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RF defence ministry to sign nuke subs contracts with shipbuilders Nov 9

“It is expected that these contracts will be signed on November 9,” the source said

MOSCOW, November 6 (Itar-Tass) —— Russia’s United Ship-building Corporation and the Ministry of Defence plan to sign contracts for the manufacture of Yasen-class nuclear-powered submarines and Borey-class strategic submarines on November 9, a source in the defence industry commission told Itar-Tass.

“It is expected that these contracts will be signed on November 9,” the source said.

The signing date has been postponed more than once.

Earlier in the week, a source in the Ministry of Industry and Trade told Itar-Tass that the sides had reached a compromise on prices. “Both sides made concession to meet each other halfway,” the source said. According to the source, the agreements are based on an utterly new principle. “The sides agreed that striking state defence order deals, ship builder will be authorized to choose subcontractors, and hence, will be responsible for the execution of contracts, while until now subcontractors were chosen by the Ministry of Defnce,” the source noted. About 70 percent of the contract price come to subcontractors.

Thus, the price of the contract on nuclear submarines with the Malakhit Design Bureau went up from 6.4 billion roubles offered by the Ministry of Defence to 13.3 billion roubles, the source said added that apart from that the sides squared new approaches to contracting.

Agreements on prices, new approaches to contracts, and their terms were reached at a meeting with Russian Deputy Prime Minister Igor Sechin.

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