Maybe they really mean arms.
Posted on 08/14/2002 10:31:52 AM PDT by Destro
Russia to repay S Korean debt with arms
REUTERS [ TUESDAY, AUGUST 13, 2002 12:30:17 PM ]
SEOUL: South Korea is likely to sign a deal next month to acquire Russian tanks, assault ships and other armaments in return for scrubbing part of at least $1.95 billion in debt owed by Moscow, defence ministry officials said on Tuesday.
The move is part of Seoul's efforts to retrieve loans extended to the former Soviet Union in 1991 to assist Russia's transformation into a market economy.
"I heard the deal is pretty close... and September sounds like a good timeline," said one defence ministry official, who asked not be named.
"Russia has not acknowledged the full amount yet... the finance ministry has to figure out the total amount of their debt by calculating the interest," he added.
It was not immediately clear how much the interest might amount to. The Russian embassy in Seoul could not immediately be contacted.
As of May, Russia owed about $1.95 billion in principal and interest to major South Korean banks.
Under the scheme, South Korea plans to pay about $267 million in cash -- half of the total arms purchase amount -- and for the remainder forgive part of the debt owed by Russia.
"If we can solve this thing well, then obviously we can have more military cooperation and mutual understanding, which could help us stabilise the Northeast Asian region," the official said.
South Korea remains technically at war with communist North Korea after the 1950-53 Korean conflict, having never signed a peace treaty. The former Soviet Union backed North Korea during the Cold War.
Seoul established diplomatic ties with the Soviet Union in 1990, one year before it collapsed.
Most of the aircraft and weapons systems used by the South Korean military are supplied by US manufacturers, and Russian weaponry traditionally comprises a fairly small proportion, the official said.
About 37,000 US troops are stationed in South Korea.
The latest deal with Moscow would include the purchase of Russian T-80 tanks, LCAC hovercraft assault ships, KA-32 transport helicopters, BMP-3 armoured vehicles and other military hardware, the official said.
A tentative agreement on this was finalised earlier this year following two years of talks and was also discussed during Russian Foreign Minister Igor Ivanov's visit to Seoul in July.
"Obviously they (Ivanov and South Korean officials) talked about this issue because the loan is overdue by at least 10 years," said the official.
The total of Soviet-era debt, mainly credits received from private Western lenders, is estimated to be around $42 billion.
Maybe they really mean arms.
The following is an interesting link (copy and paste):
http://www.freerepublic.com/focus/news/695515/posts
When you get there click on the other link at the top to Flight Journal for the original article.
Why would you want to buy/take in exchange arms which are clearly substandard?
Because they are better than the ones they already have. They currently field the M-48 (which rolled into service in the U.S in 1953!!) although it is upgraded, and the K1 (indigenous)whos competitors are the T-72 and Germany's Mark 3, they are developing a K1A1 but they have yet to start serial production of them and they are also having difficulty with the 120mm gun as opposed to the K1's 105 mm gun.
I've read that they already have T-80's but i'm unsure if this is true and in what quantity. Either way, the T-80 is more capable than any of their tanks they currently field. So while it is sub standard compared to the new stuff it is still capable.
As for the other equipment, I couldn't say. Still, they're aren't stupid and wouldn't take the equipment if it was crap.
At the end of 2001, the chairman of the Russian Audit Chamber (an independent parliamentary watchdog organization the controls the spending of budgetary funds), Sergei Stepashin disclosed that of the $3.7 billion Russia earned on arms exports in 2000, government coffers got only $7,000 .http://www.bu.edu/iscip/vol12/felgenhauer2.html
Ay yi yi!
If this is true then it is beyond corruption.
Hey Stavka, i know about the Oligarchs and the 'rule of seven bankers,' however can the oligarchs be this powerful (having the ability to skim 3.7 billion and leave only 7 grand)?
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