Russia's latest nuclear-powered multipurpose attack submarine is too expensive for serial production and thus will probably be replaced with a less costly analogue, a Russian daily reported on Wednesday. The first Project 886 Yasen (Graney) class submarine, launched Tuesday in the northern city of Severodvinsk by Russian President Dmitry Medvedev, was initially scheduled to float out on May 7 celebrating the 65th anniversary of Victory Day if not for financial setbacks and technical glitches, said business daily Vedomosti. Although the price of the strategic project was kept secret, Vedomosti estimated the cost at around one billion U.S. dollars. Editor-in-chief of Moscow Defense Brief magazine, Mikhail Barabanov, citing comparable Sea Wolf submarines of the U.S. navy, told the paper that the Severodvinsk submarine's cost was too high for feasible serial production. Barabanov said the Russian Navy would instead probably replace the Severodvinsk with a more affordable alternative, such as the second Yasen (Graney) class submarine Kazan. Experts claim that the commissioning of the submarine can significantly increase combat capabilities of the Russian Navy. Such submarines were designed to launch a variety of long-range cruise missiles (up to 5,000 km) with nuclear warheads, and effectively engage submarines, surface warships and land-based targets. Medvedev said last September one of the most import issues for the Russian Armed Forces was to rebuild the Navy in the coming decade. He also said in March this year that the armed forces would undergo comprehensive rearmament beginning in 2011. 