Procurement: Russia Raises the Rates


October 18, 2007: India has agreed to pay Russia a higher annual increase (to account for inflation and the fluctuating value of other currencies) for weapons. The old rate was 2.8 percent a year, while the new one is five percent. Russia had been withholding deliveries until an agreement was reached. Thus the new shipment of Su-30 kits (the aircraft are shipped in pieces, for assembly in India) will cost $40 million each, for 40 aircraft. This will give the Indians a total of 230 Su-30s (roughly equivalent to the U.S. F-15C) by 2010. Overall, the average price of each of those aircraft has been closer to $25 million each. That's a bit less than half the cost of an F-15C, and that price break is the major reason the Indians keep buying Russian warplanes.


Article Archive

Procurement: Current 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 



Help Keep Us Soaring

We need your help! Our subscription base has slowly been dwindling. We need your help in reversing that trend. We would like to add 20 new subscribers this month.

Each month we count on your subscriptions or contributions. You can support us in the following ways:

  1. Make sure you spread the word about us. Two ways to do that are to like us on Facebook and follow us on Twitter.
  2. Subscribe to our daily newsletter. We’ll send the news to your email box, and you don’t have to come to the site unless you want to read columns or see photos.
  3. You can contribute to the health of StrategyPage. A contribution is not a donation that you can deduct at tax time, but a form of crowdfunding. We store none of your information when you contribute..
Subscribe   Contribute   Close