Cooperation between a Russian Shipyard and Azerbaijan’s Caspian Shipping Company May Be Restored

Business Materials 25 April 2007 21:24 (UTC +04:00)

Azerbaijan, Baku / Trend , corr I. Khalilova/ The Russian Trade Representative Office to Azerbaijan optimistically views on resuming cooperation between Russia's Shipyard - "Krasnoye Sormovo" and the Azerbaijan State Caspian Shipping Company. Yuriy Schedrin, the Head of the Russian Trade Representative Office to the Country, has said today that the Azerbaijani Caspian infrastructure needs to be modernized by adding that the Caspian Shipping Company has plans to buy 11 tankers, 10 dry cargo ships, and 6 ferries from the Russian Shipbuilding Facilities.

"I think that "Krasnoye Sormovo" will play not the last role in this issue, since this Shipbuilding Facilities are specialized on the "river-sea" type," said Mr. Schedrin.

The previous contract between the Russian Shipyard and the Caspian Shipping Company expired in 2006. Within the mentioned contract, eight vessels had been built for Azerbaijan. "The non-prolongation of the contract was explained by some unjustified actions taken by "Krasnoye Sormovo" that has increased the cost for building of one vessel since $12 mln. up to $20 mln. All that has taken Azerbaijan aback. "However, the last events give grounds to believe that this cooperation will be restored," said Mr. Schedrin.