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."
The Saudis have never really needed a military, sinec they have always had ours, and they don't really have one now (besides ours). Their massive purchases of arms over the years have just been a way of cementing their relationship with the US, which made some sense when they were worried about Soviet-backed threats to their rule, or later Baathist and Iranian threats.
At this point, though, the only threat to their rule is from other Saudis, so there is little reason to court US protection.
When you think about it, though, what does a country with no military do with massive arms purchases? We have always said they buried it, stockpiled it, in the desert to be used by US brigades who might arrive in an emergency and be immediately supplied from Saudi stocks.
If its buried in the desert, though, who is to say it exists? Who is to say that the "arms purchases" weren't massive bribes which purchased American military protection. Or they were underwriting "off-the-books" enterprises that wouldn't show up in the official budget. It might be significant, then, if Saudi bribes were being diversified to include Moscow's ruling elite. It may simply be a way of expressing some pique, by reducing the payoffs to their former American friends.
I know, I'm crazy.
They loved the bars and strip joints in town, though.
If they're "devout" Muslims, that should have been a major tip-off that they're up to no good. It seems that Mohammed allows them to begin indulging a bit early if they're about to earn themselves 72 virgins.
Of course, if they're not "devout", it meant nothing.
They have spent billions on their military but I would bet the IAF would destroy ninety percent of their air force before they even got a plane airborne. As for the land forces...... Let 'em buy hardware from the Russians. They have neither the will to use it nor the capability to learn how.
My question to my fellow posters - where was the stink eye when we sold F-15 and main battle tanks to the premier jihad state of murderers? I think the Saudis will soon realize that its cheaper to buy off a US Senator - American politicians have integrity when it comes to tacking bribes.
What is happening is our girlfriend Saudi is making googly eyes at Ivan in the hopes it makes Sam jealous. PS: When should you be worried? When OPEC goes Euro and the Saudi's withdraw their money from American financial institutions (I think they account for a quarter of our economy).
I ask the same question...where's the outrage when we sell them advanced weapons systems?
You mean the Saudis? I just did.
Yes...the US has sold the Saudi's billions of $'s worth of advanced weapons systems...
I don't really care...as the things they buy tend to rust in the desert.
I'm still trying to figure out why we sold them AWACS two decades ago. I wouldn't trust that with anybody but the Brits or Israelis, and I'd hedge on the latter.
I find it very funny - they are thinking about buying some arms from Russia - people here go ape and apocalyptic - America sold the Saudis BILLIONS of arms over decades - Do as I say not as I do mentality I guess. Shame on us for selling the Saudis anything of value.
38 & 39
I could care less about the Saudis buying Russian hardware. But what I've never understood is the reason we gave them access to top-notch American stuff like the F-15 and M-1. And, like I said, I have no idea why they would have needed AWACS technology.
Yeah, we buy oil from them, but we can sell them second-hand stuff like the F-4 or F-16 and M-60. More than enough to handle the junk Saddam had in 1990 and two years ago.
Things don't rust in the desert. Desert is dry, things are stored, preserved in the desert. Check Arizona desert and the aircraft "parking lot" there. I've got 60 Cadillac from AZ to prove it, no rust.
Actually, the Saudi deserts near the coasts are extremely humid.
ANd, I'm talking about Arabs takikng care of their equipment, not Americans.
Arabs have a general disdain for "blue collar" work, that's why so much of their stuff is in a state of disrepair.
Where is Saddam Hussein when we need him?
Nuts.
I just wished the US and the Russians wouldn't work against each other till the end of the WOT. Yeah I know, the rose colored glasses need a new prescription.
This is Itar-Tass - which loves to load the news and Russophobes like Top take it and run with it.
The Saudi military couldn't even catch terrorists who were in a building thAt they had SURROUNDED.
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