UK awards €4.6bn nuclear sub contract to own firm after France snubbed

UK's largest arms manufacturer, BAE Systems, has been awarded a €4.6 billion contract to build a new generation of submarines, which caused a diplomatic storm with France. 

As part of the Aukus military pact, Australia, the UK, and the US in March announced plans to provide Australia with nuclear-powered submarines after canceling a contract originally promised to France.

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BAE Systems Chief Executive Charles Woodburn said the contract "reinforces the Government's support to our UK submarine enterprise and allows us to mature the design, and invest in critical skills and infrastructure to support our long-term national security". 

BAE said the funding will pay for development work to 2028, with manufacturing of the first SSN-Aukus submarine expected to start towards the end of this decade and delivery will be in the late 2030s.

Till that time, the US and the UK will have continued rotating presence of their nuclear submarines in the region.

The SSN-Aukus will be the biggest, most powerful and advanced submarine of its kind ever operated by the Royal Navy and will eventually replace the Astute class of subs, according to BAE.

Other major UK military contractors such as Rolls Royce are also getting a piece of the action after the UK shifted its focus to the Indo-Pacific region, both in terms of its security posture and trade relations as part of the West's grandstanding vis-a-vis China.

The Ukraine war against Russia has been another source of income for UK's arms manufacturers reaping profits from the conflict by signing deals to ramp up weapons and equipment supplies to Kiev.

This includes providing the former Soviet country with artillery guns, drones, missiles, and other items such as battle tanks.

In the meantime, both the UK and Australia plan to use the SSN-Aukus submarines, which will be based on a British design.

Speaking at a Conservative Party conference in Manchester, UK Defense Minister Grant Schapps on Sunday confirmed the finalization of the contract with BAE.

"This multi-billion-pound investment in the Aukus submarine program will help deliver the long term hunter-killer submarine capabilities the UK needs to maintain our strategic advantage and secure our leading place in a contested global order," Shapps said.

The Aukus security alliance - which was first announced in September 15, 2021, saying it would shore up stability in the Indo-Pacific- has repeatedly drawn criticism from around the world.

China has criticized the Aukus pact, denouncing the US-led western military objectives as "Cold War mentality."

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The announcement of the Aukus alliance was preceded by a rift between France and Australia, which had previously promised to purchase €56 billion worth of nuclear submarines from Paris.

However, Canberra cancelled the contract without notice — prompting Paris to recall its ambassador after what French Foreign Minister Jean-Yves Le Drian called a, "stab in the back".

Canberra later agreed to pay €555 million in damages to France’s arms manufacturer Naval Group for contract renegation, settling the international dispute.

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