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Sunday, November 23, 2008

India, Russia fall out over carrier price

A $3.1 billion price hike for an ageing Russian aircraft carrier is severely straining ties with India.

Indian anger over the issue was fuelled yesterday when it was disclosed that Russian President Dmitry Medvedev had cut back next month's New Delhi visit to a single day.

In 2004, amid much fanfare about what an aircraft carrier would mean for India's world standing, New Delhi agreed to buy the Admiral Gorshkov -- to be renamed the INS Vikramaditya -- and had planned for the warship to be the centrepiece of Independence Day celebrations in August this year.

The deal was seen as providing India with a head start over its main Asian rival, China, which is believed to be building up to three carriers.

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