IMO, the article shows only one side of the story, these contracts were signed when Russia was desperately looking for customers of its massive arms industry, but with the massive growth in russia, the cost of materials as well as skilled manpower has gone up. It is possible that the cost escalation might have been much more than what either sides might have anticipated. If you look at it from the russian view point, they are bound to lose if they sell spares at the current rate and lose more if indians cancel further orders. Regardless of whatever situation it might be, a contract is a contract and it should be respected by both sides. If russians would have stuck to the price escalation as per the contract terms, they might have suffered a few losses, but nothing that couldn’t have been regained from the next deal or co development.
That’s a very relevant point regarding some of the cost increase- its not simply greed driving them- The Gorshkov being a simple example, it is unfortunate it caused so many problems, but expecting Sevmash to complete all the work at the originally agreed price is absurd. The plant managers have their share of the blame, I believe most were fired anyways for inaccurate price estimation…
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