U.S./Russia: Arms Sanctions Threaten Business Ties

RFERL ^ | August 11, 2006 | Heather Maher

[sergey1973]

WASHINGTON, August 11, 2006 (RFE/RL) -- The U.S. State Department's August 4 announcement that it was imposing sanctions on the two Russian defense firms set off a firestorm in Moscow.

It also sent many U.S. enterprises running to review their Russian contracts.

The sanctions were leveled against a total of seven firms -- in Russia, North Korea, India, and Cuba -- for their dealings with Iran.

U.S. government agencies and private firms are facing a two-year block on working with any of the targeted companies on projects that could be interpreted as having a military function.

[sergey1973]

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[garbageseeker]

RusIvan would like to supply the worlds dictators with Russian made arms.

[GOP_1900AD]

Now we see the true face of anti patriotic, anti nation state businesses. If their own risk management people did not see something like this coming, then shame on them, and shame on the execs for not asking the difficult questions. It is indeed difficult to ask the sorts of questions that lead down paths that Thomas L. Friedmand and Francis Fukuyama would not approve of. There might be serious negative peer pressure involved. A courageous exec may actually have to take a cost hit in order to prevent a future disaster that is far more costly.

[sergey1973]

"A courageous exec may actually have to take a cost hit in order to prevent a future disaster that is far more costly."

Very good summary !

[Tai_Chung]

Blacklisting 2 Russian companies for 2 years because they were selling military arms with Iran should be a warning shot. No military sells occurs without government approval. If the Russian-Iran military relationship continues despite the blacklisting, we should consider economic sanctions against all of Russia.

Our large trade deficit with the world is a great bargaining chip. We should use it to help achieve our security objectives.

[RusIvan]

RusIvan would like to supply the worlds dictators with Russian made arms.==

Only if they are payable. No credit:). It is capitalism in work..

BTW did you check what country hold the 1st position in the world arms trades?:)

[garbageseeker]

I know. The USA. But you never gave me a straight answer on my inquires.

[RusIvan]

I know. The USA. But you never gave me a straight answer on my inquires.==

Yeah?:) What was that? About Scuds? Did you check who produced Scuds?

Russia sells arms but not Scuds.

[garbageseeker]

Leave me alone.

[RusIvan]

Leave me alone.==

OK but you stop talking about things in which you are absolutely ignorant.

[garbageseeker]

I will, but guess who is talking about ignorant things.Bye

[endthematrix]

Garbageseeker, you provoke RusIvan into the thread then demand to be left alone? C'mon now, that's some bad taste.

[garbageseeker]

Things gave stopped. Its all quiet.

[garbageseeker]

Things Have stopped. Its all quiet

[endthematrix]

10-4

[GarySpFc]

Boeing Russia boss says projects unaffected by U.S. sanctions
16:12 | 10/ 08/ 2006

MOSCOW, August 10 (RIA Novosti) - Sanctions imposed by the United States against two Russian companies will hardly affect deals with Russian titanium producers and a SuperJet project involving Boeing, the head of the U.S. giant in Russia said Thursday.

The U.S. State Department announced August 4 that two-year sanctions had been imposed on aircraft maker Sukhoi and arms exporter Rosoboronexport over their cooperation with Iran and alleged violations of non-proliferation commitments.

"We are continuing to study the legal aspects of the sanctions imposed by the U.S. government," said Sergei Kravchenko, president of Boeing-Russia/CIS.

The U.S. sanctions against Rosoboronexport might mean Boeing will face problems in relation to titanium supplies from Russia's Vsmpo-Avisma, whose controlling stake will be sold to Rosoboronexport in the near future. The multibillion-dollar contract between Boeing and the Urals-based company, which controls a third of the world's titanium market, should run for several years and plans for a joint venture were even mooted.

Kravchenko was upbeat, saying, "we believe Boeing's cooperation with Russian titanium producers and our joint work with Sukhoi Civil Aircraft on the SuperJet-100 program will be unaffected by the sanctions."

"Boeing will maintain close contacts with the U.S. Department of State ... to meet all the requirements of U.S. legislation while operating in Russia," he said.

Kravchenko said last month the U.S. giant's ambitious Boeing 787 Dreamliner project could be called a joint project with Russia as titanium parts would account for 20% of the plane's take-off weight and its titanium frame and parts would be made by Vsmpo-Avisma.

Sukhoi's ambitious project to build the Russian Regional Jet, renamed the Sukhoi SuperJet-100 recently, has been implemented in cooperation with Boeing and a series of other foreign companies. The RRJ market until 2023 is estimated at 5,400-5,600 units, and is valued at $100 billion.