Russian Shipbuilders Fail to Agree Nuclear Sub Program Price

Defense Ministry, shipbuilders fail to agree price of 10 new 'Borey-class' nuclear submarines despite the intervention of President Putin

Russia’s Defense Ministry and the United Shipbuilding Corporation failed again to agree final contract terms for delivery of the new Borey class (Project 955) strategic nuclear submarine, despite the intervention of President Vladimir Putin who wants the submarines ot form the core of Russia's strategic ballistic missile force by 2018.

Defense Minister Anatoly Serdyukov said his ministry and the submarine manufacturer would return to talks in the future to agree a final price for the Borey boats by 2015.

“We agreed that we will return to price talks in 2015," he said. "Should the industry be able to demonstrate it has incurred any substantial costs, we may accept them, that is, recalculate them,” Serdyukov told journalists after the meeting with Putin. He did not state a price.

The Russian Navy is to receive at least 10 new Borey class strategic nuclear submarines by 2020. The submarines, to be armed with Bulava ballistic missiles , are expected to constitute the core of Russia's strategic ballistic missile submarine force after 2018.

Then-prime minister Putin said last year that the procurement of new warships and submarines for the Navy would be a priority over the next decade. The Russian government has allocated five trillion rubles ($156 bln) or a quarter of the entire armament procurement budget until 2020 for this purpose.

The signing of a contract for delivery of the Borey submarines has been repeatedly postponed due to the pricing dispute between the Defense Ministry and defense industry enterprises.