Russian navy prepared to take Admiral Gorshkov back if India doesnt pay more

[HAIDER]

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interesting article in Russian sorry, but it says that costs have spiraled out of control, they are renegotiating, Putin sent someone from the ministry to check things out at Severodvinsk, the result was that the ministrys man was impressed with the complexity of the work, they talked about the Borei and work on various Kilo upgrades too and the ministry man said if India wont take the boat than the Russian navy will.

the relevant part is here

"И если наши индийские визави наотрез откажутся пересматривать условия контракта, им вполне могут предложить неустойку. А переоборудованный корабль вернут в боевой состав российского флота."

Translated it says "if our indian guests refuse to renegotiate the terms of the contract we might offer them an exit from the contract. After the repair and upgrade the ship may return to the Russian fleet."

 

[Neo]

What about the Mig-29K, will IN still be interested in a land based version?

 

[Contrarian]

Ofcourse the Gorshkov is not going back to the RuN. Stupid to even discuss it.

 

[Bushroda]

Russians would be taking a big credibility hit if they back out on the deal now or try to renegotiate it. Not everyday one buys an A/C. Also given the amount of business India would be providing in coming future Russians would do well by not shooting themselves in the foot. I seriously doubt the credibility of the report but still, no way should India pay for the russian mismanagement.

 

[Keysersoze]

Russians would be taking a big credibility hit if they back out on the deal now or try to renegotiate it. Not everyday one buys an A/C. Also given the amount of business India would be providing in coming future Russians would do well by not shooting themselves in the foot. I seriously doubt the credibility of the report but still, no way should India pay for the russian mismanagement.

Actually it wouldn't really affect the Russians too much as they could either keep the ship (with their new aggressive foreign policy it would be quite useful). Or they could easily find a buyer in China for example.
India is basically over a barrel here and this is probably sending a signal to India along the lines of "you need us more than we need you" So if the MRCA goes toward America for example.......
Expect more hardball from the Russians. The resurgence of their economy means they are no longer anyones patsy.

 

[Bushroda]

Actually it wouldn't really affect the Russians too much as they could either keep the ship (with their new aggressive foreign policy it would be quite useful). Or they could easily find a buyer in China for example.

What makes you think that China would be any keen to buy Gorshkov?They already have Varyag project running & slowly they are moving towards self-reliance. Also, if Russians act this way with Indians what guarantee does it hold that they wouldn't do the same to Chinese? This is why I say Russians are going to take a serious credibility hit if they back out of this project. Moreover, nowhere did I read that Russians are asking for a price hike. At the most. the 2008 deadline might be missed.

India is basically over a barrel here and this is probably sending a signal to India along the lines of "you need us more than we need you" So if the MRCA goes toward America for example.......
Expect more hardball from the Russians. The resurgence of their economy means they are no longer anyones patsy.

Thats not how you conduct business. With this attitude a booming economy can very soon go bust. MRCA deal is only a small part of huge modernization taken up by armed forces. There are lot of goodies that would fly their way & russians know that very well.

 

[Sam Dhanraj]

It seems that both party will

1-agree to over 5% (earlier 2.5% i guess) annual cost esclation over all the arms contract( means all T90's, Sukhoi's and even Admiral Gorshkov...we will find out more by tuesday when they meet officialy...

2-I believe that their other demand was to change the payment currency mode from the depreciating dollar to the more stable euro.

3-another thorny issue is Russia’s refusal to sign the mandatory “integrity pact” for defence purchases.