After a three-year long renegotiation, the fresh price of Admiral Gorshkov aircraft carrier was on Wednesday finalised at $ 2.35 billion by the government, a day ahead of Russian Prime Minister Vladimir Putin’s two-day visit to India.

India and Russia have reached a broad agreement to break the logjam over the protracted price renegotiation over Admiral Gorshkov aircraft carrier, and the two sides are also expected to sign a landmark civil nuclear pact on Monday.

Calling Defence cooperation a "key pillar" in Indo-Russian relations, Prime Minister Manmohan Singh on Friday voiced confidence that the two countries will find "practical solutions" to the problems dogging the Admiral Gorshkov aircraft carrier deal.

Under attack from CAG for the escalating cost of second-hand aircraft carrier Admiral Gorshkov bought from Russia, Navy Chief Admiral Sureesh Mehta on Thursday defended the price being paid by India for the warship.

Under the deal signed in 2004 the 44.5 thousand tonner Kiev class carrier will now be completed by 2011 for sea going trials and delivered in 2012 with the delay of four years.