Article Posted on : - Jul 03, 2009

A file photo of the Admiral Gorshkov which will replace India's INS Viraat after modernization.

Moscow (PTI): Describing the delay in upgradation of 'Admiral Gorshkov' aircraft carrier for Indian Navy as the "sole" irritant in bilateral ties, Russian President Dmitry Medvedev Thursday ordered the shipbuilders to speedily complete the work or else it will have "serious consequences."

"In fact the 'Gorshkov' project has become the sole problem in Russian-Indian relations," Medvedev said during a visit to the Sevmash shipyard in the White Sea town of Severodvinsk. The Russian President also blasted the management, bureaucrats and Ministers involved in the project.

He agreed that it was Russia's first project which was "very difficult," but said that the Russian side has taken certain obligations in the course of negotiations on the Gorshkov deal with the Indian partners.
Prior to the Soviet collapse, aircraft carriers used to be built in Ukraine.

Responding to Sevmash General Director's argument about the whopping cost escalation due to additional work in the course of modernisation, an irritated Medvedev said in his televised remarks,

"Why did you sign (Gorshkov deal)? As a result all of us have to give explanations, you to me and me before the Indian colleagues. Complete the work and deliver the ship, otherwise it would have serious consequences," Medvedev cautioned.

Russian arms export firm Rosoboronexport in 2004 signed a deal to refurbish the carrier for 970 million dollars, but last year demanded India pay an additional 1.2 billion dollars. The aircraft carrier is currently docked at the Sevmash shipyard in northern Russia, with over 2,000 workers employed on the project. The Admiral Gorshkov is to replace India’s INS Viraat. After modernization, the carrier is expected to be seaworthy for 30 years.

Russia accounted for 70 percent of Indian arms supplies in 2008, but late deliveries and commercial disagreements have led New Delhi to turn to suppliers such as Israel, Britain, France and the United States.