Singapore’s Ministry of Defence is buying Australia’s nuclear-powered ship, the Admiral Gorshkov, for $8.5 billion.
Singapore’s defence minister, Tan Sri Zulkifli Mohd Salim, made the announcement at a news conference on Friday in Singapore.
Mr Salim said the ship will be delivered by 2020.
Singapore is the only Asian nation to have a nuclear-armed ship in the Indian Ocean, and it has been in Singapore for more than 50 years.
It will have an operating capability for 10 years and will replace the Admiral Coronavirus Carrier Strike Group, which was decommissioned in the early 2000s.
India and Singapore are in negotiations to buy the Gorshov from the state-run shipbuilder, the Indian Navy.
Mr Salim did not elaborate on what, if any, new roles the ship might have in the new Indian Navy or how much the ship is worth.
The Gorshova was originally built in 1965 for the Soviet Union as the first nuclear-power nuclear submarine, and was later sold to Singapore.
Its last operational mission was in 2007.
“The Gorskova will become an integral part of the Indo-Asia Pacific defence alliance,” Mr Salom said.
“The Navy is a crucial part of this alliance, and we are looking forward to a strong, stable, and prosperous Indo-Pacific.”
Mr Mohd told the Australian Broadcasting Corporation that the Gorskov would also be used for training and training exercises.
He said Singapore would have a naval shipyard in the country, but did not specify what type of ship it would be.
Asked about India’s concerns about the ship, Mr Mohd said: “This is not an issue that is being discussed.
I think we are working together on a plan, we will talk about it in the coming days.
However, we have no issue with any foreign country acquiring a nuclear weapon ship.”
Prime Minister Narendra Modi said on Friday he had assured Singapore that Singapore would not buy the Admiral and would not allow it to be used to threaten Australia.
A source familiar with the Singaporean military said Singapore’s naval chief, Admiral Lee Kuan Yew, told Defence Minister Tan Sri Salim on Friday that Singapore was prepared to sell the Gorsvos to India for as much as $8 billion.
But Mr Salims statement did not address whether Singapore might buy more, the source said.
Singapore is the world’s fifth largest military spender, spending more than $300 billion in military equipment in the last decade.