Baltiisky Factory (Saint Petersburg) Puts Russia-China Agreement under Threat - 8 October, 2002

The Baltiisky Factory has put the fulfillment of an agreement between Russia and China under threat. One of the senior directors of the shipyard Northern Wharf told a Rosbalt correspondent that the Baltiisky Factory board of directors had decided to end its cooperation with the Northern Wharf.

According to the Northern Wharf director, the two factories had signed a contract concerning the supply of caldrons for destroyers which are being built at the Northern Wharf for the Chinese Navy. The production of the caldrons was part of an international agreement between Russia and China. ' As agreed in the contract Baltiisky Factory received an advance payment which it must now return,' said the director of the Northern Wharf. 'However, we will of course find a new supplier.' According to the Northern Wharf representative, there are a number of enterprises in Russia which produce the caldrons necessary for Chinese destroyers.