Gorshkov 'sole' irritant in Indo-Russian ties: Medvedev

Vinay Shukla

Moscow, July 2 (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 Gorshkov 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.

Russia, which was to deliver the upgraded aircraft
carrier in August 2007 to the Indian Navy for induction as INS
Vikramaditya, however, sought extra funds for the completion
of its refit.

Under the revised schedule INS Vikramaditya is expected
to join the Indian Navy in 2012 and India has agreed to
increase the financing of the project.

Under the USD 1.5 billion package deal signed in 2004,
Russia was to upgrade the vessel for USD 974 million.

Later citing the cost escalation due to additional
work required and depreciation of dollar value, Moscow
demanded extra USD 2.2 billion to complete the refit of the
carrier. PTI VS
rai