Reportedly, no further details are known about the contract signing, which was brought to a question in the aftermath of failed talks on agreeing on pricing conditions.
The talks have been back on track after Russian President Vladimir Putin intervened, urging his Defense Minister Anatoly Serdyukov to come to terms with USC and agree on the final price.
Under the contract, the Russian Navy should renew its fleet with additional 10 new Borey class strategic nuclear submarines by 2020, outfitted with Bulava ballistic missiles.
Just a few hours upon Vladimir Putin’s inauguration ceremony in Kremlin, the newly elected Russian President passed his first decisions as the country’s leader, putting a focus on defense and foreign policy strategies, followed by modernization of weaponry and intelligence improvement.
The move stems from a desire to protect Russia’s strategic interests and strengthen its position as military super power. Having that in mind, the Russian government has allocated five trillion rubles ($156 bln) or a quarter of the entire armament procurement budget until 2020 for the purpose.
A contract for delivery of a set consisting of five Borey class nuclear submarines has been signed on Friday by the Russia’s Defense Ministry and United Shipbuilding Corporation (USC), Alexei Kravchenko confirmed to RIA NOVOSTI on May 28.
By Nevaltoday
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