http://www.geostrategy-direct.com/geostrategy-direct/secure/2004/11_02/ne.asp


Russia turns Kilo sub over to China

The Admiralteiskiye Verfi shipyard in St. Petersburg turned over the
first of two improved Kilo-class attack submarines to China's navy
last week, according to the Interfax news agency.

Shipyard Director Vladimir Aleksandrov said Oct. 21 that shipyard
officials, the state-run exporters Rosoboronexport and the Chinese
navy had signed a document confirming the transfer of the submarine.

The date for second submarine's delivery was not disclosed.

The two submarines were unveiled at the shipyard last summer and are
part of a Russia-China deal worth $1.5 billion that was signed in May
2002. The contract called for five submarines. Two are being built by
Admiralteiskiye Verfi while two others are being built by Sevmash in
Severodvinsk. The final one is being built by Krasnoye Sormovo in
Nizhni Novgorod.

The Kilos are considered one of the most advanced diesel electric
submarines in the world and will boost China's ability to conduct a
naval blockade of Taiwan.

Taiwan's government is debating a special defense budget of some $18
billion that would include purchases of up to eight U.S.
diesel-electric submarines.

Taiwan's Defense Ministry said in a statement last week that war could
break out across the Taiwan Strait between 2010 and 2020 if Taiwan
does not engage in an arms buildup. 










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