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Admiral Gorshkov: Gone with the wind?

The new Russian threat is reflective of both the ruthless bargains that the Russians are famous for and the recent turbulence in overall Indo-Russian relations.

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Russia says the deal can be scrapped; gambit seen as part of pressure tactic to up the price

NEW DELHI: Even as a high-powered Indian delegation began a crucial trip to Russia to assess the latter’s demand for an increase of $1.2 billion in the Admiral Gorshkov contract price, Moscow sent out signals that it wouldn’t mind scrapping the deal with India, and buy the aircraft carrier back for its own navy.

The new Russian threat is reflective of both the ruthless bargains that the Russians are famous for and the recent turbulence in overall Indo-Russian relations.

The Russian aircraft carrier, bought by India in a $1.5 billion deal in 2004, is undergoing a refit in Russia. The entire contract had recently run into rough weather with the Russians demanding another $1.2 billion, saying the cost of refurbishing the aircraft carrier was much more than what they had originally assessed.

In the original contract, signed on January 20, 2004, the Russians were to get $800 million for refurbishing the carrier, and the rest was for fighters, helicopters and the rest of the items.

An Indian delegation headed by defence secretary Vijay Singh and comprising senior representatives from all departments involved in the deal left for Russia on Tuesday to carry out an extensive assessment of the Russian demand at the Sevmash shipyard, where the 45,000-tonne carrier is undergoing a refit.

“They are going with an open mind. They will come back with their assessment, based on which the CCS (cabinet committee on security) will take a final call,” a cabinet source told DNA last week. The source had said that the government understood that there was some merit in the Russian argument, but $1.2 billion “looks exaggerated”.

But now, adding a new twist to the ongoing standoff, Russian sources have been quoted by a local news agency as saying that they wouldn’t mind buying back the carrier for the Russian Navy. “Now this issue is under negotiations, and if we fail to reach a compromise with India on the contract and its price, the aircraft carrier could be bought by the Russian defence ministry,” an unnamed defence industry source was quoted as saying by RBC business newswire.

Many observers see this comment as a pressure tactic to obtain the best price from the Indian side. But some others see the uncertainties in Indo-Russian defence ties as part of a larger Russian irritation with India’s aggressive courting of the US.

Even as it shocked India with the demand for $1.2 billion extra for Gorshkov, the Russian side has also delayed the handing over of a nuclear submarine on lease to the Navy.

The Akula class submarine was officially expected to be handed over to the Indian Navy in June this year, but it has been delayed without any clear explanation.

Russia has the need and the capability to buy back the Gorshkov, as Putin’s aggressive military modernisation drive goes into high drive. In fact, one of the reasons for the recent delays in the Gorshkov refit was that most Russians working on the carrier were diverted to start construction of the first line of submarines for Russia after the collapse of Communism.

India is in a trap. It has already paid over $500 million to the Russians. In fact, it was this Indian money that helped the Russians to reinvigorate the Sevmash shipyard, lying dormant since the Soviet Union collapsed.
j_josy@dnaindia.net

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