Yesterday the Second International Naval Show (IMDS-2005) finished its work in St. Petersburg. During its course there were negotiations about new shipments of naval military equipment to China and Mexico, and about the refurbishing Iranian submarines.
On the show about 300 Russian defense companies demonstrated their production ready for export. In the Sea Station pier, the visitors were able to examine ships from the Russian Navy. For a first time on the show was a demonstration of the Russian submarine of new generation “Sankt-Petersburg” Project 677 “Lada”, which the state company Admiralty Shipyards finishing for Russian Navy. The export version of this sub –Project 1650 “Amur”- the Admiralty Shipyards was offering to India for sale. However, Indian Navy preferred to buy six French subs Scorpene and currently finalizing the negotiations of the deal that amounts to $1.8-2 billion.

However, Admiralty Shipyards signed contracts with India and China to supply parts for the diesel-electric submarines of Project 877EKM and their modernized version of Project 636 that were sold to these countries earlier. Each contract is appraised at about $1 million. The Indian Navel force has 10 submarines of Project 877EKM and two more would be shipped this year directly from the Russian navy. China has two subs of Project 877EKM and two of Project 636. From last year, the Chinese navy also started to receive new subs of Project 636 that according to a contract from 2002 will amount to eight submarines worth $1.4 billion.

The St. Petersburg shipbuilding company Almaz was negotiating with representatives of the Chinese defense ministry. Before the end of the year, they hoped to sign a contract for the building of two Zubr Class Air Cushioned Landing Craft (CMSTS) of Project 1232.2 with options for several more such ships. Each craft costs more than $60 million. And the corporation Concern of Middle and Small Tonnage Shipbuilding until the end of the year plans to strike an agreement with Mexico for not less than two patrol cutters of Project 14310 Mirage. “Cameroon is also interested to buy Cutter of the Project 12150 Mongoose. Within several months they are ready to sign a contract for up to 10 Mongooses,” Valentine Lyashenko, deputy director of CMSTS told Kommersant.

Moreover, Kommersant found out that Rosoboronexport is negotiating with Iran about repair and modernization of Iranian submarines. Iran has three submarines of Project 877EKM that were supplied by Russia in 1992 (Russian name of the sub B-219, Iranian—901 Tareq), in June 1993 (B-224, 902 Noor) and in November 1996 (B-175, 903 Yunes). It was expected that all the major components that already exceeded their life expectancy will be replaced. Also, the new anti-ship missile complex Club-S with the target distance of 200 km will be installed on these subs. The refurbishing of each sub would be done under the contract which costs anywhere from $80 to $90 million. Originally it was expected that the refurbishing will be done in Zvezdochka Co (Severo-Dvinsk) but Admiralty Shipyards are also fighting for the contract.

Vladimir Pakhomov, deputy director general of Rosoboronexport, stated in the IMDS-2005 show that naval ships and systems this year will take first place among all Russian weapons exports and according to him the company is planning to export production of the military use for $5.1 billion from which 51 percent will be military naval equipment. Last year, Rosoboronexport exported weapons valued at $5.12 billion, from which only 24 percent were represented by naval production.