Russia prosecutes firms that sold aging jet fighters to Algeria
MOSCOW — Russia is prosecuting executives at a company that
torpedoed a $1.3 billion deal to supply advanced MiG-29 fighter-jets to
Algeria.
Officials said Russian prosecutors have drafted an indictment against at
least two senior executives of Aviaremsnab, a key supplier in the MiG
project. The indictment charges the executives with providing obsolete
systems for the MiG-29SMT fighters sold to and rejected by Algeria in 2007.
"This [indictment] is meant to warn businesses that they must honor
their contracts, faithfully," an official said.
In May 2009, Aviaremsnab chief executive officer Musail Ismailov and his
deputy, Alexander Kutumov, were convicted of selling aging systems to the
MiG Corps. for the MiG-SMT for Algeria. The two executives were convicted of
fraud in the $14.3 million contract, including forging certificates that
designated old and obsolete equipment as new.
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In 2006, Algeria ordered 28 one-seat MiG-29SMT fighters and six two-seat
MiG-29UB combat trainers to Algeria as part of an $8 billion military
cooperation agreement with the North African state. A year later, the
Algerian Air Force rejected the MiGs, saying they contained parts and
systems as old as 1982 and that the aircraft fell short of military
requirements.
Officials said Aviaremsnab also sold aging parts to the Polish Air
Force. They said the state-owned arms agency Rosoboronexport and MiG
detected the aging parts before they were installed on the MiGs for Poland.
In April 2009, the MiGs exported to Algeria were returned and absorbed
by the Russian Air Force. The MiG-29SMT, an upgrade of the heritage of the
MiG-29, was said to comprise a three-fold increase in effectiveness and a 40
percent decline in operating costs.
Another Russian company involved in the Algerian MiG-29SMT deal was the
Moscow-based missile producer Dux. Dux has been sued by Rosoboronexport for
$15 million to compensate for the export of what was regarded as inferior
missiles to Algeria. A hearing was scheduled for Oct. 5.