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Defense Ministry Signed Contract for Borei Subs

Defense Ministry Signed Contract for Borei Subs 30.05.2012
Text: Lenta.Ru
Photo: Press service of JSC Sevmash shipyard
Russian Defense Ministry and United Shipbuilding Corporation (USC) signed a contract for five Borei-class strategic submarines, reported Interfax on May 28 referring to USC spokesman Aleksey Kravchenko.

According to him, two contracts were signed under the State Defense Order 2012. The first agreement was tied with Sevmash shipyard for five Borei subs, and the second one was tied with Rubin Design Bureau for development works on those subs.

However, RIA Novosti reports about three contracts signed. As for the news agency, Sevmash will build only one Borei-A submarine, and other four will be constructed directly by USC.

Earlier on, defense ministry and the corporation had different views on Borei subs prices. The military wanted to reduce price from RUR 124 bln down to RUR 87 bln; on the contrary, USC insisted on raising the contract value up to RUR 130 bln.

The meeting was held on May 25 in Novo-Ogarevo with participation of president Putin in order to settle the price dispute. Minister of Trade and Industry Denis Manturov said "the compromise solution was finally found". According to Kommersant, the compromise lies in the fact that USC will receive RUR 124 bln for construction of Borei-class submarines, being entitled to request additional financing in 2015.

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