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Wealthy Middle East states saved struggling Russian defense firms

SPECIAL TO WORLD TRIBUNE.COM
Tuesday, January 17, 2006

TEL AVIV — The Jaffee Center for Strategic Studies reported that Russian arms exports to the Middle East have increased at a faster rate than other suppliers. The center, part of Tel Aviv University, said that in 2003, Russia sold nearly $1.5 billion to the region.

"Since 2000, the Middle East has accounted for 18 percent of Russian arms exports and Russia sees the region as an important market for arms and nuclear equipment, one that it is determined to retain," the report said.

Entitled "The Russian Arms Exports and Arms Exports to the Middle East," the report said the Russian arms industry has become a vital source of foreign economic exchange, and since 2002 exports to Algeria, Iran, Saudi Arabia and Syria have risen sharply. Authored by Paul Rivlin, the report said arms exports have also ensured the financing of defense industries threatened with closure, Middle East Newsline reported.

"The Persian Gulf is also a Russian priority because the oil-rich states have the ability to pay," the report said. "Moscow has sought, though not always successfully, to balance its policy among Iran, Iraq, and the Gulf Cooperation Council states. Given the limited range of products -- both military and civilian -- that Russia has to offer, the GCC has not proven to be a large market."

The United Arab Emirates has been a major client of Russia's arms industry. The report said the UAE bought $1.8 billion of Russian military equipment from 1992 to 2003. Iran and Algeria were said to have ordered $3.7 billion and $2.3 billion of Russian weaponry.

"Russia will continue to export nuclear material and conventional weapons to Iran as long as the political and economic price in the West is not too high," the report said. "Relevant decisions will be made at the highest level in Russia."

The report said Russia has maintained defense and military cooperation with Israel. But Rivlin said cooperation has been limited by Russia's determination to sell nuclear material to Iran and weapons to Syria.

"Russia has shown some sensitivity to Israeli concerns, suggesting that the missiles it plans to sell to Syria will not be of the kind that can be used by Hizbullah in Lebanon, but it is far from clear that these reassurances have satisfied Israel," the report said. "President Putin's April 2005 visit to Israel, the first ever by a Russian head of state, underlined the importance that Russia attaches to maintaining ties with Israel while it continues its arms sales policies elsewhere in the Middle East."


Copyright © 2006 East West Services, Inc.

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