Russian delivery: India hopeful despite setbacks | india | Hindustan Times
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Russian delivery: India hopeful despite setbacks

india Updated: Feb 19, 2010 19:05 IST

Admitting "setbacks" in its relations with Russia over delays in defence supplies, India on Friday said the two sides have signed an agreement which will help in improving the product support from that country.

"There may be delays and setbacks sometimes but we have a long relationship with Russia... There have been delays in delivery and product support in the past.

"But after the signing of the Inter-Governmental Agreement (IGA) with Russia, issues have been sorted out. Things are moving faster now," Antony told reporters after the induction of Russian-made MiG-29K maritime fighters into the Navy at a ceremony here.

He was asked if India needed to review its defence relations with Russia in view of the delays in delivery of aircraft carrier Admiral Gorshkov and various other defence supplies.

India had placed orders for Admiral Gorshkov in 2004 as part of a USD 1.5 billion deal and it was supposed to arrive in India in 2008 after refurbishment in Russian shipyards but the delivery has been delayed after constant review of its price by Russia.

Russia is now asking India to give USD 2.9 billion more for the trials and refurbishment of the 44,500 tonne warship, which India is not willing to pay.

The Defence Minister said the negotiations on the price issue are in "final stages".