Ukraine to Modernize Russian Ships

29.08.2012 Ukraine and Russia negotiate on modernization of Russian Navy's ships at Ukrainian shipyards, said Prime Minister of Ukraine Nikolai Azarov at a briefing in Nikolayev, reports governmental web portal.

Azarov expressed confidence in the fact that "the talks will end up with signing of an agreement".

He emphasized that such contracts would make Ukrainian shipbuilding and ship-repair companies work-loaded.

Speaking on financing of national programs, Azarov pointed out that the government would continue supporting construction of up-to-date ships for Ukrainian Navy.

In particular, Azarov assured that the government would fully sponsor construction of a new corvette.

He reminded that funding of this project was opened in 2004 and cut off after the "orange revolution". In 2007, cabinet of Viktor Yanukovich resumed financing of the project, but it was suspended again after snap elections later that year.

In 2010, funding of that program was legally continued. "We will definitely complete this project and appropriate all required funds, since we really need an up-to-date fleet", Azarov said. According to Ukrainian tax code, shipbuilding industry is exempted fr om income tax for a 10-year period, reminded the premier. A new law supporting shipbuilding industry will promote its development as well.

In the framework of his working trip to Nikolayev, Azarov visited Chernomorsky Shipyard. He was accompanied by Deputy Defense Minister Dmitry Plyatsuk, Deputy Chief of General Staff Gen. Lt. Yury Dumansky, and Ukrainian Navy Commander Vice Admiral Yury Ilyin.

Visiting the shipyard, Azarov familiarized with the process of repair works on landing ship Konstantin Olshansky, guided missile boat Pridneprovye and reconnaissance ship Pereyaslav.

Also, the premier visited the workshop wh ere the new corvette Vladimir Veliky is constructed.