In the New Year the Russian weapon merchants landed a big export order. The state enterprise Rosoboronexport and the Ministry of Defense of China signed a contract to supply two destroyers of the 965-EM project (export modernized project). The deal was made to the amount of $1bl., according to the experts' estimate. The warships shall be delivered to the customer by 2005. The Chinese navy already sports two destroyers of the same class. Both were manufactured by the St. Petersburg North Shipyard company and were transfered to the Chinese navy in 1999 and 2000. According to our government sources, Russia stands to get around $1bl. from selling these, with $610ml. to go to North Shipyard. Shortly after the contract had been signed, Russian bids were invited for the construction of the destroyers for the Chinese Ministry of Defense. The first to claim their participation were St. Petersburg Baltic Works and North-Dvina Nothern Machine-Building Enterprise. For the latter the project will be the first experience in surface ship construction. The results of the tender will be revealed in February.