Ukraine and Russia are holding negotiations on modernization of the ships of Russia’s Navy at Ukrainian enterprises, Prime Minister Mykola Azarov told a briefing in Mykolaiv, the press service of the Cabinet reported.

"The negotiations are being held. The Russians know very well that most parts of their fleet were built at our factories, and they understand that ships are better to be repaird at our plants. And I believe that these negotiations will be finished by signing the agreement," Azarov said.

The Prime Minister added that this will ensure the work of domestic shipbuilding and repair yards.

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