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This is an archive article published on December 8, 2007

Antony: ties with Russia not one-contract specific

Days after the Navy Chief lambasted Russia for delays and price escalations in the Gorshkov aircraft carrier deal...

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Days after the Navy Chief lambasted Russia for delays and price escalations in the Gorshkov aircraft carrier deal, Defence Minister A K Antony came to Moscow’s defence and said that growing relations with the US would not impact ties with “old friends” that have “stood the test of time”.

Cozying up to Russia, which has come under increasing criticism by the Indian military establishment for repeated delays in delivery schedules, Antony said that relations with Moscow are not “issue or contract specific”.

“Nobody should feel that our fast improving relations with the US are

at the cost of old friends. We will maintain the old friendship with Russia. Our relations are not one-contract or one-issue specific,” he said, after witnessing a firepower demonstration by the Indian Air Force here.

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However, in clear contradiction of the Navy Chief’s stance that the $1.5-billion Gorshkov contract should not be opened for renegotiations, Antony said that discussions are on to sort out the issue and a final decision on the matter would be taken by a Cabinet committee. Moscow had earlier stunned India by almost doubling the cost of refurbishing the carrier by demanding $1.2 billion more, taking the total price of the contract to $2.7 billion.

“Some discussions are going on. After that, we will place it before the highest body — the concerned Cabinet committee. The final decision will be taken after negotiations are over,” said Antony, adding that Indo-Russian ties have stood the test of time for the past 60 years and occasional problems can be sorted out amicably. On Monday, Admiral Mehta created a controversy by saying that a “rethink” on India’s relations with Russia may be required with changing times and there is a conscious thought within the defence establishment of not putting “all eggs in one basket”.

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