Venezuelan President Hugo Chavez expects to sign a $1 billion contract next month for four brand-new Russian Kilo Class Type 636 submarines with $800 million financed by state-owned arms exporter Rosoboronexport.
The deal is expected to be finalized next month when Chavez goes to Moscow for Medvedev's inauguration.
Unlike nuke boats, the Kilos rely on diesel-electric power for propulsion so they must regularly operate on the surface or at snorkel-depth to run the diesels. Therefore, their operating capabilities are limited. Yet, they are sneaky bastards that could cause trouble by exploiting weaknesses. China operates two Type 636 submarines and Indonesia has two on order.
Kilo-Class Type 636 Submarine
The Type 636 is advertised as one of the quietest diesel boats in the world. It has a maximum diving depth of 900 feet and attains speeds of 11 knots surfaced and 20 knots submerged. The submarine can be fitted with cruise missiles (range 220 km) and it has six 533 mm torpedo tubes in the bow.
With the bulk of Venezuela's oil revenue being used to make the South American country into a socialist utopia, Chavez lacks cash for outright purchases and must finance his arms deals. Moscow and Caracas are coordinating the $1 billion funding for the submarines plus $500 million for Ilyushin Il-76 cargo aircraft. Also being discussed are contracts for a dozen or so Sukhoi fighters.
Interesting, there is a hint of reluctance on the part of the Russians regarding the financing of arms purchases.
A source in the Federal Military-Technical Cooperation Service said the lending of money to Indonesia for arms purchases had proven ineffective. He said Rosoboronexport could only finance arms manufacturing projects on Russian territory, and that Venezuela had to pay for personnel training, financing transport and insurance expenses and Rosoboronexport's commission fee.So, even with his oil reserves, Chavez still has to qualify for a loan.
In any event, no reasoning has been disclosed as to why Venezuela needs submarines.
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