Procurement: Russia Raises the Rates

Archives

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.

 

X

ad

Help Keep Us From Drying Up

We need your help! Our subscription base has slowly been dwindling.

Each month we count on your contribute. 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.
Subscribe   contribute   Close