Posted on 02/09/2005 4:29:17 PM PST by Tailgunner Joe
Moscow is preparing its first major defense contract with Saudi Arabia, the world's largest arms buyer that has traditionally spent its petrodollars on U.S.-made weapons.
The deal is part of a strategy aimed at diversifying Russia's arms buyers away from China and India, Sergei Chemezov, general director of state-owned arms exporter Rosoboronexport, told reporters Wednesday.
Russia also signed an arms contract with Morocco last month, he said, the first since the breakup of the Soviet Union.
Chemezov refused to give any details, but said that Russia is stepping up negotiations with Middle Eastern countries for jointly developing air defense systems on the basis of the domestically produced S-300, Buk and Tor-M1 systems.
"If a contract with Saudi Arabia is signed, it will be a landmark event in Russian arms exporting," said Marat Kenzhetayev, an expert with the Center for Arms Control.
From 1991 to 2002, Saudi Arabia imported $93 billion worth of weapons, Kenzhetayev said, while Morocco imported $1 billion.
In that same period of time, Riyadh signed $40 billion worth of arms contracts, of which $28 billion flowed to the United States and not a penny went to Russia, he said.
After U.S.-Saudi relations dampened following the Sept. 11, 2001, terrorist attacks, the situation now seems to be swinging in Russia's favor, Kenzhetayev said.
While Moscow already sells arms to Middle Eastern countries such as the United Arab Emirates, Yemen, Iran, Kuwait and Algeria, a deal with the Saudis could push its neighbors Jordan and Oman to sign Russian contracts as well, Kenzhetayev said.
For Moscow, which sells arms to 59 countries, finding new customers is important as it tries to diversify away from major clients China and India, which account for 80 percent of Russian arms sales.
"We have reached the ceiling of $5 billion to $6 billion in annual arms sales abroad," Chemezov said. "We have to change something drastically."
Last year, Rosoboronexport, which mediates over 90 percent of the country's arms deals, delivered $5.1 billion worth of arms out of $5.8 billion exported by Russia as a whole.
Rosoboronexport has orders of $12 billion through 2007, but Chemezov said that this year Rosoboronexport can expect to make $1 billion less in revenues.
"The reason? Our companies cannot produce more modern weapons. [The industry] is in need of investment either from private companies or from the state," he said. "Today we sell weapons that were designed in the late 1970s and early 1980s."
Rosoboronexport plans to boost control over defense production by placing its directors on the boards of arms makers and buying stakes, Chemezov said.
Chemezov said that all sales are strictly in line with international agreements and do not violate any United Nations sanctions.
"However, if some country, including the United States, makes its own decision [on sanctions], pardon us, we are not obliged to do as America says," Chemezov said.
Last month, Israel and the United States expressed concern about the possible sale of SA-18 surface-to-air missiles to Syria.
Asked whether any such contract was discussed during Syrian President Bashar Assad's recent visit or is planned, Chemezov said: "No."
Their main enemy IS Iran.
Russia and France have a lot in common as far as the world stage is concerned. They both had it pretty good for a while (or so they thought), but now they're past it because they can't give up their spent government models. They're both worried about recapturing their former glory and will do anything to grab the attention of other powers provided it's A) a quick and easy way to make money, B) futile, C) insane, or D) just plain stupid.
"Something is coming."
1. Might not happen.
2. Russia wants to make money.
3. Might be a "scratch my back" deal to dampen Russian oil exports.
Their main enemy IS Iran.
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I would not bet my life on that...even if appearances might leave that impression...both Iran and SA have a common enemy -- DEMOCRACY.
Saudiland needs some kind of defense against Iranian aggression. Let both them and Syria bone up on defensive armaments.
Ping!
LOL!!!!! I love it!!!!
maybe they want to arm their mosques that they have here
Washing machines are machined to automotive tolerances.
Aircraft are built to much higher tolerances.
Everyone in the world knows American weapons are the best. I'd translate this article like this: Saudi Arabia is running out of money.
can ya blame them.........they've got very little besides oil, vodka potatoes and weaponry.......sad state of affairs
Arabs leaders WANT a weak military...it prevents potential coup attempts.
They spend billions on top quality armaments that rot in the sand.
They have nothing better to do with their money, and it gives them 'prestige.'
Its not a matter of appearances, its a matter of fact-with the exception of the U.S. in Iraq, Iran is the dominant military power in the Gulf, and the Gulf Arabs are worried about Iran's bid for regional supremacy. And democracy is not the Saudis' enemy because we aren't going to try to overturn the Saudi monarchy any time soon (until we limit our dependence on their oil). The internal elements opposing the Saudi regime are primarily Islamists and are not really interested in democracy either. SA is one of our biggest long-term foreign policy problems.
at least Iran is not two faced about it.....you never ever know who's side SA is on.....plus they and their Maddrasis (SP?) are the real long term problem
They loved the bars and strip joints in town, though.
We'd better do whatever we can to remain the Saudis' supplier...that way if anything happens, we can disable their weapons via remote control. (then again the Russian weapons will probably just disable themselves if ever used in a battle)
Evil incarnate dancing with the DEVIL and you thought all we had to worry about was "MESKINS" jumping the fence!
He should have done it anyway.
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