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January 14, 2002:    #6021

#5
Russia about to displace France from top three arms exporters
Interfax

Moscow, 11 January: Judging by 2001's results, Russia may rise to third place among arms exporting countries after the United States and Britain, leaving France behind, expert from the CAST think tank Maksim Pyadushkin has told Interfax.

Foreign currency proceeds for exports of Russian arms and military technologies amounted to 4.4bn dollars in 2001 which is a record figure for Russia, he said. In 2000, they were 2.84bn dollars.

Pyadushkin quoted preliminary estimates as saying that in 2001 Russian arms deliveries were worth 3.6bn dollars, down from 3.68bn in 2000.

He said that the share of Rosoboroneksport in overall deliveries is estimated at 3.2bn dollars and in foreign currency proceeds at about 4bn.

According to Pyadushkin, last year Rosoboroneksport delivered some 30 Su-30MKK fighter-bombers and 10 Su-27UB trainers to China, a batch of Su-24 front-line bombers to Algeria, over 40 T-90 tanks to India, one Zubr hover landing craft to Greece. It also upgraded a submarine of the Kilo class for the Indian Navy.

The Russian aircraft-making corporation MiG, which has the right to conduct independent foreign trade deals, delivered military hardware worth 150-200m dollars in 2001, up from 100m in 2000. Pyadushkin said it delivered MiG-29 air superiority fighters to Eritrea, Burma and Yemen.

The Antey concern, another major arms trader, delivered four Tor-M1 (SA-15) short-range surface-to-air missiles to Greece. Its overall exports are estimated at 150m dollars, the expert added.

The foreign currency proceeds of the Tula-based Instrument Building Design Bureau in 2001 barely exceeded 100m dollars. This money came from the United Arab Emirates under a 2000 contract for the Pantsyr-S1 wheeled air defence missile/gun system.

The Reutov-based Machine-Building Research and Production Association is believed to have made 30-40m dollars in 2001 under the BrahMos joint project with India to develop supersonic anti-ship cruise missiles, Pyadushkin said.

During 2001 the Kolomna Machine-Building Design Bureau also earned about 30-40m dollars in the framework of a 2000 deal for the delivery of several hundred Igla portable surface-to-air missiles (SA-18 Grouse), he said.

Pyadushkin said that in the next few years Russian foreign currency proceeds from arms trade may be crippled by the US policy of lifting restrictions on arms deliveries to several countries, including India and Yugoslavia, which are traditional importers of Russian military goods.

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January 14, 2002:    #6021

 

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