Gorshkov price deal unlikely during PM’s visit to Russia

Admiral Gorshkov deal is unlikely to be clinched during Prime Minister Manmohan Singh's visit to Moscow next month.

No end seems to be in sight in the protracted price negotiation for Admiral Gorshkov aircraft carrier and the deal is unlikely to be clinched even during Prime Minister Manmohan Singh’s visit to Moscow next month,increasing uncertainty over its timely delivery in 2012.

“No,it will not,” Defence Minister A K Antony told reporters in New Delhi on Friday on the sidelines of an Institute of Defence Studies and Analyses (IDSA) event,when asked if the price deal would be concluded during the Prime Minister’s State visit to Russia in December.

Defence Ministry officials,when queried about the price talks,said only two defence agreements would be signed during the Prime Minister visit to Russia…to extend military and technical cooperation by another 10 years to 2020,and for assured after-sales maintenance and spare parts supply of Russian defence equipment used by the Indian Armed Forces.

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The Russians have been demanding an additional USD 2.9 billion for the 45,000-tonne Gorshkov.

“The talks for a new price could go into next year,” the officials said,when asked when it would conclude. The Kiev-class warship,for which India signed a contract with Russia in 2004 for USD 974 million,was originally scheduled for delivery in 2008.

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