The Russian Defence Ministry has finally signed an agreement with United Shipbuilding Corporation (USC) concerning the prices of Yasen and Borey-class nuclear-powered submarines.

According to RIA Novosti, price negotiations between the company and the ministry for the Borey (Project 955) and Yasen (Project 885) submarines and other major contracts were ongoing for several months.

The agreement also allows the shipbuilder to select its own subcontractors, unlike previous contracts wherein the Defence Ministry selected the subcontractors.

The signing of the contract is part of a ten-year, $730bn military modernisation programme launched in 2010.