Friday, December 28, 2012

France and Russian Ship Deal - Russia not to Build its Own Ships

Here is the story:

Russia's new Defence Minister has made the decision that Russia will not build Mistral class helicopter-carriers, the Vedomosti newspaper reports with reference to sources in the Defence Ministry. 
According to earlier agreements, France was to build two such ships, with the costs totalling more than a billion euros, while Russia was to build two more ships at its own shipyards. 
But, according to the periodical, the concept of using Mistral class ships by the Russian Navy has turned out to be questionable, while the building and maintenance costs, too heavy. 
France is already building two helicopter-carriers for Russia, with the first one due to be commissioned in 2014, while the second one, in 2015.
Both naval ships will be based in Vladivostok.

My question on this particular case is whether or not Russia is backing out because it just doesn't have the capacity to build enough advanced ships for its own navy while maintaining its ship export commitments.

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