Ohio/Columbia/Borei cost

[PaoloOvada]

Hello to everyone, it's my first post.

We can read that a new Borei class submarine costs 720M, a old Oho class has cost 2 billions, and the new Columbia class will cost the double.
How is it possible?
Are my data wrong?
Is the Borei less effective that the others?
The answer is different?

Excuse me cause my poor english.

 

[ngatimozart]

Hello to everyone, it's my first post.

We can read that a new Borei class submarine costs 720M, a old Oho class has cost 2 billions, and the new Columbia class will cost the double.
How is it possible?
Are my data wrong?
Is the Borei less effective that the others?
The answer is different?

Excuse me cause my poor english.

Hi Paolo, welcome to the forum. The answer may be that the building costs for the Borei are much cheaper than the US submarines.

 

[PaoloOvada]

Hi Paolo, welcome to the forum. The answer may be that the building costs for the Borei are much cheaper than the US submarines.

Thank you of your kindness, but I'm surprised that a single Columbia will cost as the entire Borei class just cause of that.

 

[Feanor]

Thank you of your kindness, but I'm surprised that a single Columbia will cost as the entire Borei class just cause of that.

Russia subsidizes domestic energy costs, quite a bit. And given the climate in which Sevmash operates, those are considerable. Keep in mind Russian budget allocations are not made in dollars. Russia has very weak currency, meaning the nominal dollar cost of Borei subs is cheap but the buying power of the roubles spent on them is not adequately reflected by simply converting into dollars. Finally even in buying power, Russia just pays less to their workers.

EDIT: Whoops, typo. To be clear, Russian budget allocations are made in roubles which has buying power disproportionately greater then its exchange rate.

 

[Sandhi Yudha]

I think its more interesting to discuss the huge costs differences between the Project 955 Borei class and the Project 885 Yasen class. From which I understand the latter class can be triple in cost than the Borei class. I know the Borei class use the same fuselage/hull from the Project 971, but I expect there are more reasons for the huge differences...