[UglyMowgli]

Russia is reportedly in talks to upgrade three Iranian submarines, a $270 million deal that could revive the bilateral arms trade but further irritate the United States.

Rosoboronexport, the state-owned arms selling agency, is in negotiations to refurbish three Kilo-class diesel submarines and equip them with Club-S anti-ship missiles, Kommersant reported Monday, citing unidentified sources.

Rosoboronexport refused to comment on the Kommersant report, as did St. Petersburg's Admiralteiskiye Verfi shipyard, which delivered the three subs to Iran in the 1990s.
The 200-kilometer range Club-S missile systems, which reportedly would be fitted on the Iranian subs, are unlikely to present a serious threat to the United States, said Makiyenko of the Center for Analysis of Strategies and Technologies, adding that the Americans "would get excited even if we sold them cartridges."

Source : http://www.moscowtimes.ru/stories/2005/07/05/041.html

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Moreover, Kommersant found out that Rosoboronexport is negotiating with Iran about repair and modernization of Iranian submarines. Iran has three submarines of Project 877EKM that were supplied by Russia in 1992 (Russian name of the sub B-219, Iranian—901 Tareq), in June 1993 (B-224, 902 Noor) and in November 1996 (B-175, 903 Yunes). It was expected that all the major components that already exceeded their life expectancy will be replaced. Also, the new anti-ship missile complex Club-S with the target distance of 200 km will be installed on these subs. The refurbishing of each sub would be done under the contract which costs anywhere from $80 to $90 million. Originally it was expected that the refurbishing will be done in Zvezdochka Co (Severo-Dvinsk) but Admiralty Shipyards are also fighting for the contract.


Source : http://www.kommersant.com/page.asp?id=588627