Algeria plans to order an additional two Project 636 Varshavyanka (‘Kilo’)-class diesel electric submarines from Russia by the end of the first quarter of this year, Russia’s ITAR-TASS and Interfax news agencies reported on 24 February.

The ITAR-TASS story, which was posted on the Rostec group’s website, said the deal would be signed in the first half of 2014. The vessels will be built at the Admiralty Shipyard in St Petersburg and delivered by 2018. Interfax cited a Russian shipbuilding source as saying the contract might exceed USD1.2 billion.

Algeria signed a contract in 2006 to buy two 636 boats, which the daily Kommersant said was worth USD400 million, but other media outlets claimed was up to USD600 million. […]