As price renegotiations for the Gorshkov aircraft carrier have entered the final phase in New Delhi, a top Russian officer has said the Nerpa nuclear attack submarine, which recently met with an accident that killed 20 sailors onboard, will not be leased to India but would be inducted into the Russian Navy.

The Akula II class was to join the Indian Navy as the Chakra next year under an estimated $1-billion lease that was linked with the Gorshkov deal. However, the Chief of General Staff, Nikolai Makarov, has been quoted by a leading Russian daily saying that the submarine’s refit will be paid for by the Russian defence ministry.

“The sum of $650-780 million that Rosoboronexport and the Amur Shipbuilding Plant had negotiated over a long period of time with the Indian Ministry of Defence, will now be found within Russia. Either from the budget allocations for the purchase of new military equipment and weapons or beyond it,” the Rossiiskaya Gazeta has quoted General Makarov as saying.

While India and Russia have never officially acknowledged the deal, India was set to get the Nerpa submarine under a 10-year lease in 2009 to train its personnel on nuclear powered submarines in preparation for its own range of Advanced Technology Vessel subs.

However, the Russian statement, and media reports in recent days that Moscow will rather keep the Gorshkov for itself than giving it to India for a lower price, does not come as a surprise to analysts who believe that it is part of a series of tactics to seal the price renegotiation of the aircraft carrier.

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