You're reading: Update: Russia plans to update Black Sea Fleet

MOSCOW, Oct. 25 (Reuters) - Russia plans to upgrade its Black Sea Fleet with 18 new vessels over the next decade after a deal with Ukraine to extend the lease on the fleet's base, a navy source was quoted by Interfax as saying on Monday.

Ukraine agreed in April to extend the Russian fleet’s Sevastopol base lease until 2042 in return for a 30 percent cut in gas prices, a step that underlined Kiev’s shift back towards Moscow after the election of President Viktor Yanukovich.

The fleet has fallen into disrepair and many of the vessels are not seaworthy, but Russia plans to modernise it and add at least six frigates and six diesel-powered submarines, Interfax cited a source in Russia’s naval command as saying.

"In accordance with the State Armament Programme from 2011 to 2020, the Black Sea Fleet will receive 18 new vessels," the source was quoted as saying.

The source said the fleet would also get upgraded Sukhoi-24M bombers to replace older versions now in use. A navy spokesman declined to comment on the news agency report.

The base deal marked a turning point in relations with Moscow as Yanukovich, elected in February, steered Ukraine closer to its former Soviet master and ditched Kyiv’s pursuit of NATO membership.

Such a major upgrade of the Russian fleet would require consent from Ukraine, which is trying to renegotiate a 10-year gas deal agreed in 2009 after Russia cut supplies to its neighbour in a pricing dispute.

Russian gas monopoly Gazprom has said it could cut gas prices if Ukraine agreed to merge its state gas company, Naftogaz, with Gazprom. The issue of gas prices will be raised when Prime Minister Vladimir Putin visits Kyiv on Oct. 27, Ukrainian officials say.