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Following India's announcement, Russia too has confirmed that problems relating to the price of the aircraft carrier Admiral Gorshkov have been sorted out, and that the aircraft will be delivered to India in a good shape.
Talking to journalists in New Delhi, new Russian envoy Alexander Kadakin said: "The pricing talks are successful and are sorted out. Gorshkov will be supplied to India in a very good shape as razor edge technology as India wants."
The Russian envoy further said: "We are building a new heart into a middle-aged gentleman Gorshkov, which will be called VikramAditya."
The pricing of the Admiral Gorshkov has been a contentious issue in the India-Russia strategic relationship for almost six years.
A deal for purchasing the ship was signed in January 2004. The original price was pegged at $974 million, but in November 2007, Russia asked India to pay $1.2 billion, and this year, pushed it up to $2.2 billion.
The eventual cost was pegged at a whopping $2.9 billion, which was almost three times the original cost.
Refusing to divulge the final price at which the deal has been struck, Ambassador Kadakin said unnecessary hype has been created over the deal.
Speculation suggests that the final price will be settled at $2.5 billion.
The price issue is believed to have been resolved during Prime Minister Manmohan Singh's recent visit to Moscow.
Both countries signed seven agreements, including a historic broad-based umbrella agreement on the peaceful use of nuclear energy.
According to Ambassador Kadakin, Russia will also supply a new batch of Sukhois. There was also progress on a probable purchase of medium-range transport planes, he added.