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Forum bulletin

OSK Proposed an Alternative to Mistral

July 16, 2010

Russia and France are now negotiating for purchase of four Mistral-class amphibious-assault ships. The parties are discussing the number of ready-to-operate ships Russia can purchase and the number of ships to be built at Russian shipyards under license.

United Shipbuilding Corporation (OSK) found an alternative to French Mistral ships and suggested that the Ministry of Defense of the Russian Federation should purchase an analogous Korean ship – Dokdo – at the cost of USD 650 mln.

The Korean amphibious-assault ship was designed by Daewoo Shipbuilding&Marine Engineering (DSME) which is another party of an agreement concerning foundation of a joint venture and construction of a shipyard at the Far East arranged with OSK.

The Korean party could issue a license to OSK so that Dokdo could be built at one of Russian shipyards.

Before that an application concerning check of competition law compliance when purchasing French machinery was submitted to the Federal Anti-Monopoly Service by Yantar Shipyard. FAS refused to consider the application having mentioned that it does not control state purchase contracts for armament.

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