(Bloomberg) -- Prime Minister Rishi Sunak said the UK will award a £4.2 billion ($4.9 billion) contract to BAE Systems Plc to build five more ships for the Royal Navy, in the face of increased Russian threats. 

The contract adds five more Type 26 frigates to the three already under construction. The ships will conduct anti-submarine missions while supporting air defense and other operations. 

“Russia’s actions put all of us at risk,” Sunak said as he attended the G-20 group of industrialized nations in Bali, Indonesia. “As we give the Ukrainian people the support they need, we are also harnessing the breadth and depth of UK expertise to protect ourselves and our allies. This includes building the next generation of British warships.”

Last week Russia tried and failed to test its pioneering torpedo, according to reports citing American intelligence officials. The Poseidon nuclear-powered torpedo was launched from the world’s largest submarine, the Belgorod, which went into service a few months ago. On Thursday, CNN reported the US had observed the ship leaving the testing area in the Arctic Sea, and returning to port without carrying out the trial.

Meanwhile, Sunak confirmed he will abandon the pledge from his predecessor Liz Truss to increase the defense budget to 3% of national income by 2030. Speaking to reporters on his way to the G-20 summit of industrialized nations in Bali, Sunak said the UK is one of the few countries to meet Nato’s target of 2%. 

He also ruled out keeping defense spending in line with the UK’s double-digit inflation statistics, setting himself up for a clash with some of his rank and file Conservative MPs.

The frigate project will support 1,700 jobs at BAE sites in Glasgow, Scotland over the next decade. Another 2,300 additional jobs will be supported in the supply chain across the UK, Sunak’s office said in a statement.

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