Russia and India will sign an additional upgrade contract on the Admiral Gorshkov aircraft carrying cruiser, according to a senior Russian military cooperation service official.
Deputy service director Alexander Fomin said the document will be signed in February-March this year.
Both nations have been negotiating the final cost of the project to upgrade the aircraft carrier following Russia’s request for an additional $1.2bn.
In December 2009, reports said India would pay Russia $2.3bn to refit the Admiral Gorshkov, according to RIA Novosti.
The Admiral Gorshkov is a modified Kiev-class aircraft carrier with a displacement capacity of 45,000t and a maximum speed of 32 knots.
The ship is expected to be commissioned and transferred to the Indian Navy as INS Vikramaditya by 2012.
The original $1.5bn deal for the acquisition of Admiral Gorshkov was signed in 2004 between Russian arms exporter Rosoboronexport and the Indian Navy.
The deal also includes the delivery of MiG-29K Fulcrum carrier-based fighters.