence of contracts with the weapons suppliers, Arsenal heavy equipment plant and OAO AK Tulamashzavod, due to differences over prices. Goncharenko suggested that representatives of Rosprom and the Ministries of Defense, Justice and Finance sit on the coordinating council. This was the third time his agency had suggested that a council be formed.

Rosprom has suggested in the autumn of 2005 that Northern Wharf be selected for the construction of the frigates for the Indian Navy, rather than Yantar, 51 percent of which belongs to the state and 32 percent of which belongs to affiliates of the Interregional Investment Bank. The decision in favor of Yantar was made by the Federal Military Technical Cooperation Service, which cited Russian president Vladimir Putin's instructions to support that plant. Rosprom warned in February 2006 that the selection of Yantar would add a minimum of $100 million to the cost of the project and create a risk of not fulfilling the contract.

Russia is also experiencing problems with its contract with India to modernize the ship Admiral Gorshkov.
www.kommersant.com

All the Article in Russian as of Nov. 28, 2007

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