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Russia claims huge arms deal with Algeria

SPECIAL TO WORLD TRIBUNE.COM
Tuesday, March 14, 2006

MOSCOW — Russia has reported a record arms deal with Algeria.

Russian officials and executives said defense contracts worth billions of dollars were signed during the visit of President Vladimir Putin to Algeria on March 10. Algeria has not confirmed the contracts.

Rosoboronexport director-general Sergei Chemezov said Algeria has agreed to buy $7.5 billion worth of air and naval platforms, Middle East Newsline reported. Chemezov said Russia would also sell air defense and advanced technology to Algiers.

"The total figure of the contracts which we signed was for $7.5 billion," Chemezov said on Russian television. "Practically all types of weapons that we have are included — anti-missile systems, aviation, sea and land technology."

Chezemov did not provide details on individual contracts. He suggested that Algeria was drawn by the low price of the Russian systems.

"Russian technology is in no way inferior in quality to Western [technology]," Chezemov said. "But in price, it is 15-20 percent cheaper."

The largest element of the arms deal comprised Russian aircraft. The contract was said to have included both combat and trainer aircraft to Algeria.

"I'm not giving away any big secret when I say that we signed a significant series of contracts for Su-30MK, MiG-29SMT and Yak-130," RSK MiG managing-director Alexei Fedorov told Russian television. "All told, the contracts total more than $3.5 billion."

Russian officials termed Putin's visit to Algeria a success. They said Putin and Algerian President Abdelaziz Bouteflika met for five hours and discussed bilateral and regional issues.

But the two countries did not announce any defense or energy contracts. Instead, Putin aide Sergei Prikhodko said Algeria remained prepared to purchase aircraft, air defense systems and naval platforms as well as upgrades from Russia.

Last week, Russian newspapers said Moscow intended to sell to Algeria 40 MiG-29SMT Fulcrum fighters, 20 Su-30MK Flanker fighters, 16 Yak-130 Mitten jet trainers, eight battalions of S-300 PMU2 Favorite air and missile defense systems and 40 T-90 main battle tanks. Over the last two years, Russian industry sources had several times claimed a breakthrough in efforts to sign a huge arms deal with Algeria.

During Putin's visit, the two countries announced that Russia has forgiven Algeria's debt to Moscow. Russian officials said the write-off included all Algerian debt until Feb. 1, 2006.

Algerian state radio said Algeria would purchase goods and services from Moscow for the value of the debt. Moscow said the debt, which includes military sales in the 1960s and 1970s, amounted to $4.74 billion, while Algeria was reported to have determined that it owed only $200 million.

"Algerian debt was one of the main problems at talks between Bouteflika and Putin, who is making an official visit to Algeria," the Moscow-based Itar-Tass news agency reported on March 10. "Expert assessments put the debt at around $4.5 billion."

During Putin's visit, the official Algerian Press Service said the Russian delegation was to sign 14 contracts for energy prospecting and development in the North African state. APS said the contracts were worth a total of $1 billion.

Later, a member of Putin's delegation said more than $7 billion worth of contracts were signed in a range of fields. The official told the Interfax news agency that Algeria's debt to Moscow would be erased after the weapons deals were launched.

"The debt will be written off after the Algerian side signs and executes contracts for the purchase of Russian manufactured goods and military hardware," the official said. "The latest understanding in Algiers can be called a breakthrough, considering that for a long time this as well as many other debts resulting from the political decisions of the Soviet leadership were regarded as irrecoverable."


Copyright © 2006 East West Services, Inc.

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