Argentina’s Scorpène submarine plan remains stalled as financing talks drag on

Argentina’s plan to acquire three French Scorpène-class submarines remains stalled, as negotiations hinge on securing French-backed financing, an indispensable prerequisite before any contract can be finalised.

Speaking with Infobae on November 27, Laurent Mourre, Naval Group’s Director of Sales for Strategic Countries, confirmed that discussions have not advanced because a state-guaranteed financial loan has yet to be arranged. Without agreement on loan terms acceptable to lenders familiar with Argentina’s risk profile, no binding deal can proceed, according to Army Recogntiion. 

The delay directly affects the Argentine government’s ambition to rebuild its submarine force, which has lacked an operational unit since the tragic loss of ARA San Juan in 2017. President Javier Milei’s November 2025 political decision to select France as the supplier immediately triggered diplomatic activity: Argentina’s ambassador in Paris, Ian Sielecki, urgently requested a meeting with Defence Minister Luis Petri, as the submarine purchase had not been on the agenda at the time.

The choice followed a 2024 Letter of Intent signed in France by Petri and Admiral Carlos Allievi, launching formal talks for three units based on Brazil’s Riachuelo variant of the Scorpène family.

Recent Scorpène contracts are valued above $700 million per unit, aligning with Argentina’s estimated $2.3 billion package for three boats, including support and services.

Argentina has already allocated a $2.31 billion multi-year credit request under “Submarine Capacity Recovery” in its proposed 2025 budget. Mourre declined to discuss specific prices, noting that final figures depend heavily on the level of customization relative to a standard Scorpène—modifications that can substantially raise or reduce costs.

Financing remains the core bottleneck. Argentina cannot pay upfront and must rely on external credit. Naval Group does not issue sovereign loans; instead, export finance mechanisms—bank loans guaranteed by the French state—are standard. Such guarantees, however, are not automatic and require lenders comfortable with Argentina’s economic track record, particularly regarding the roughly 15% down payment. Argentina is seeking unusually favorable repayment terms of six to seven years, which local media describe as unprecedented if achieved.

Industrial participation options further complicate negotiations. Naval Group has proposed alternatives ranging from full construction in France to local production at shipyards like Tandanor.

Domestic construction would require major investment to meet submarine-building standards, similar to Brazil’s decade-long PROSUB effort and the creation of the Itaguaí Naval Complex. A fully French-built approach—currently expected for Scorpène Evolved units—would shorten timelines, reduce upfront costs, and still allow Argentina to rebuild technical expertise through maintenance, mid-life overhauls, and training systems.

The configuration under discussion mirrors the Brazilian Riachuelo-class, a 71.6-meter, 1,870-tonne diesel-electric submarine capable of 70-day deployments and armed with 533 mm torpedoes, mines, and cruise missiles such as SM39 Exocet or Harpoon. Argentina intends to incorporate lithium-ion batteries and Scorpène Evolved technologies, aiming for improved submerged endurance beyond 78 days and availability exceeding 240 days per year.

By Sabina Mammadli