The Defense Ministry has just completed a massive deal for new-generation nuclear subs.
Seven contracts worth over $10 billion have been signed by the Defense Ministry and United Shipbuilding Corporation.
The deal is part of Russia’s large armaments modernization program, which is unprecedented in terms of tasks and funding provided.
Among the documents signed are the contracts to build Yasen and Borei class strategic nuclear submarines.
"In 2011, over 85 billion rubles [$300 million] will be allocated for building submarines and frigates, and repairing and maintenance of ships," said Prime Minister Vladimir Putin.
The armaments program is expected to radically renew the Navy's technical base, the PM stressed. This will help form a naval strategic nuclear forces group, comprised of fourth-generation nuclear submarines.
Putin added that all the submarines will be built by Russian companies.
"Our ship-building industry must be prepared for serial production of advanced hardware and weapons, fully compliant with modern standards and the tasks which the Russian navy must fulfill," the PM said.
This follows heated speculation that the Defense Ministry is not coping with demand.
On several occassions, officials failed to comply with deadlines set for signing the contracts for the weapons order – the most expensive in modern Russian history.
Both President Dmitry Medvedev and Prime Minister Vladimir Putin expressed dissatisfaction with the Defense Ministry’s record. The Defense Ministry insisted that the companies inflated the prices.