Vedomosti learned at a military complex enterprise working on Indian contracts that India was "highly likely" to sign documents on the ten-year lease of two decommissioned Project 971 Shchuka nuclear submarines, which are currently at the Amur Shipbuilding Yard. Besides this, the countries may sign a contract for the delivery of two Project 877 Varshavyanka diesel submarines and three or four Tu-22M3 medium-range bombers.
The re-fitting of one Shchuka submarine is 70% complete (the other is 30%-40% complete) and will cost India at least $400 million, while the leasing fees will be around $25 million a year, according to a source with knowledge of the situation at the shipyard.
Marat Kenzhetayev, an expert at the Center for Disarmament Studies, said the refits, the construction of coastal infrastructure, and crew training may bring Russia $2 billion. The Shchuka submarines will probably be equipped with Bramos anti-ship missiles developed by Russia and India. These missiles can also be installed on Tu-22M3 bombers. According to Mikhail Barabanov, a naval expert, India's Navy will thereby secure superiority over its neighbors, including Pakistan and China, in the Indian Ocean in the long term.
Moscow Defense Brief Editor Ruslan Pukhov said talks on the sale of another three Project 1135.6 frigates (a contract for the sale/purchase of three frigates worth $900 million was implemented this year) and Amur type submarines will begin after Mr. Putin's visit.
