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Business news, 22.01.2004 14:10

Baltiisky Zavod to build three new ships for India

Baltiisky Zavod to build three new  ships for India The St. Petersburg ship-building company Baltiisky Zavod will get $1 billion for the construction of three new battle ships for India.

India is preparing to pay $2.5 billion altogether for the aircraft carrier Admiral Gorshkov with a group of planes into the bargain, as well as for three battle ships and submarines that were ordered earlier. Some experts feel doubtful whether the Indian partners will meet their obligations to Baltiisky Zavod due to the lack of money. The ship-building company has not commented on these fears, only declaring that it is a matter of federal jurisdiction. A deputy of the Legislative Assembly of St. Petersburg, Gennady Ozerov (Post Captain in reserve), held an inspection of the aircraft carrier Baku (the former Admiral Gorshkov) in 1989. “The Baltiisky Zavod management does not have to worry that India will not pay for the contract. All the risks have been calculated in advance. As for the Admiral Gorshkov, I personally inspected it, and I know its condition well enough. To my mind, even though the aircraft carrier is leaving us, the work on its improvement will make the scientific potential of Russia develop”. The editor-in-chief of Export Vooruzheniya magazine, Maxim Pyadushkin, has similar views on the issue. In his words, the purchase contract of Admiral Gorshkov and the order of new frigate construction have nothing in common, therefore, the experts’ findings do not seem to be clear. “Indians have truly ambitious plans to buy armament. They have planned everything. They are unlikely to sign contracts without taking all the details into consideration”, Maxim Pyadushkin assures. “The value of the new order will depend on the options available, but it will surely vary around $1 billion”.

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