JAKARTA, August 11 (RIA Novosti) - Russia has been shortlisted for a $700 million contract to deliver two submarines to Indonesia, the Indonesian Navy commander said on Tuesday.

"Of the four bidders for the submarines, Russia and South Korea have reached the final round, passing France and Germany," Admiral Tedjo Edhy Purdijatno said.

Russia's bid is the Project 636 diesel-electric submarine (export agent Rosoboronexport) while South Korea's is the U-209 sub manufactured by Daewoo Shipbuilding and Marine Engineering under German license.

"One of the principal conditions [of the contract] is, among other things, the transfer of technology," Purdijatno said.

The successful bidder is expected to be named by the end of August.

The Indonesian defense minister has said the submarines are to be delivered in 2011.