Yantar shipyard requests to postpone delivery date of Indian frigates

(Rusnavy) : Yantar shipyard (Kaliningrad) requested additional $100 for completion of three frigates built by the yard for $1.6 bln under Indian Navy's order, and asked to postpone deadline of the contract execution, writes Kommersant.

The contract for construction of three frigates for Indian Navy was signed in summer 2006; it is planned to deliver the ships in 2011-2012.

Director General of JSC Yantar Shipyard (Kaliningrad) explained that additional funds are needed to recharge floating assets.

"Lack of floating assets is mostly related with VAT refund problem; we can refund the tax only after all three frigates will be delivered to India. We see proper to ask Rosoboronexport to participate in the contract implementation with its floating capital, considering that Rosoboronexport is also responsible for realization of this contract", explained the shipyard's director.

According to him, "Indian partners are informed of the situation and accept these changes, because only time displacement concerns them".

The contract cost remains the same.