Media Got Wind Of Submarines Cost

03.11.2011 Russian defense ministry and United Shipbuilding Corporation (USC) managed to agree upon costs of three submarines for the Navy; the military will get the subs at actual value, writes Kommersant referring to an informed source.

As a result of agreement, SSGN Severodvinsk (Project 885 Yasen) will cost defense ministry RUR 47 bln; SSBN Yury Dolgoruky and SSBN Alexander Nevsky – RUR 23.2 bln each, reports the newspaper.

The contract for three nuclear subs is to be signed within the nearest week. Until recently, it had been the only agreement unsettled under State Defense Order 2011. According to Vedomosti newspaper, overall cost of three submarines exceeded RUR 100 bln which is several billions less than USC initially asked. This sum also includes completion of Yasen project evaluated as RUR 13 bln.

Presently, a special board set for adjustment of disputes between USC and defense ministry elaborates a new scheme of value determination and contracting which is expected to work in State Defense Order 2012. No details of the new contracting system are specified. According to the Kommersant's source, future contracts will help USC to keep profitability at positive level. Earlier on, USC president Roman Trotsenko said that defense ministry was trying to shake prices for the submarines making the corporation's overall percentage of profitability "minus 24 per cent".

Except for the contract for projects 885 and 955, defense ministry and USC tied another important agreement allowing the corporation to select subcontractors independently. Previously, that was a privilege of the ministry. New scheme is expected to make shipbuilders more responsible for defense contract execution, since all expenses would be upon them.