ALGERIA REVIVES RUSSIAN DEFENSE FIRMS
MOSCOW — Huge orders by Algeria appear to have revived Russia's
aerospace industry.
Russian industry sources said the nation's leading aerospace companies
have been saved from financial crisis by the estimated $7.5 billion in
orders by Algeria. The sources said Algeria has pledged to procure virtually
every advanced Russian fighter-jet available for export.
"Had it not been for Algeria, the major aircraft contractors would have
faced a cash flow crisis in 2007," an industry source said.
The sources said President Vladimir Putin enabled Algeria to convert its
$4.5 billion debt to Moscow into arms deals. They said Libya, which also
also owes billions of dollars to the former Soviet Union, has been
approached with the same offer.
The Algerian military intends to procure the Su-30MKA, MiG-29SMT and
MiG-29UBT fighter jets. The air force also plans to acquire the Yak-130 air
trainer in deals that would provide sufficient orders for Russian
contractors through 2010.
The sources said Algeria would become one of the largest clients of
Russia. They said Algeria would account for 20 percent of Russia's defense
exports, equal to that of India. Only China, with 30 percent, would comprise
a larger military client of Russia.
The MiG deal with Algeria has revived Russia's ailing MiG Corp, the
sources said. They said MiG was threatened with a major crisis in the 1990s
and began to rebound in 2000 with contracts in such countries as Iran, Sudan
and Yemen.
"The Algerian orders have allowed MiG to develop and build advanced
fighters for the Russian Air Force, particularly the MiG-29K," the source
said.
The sources said Algeria has ordered 34 MiG-29SMTs as well as 28
Su-30MKA fighters -- meant for delivery through 2009. They said the two
contracts amount to $3.3 billion.
Algeria has also ordered 16 Yak-130 air trainers. The sources said that
over the last five years Algeria received 47 Mi-8MTV-1 and 42 Mi-171Sh
helicopters, 22 Su-24MK fighters and four Il-78 refueling aircraft from
Moscow.
