http://www.geostrategy-direct.com

Late sales to Iran, Algeria put Russian arms exports over $6 billion
in 2005 

MOSCOW — Russia has reported a new arms export record. 
Russian Defense Minister Sergei Ivanov said Moscow sold $6 billion
worth of weapons in 2005, a $500 million increase from the previous year. 
Ivanov said the Russian backlog of orders also increased in 2005. It
included orders for mid-term projects for several foreign clients. 
"The general volume of orders comes to $22 billion at the moment,
which means our industry has serious orders for the next few years,"
Ivanov said on Jan. 18. 
The arms export figure for 2005 was released after Ivanov briefed
President Vladimir Putin. The figure was far higher than expected by
Russian officials and analysts. 

In November 2005, officials from Rosoboronexport assessed that Russian
arms exports would decline to about $5 billion. They cited Moscow's
failure to conclude major arms deals with East Asia.
 
Over the past month, Moscow reached an estimated $1 billion deal for
the sale of anti-aircraft systems and other equipment to Iran. Russia
also concluded arms deals with other Middle East states, including
Algeria and Syria. 
Putin plans to visit Algeria in March for the possible signing of a $3
billion weapons deal. 

Officials said Putin has accepted an invitation to visit Algiers and
plans to sign the agreement to sell aircraft and other systems to the
North African state. Putin would also write off a large part of the
estimated $4.5 billion Algerian debt to Moscow. 
"Putin will not travel anywhere without a firm commitment that the
deal has been sealed," an official said. 

Officials said Algeria plans to purchase the Su-30MKI fighter, the
MiG-29SMT/UBT fighter and the S-300PMU long-range anti-aircraft
system. A signing in Algiers would conclude three years of
negotiations between Algiers and Moscow. 

Details of the expected contract remain unclear. But industry sources
said Algeria could order 40 MiG-29SMTs and twin-seat UBTs with an
option for another 30. 

The sources said the MiG-20 deal could amount to nearly $1.5 billion. 
The deal would include the return of aging MiG fighters to Russia.
Algeria was also expected to purchase about 25 Su-30MKI fighters. The
sources said the deal could contain several stages, with an initial
order of 12 Sukhois. 


Algeria has lost interest in ordering the new MiG-AT advanced jet
trainer, developed in cooperation with EADS. Algeria has been
negotiating for the Yak-130 trainer as well as additional Su-24MK
aircraft and missile frigates. 

Russia also plans to sell Algeria eight S-300PMU systems, sources
said. The S-300 is capable of both air and missile defense and would
be the first introduction of the system in the Arab world. 

Algeria renewed military cooperation with Russia by ordering an
upgrade of 22 Su-24s in 2002. Sources said 15 aircraft were modernized
and Russia has exported another seven surplus Sukhois to Algeria. 






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