Russian shipbuilding plant Yantar has asked Russia's state arms exporter, Rosoboronexport, for an additional $100 million to complete construction of three frigates for the Indian Navy, Russian business daily Kommersant said on Thursday.
A $1.6-billion contract on the construction of the ships was signed in summer 2006. Although the ships were scheduled for completion by 2011-2012, a lack of funds has delayed construction, the paper said.
"The lack of funding is linked to the VAT refund problem: we will only receive [the money] after the frigates have been supplied to India," Igor Orlov, the director general of the Kaliningrad-based plant, told the paper.
A source close to Rosoboronexport told Kommersant the Indian side was aware of the issue and was treating it "with understanding."
"We are not considering increasing the contract price for India," the source said. "We propose the problem be settled using domestic reserves, including those of the United Shipbuilding Corporation."
Russian shipyards have struggled to complete Indian naval contracts on time and budget on several occasions. The price of a refit for the the Admiral Gorshkov aircraft carrier has been almost doubled, and its completion date was put back from 2008 to late 2012.
MOSCOW, December 16 (RIA Novosti)
The fact of registration and authorization of users on Sputnik websites via users’ account or accounts on social networks indicates acceptance of these rules.
Users are obliged abide by national and international laws. Users are obliged to speak respectfully to the other participants in the discussion, readers and individuals referenced in the posts.
The websites’ administration has the right to delete comments made in languages other than the language of the majority of the websites’ content.
In all language versions of the sputniknews.com websites any comments posted can be edited.
A user comment will be deleted if it:
The administration has the right to block a user’s access to the page or delete a user’s account without notice if the user is in violation of these rules or if behavior indicating said violation is detected.
Users can initiate the recovery of their account / unlock access by contacting the moderators at firstname.lastname@example.org
The letter must contain:
If the moderators deem it possible to restore the account / unlock access, it will be done.
In the case of repeated violations of the rules above resulting in a second block of a user’s account, access cannot be restored.
To contact the team of moderators, write to email@example.com