SinoDefence Forum

adeptitus

This purchase could bump Algeria to a major purchaser of Russian arms in 2006, possibly even exceeding PRC or India in USD $ for the year (only). Also, if Algeria does purchase 50 Yak-130's, it'd be Russia's first successful export of this new trainer aircraft:

http://www.defenseindustrydaily.com/...index.php#more

Russia & Algeria Nearing $4+ Bn Arms Deal
Posted 01-Feb-2006 13:20

The Moscow Times reports that Russia's state arms trader Rosoboronexport and leading Russian defense industry enterprises have prepared a package of $4 billion package of contracts to sell advanced weapons and military hardware to Algeria. "Work to draw up the package is nearly over. All contracts have been negotiated and some initialed, and they are likely to be signed in February 2006," a source in the Russian defense industry told Interfax-Military News Agency. This would be post-Soviet Russia's largest ever single arms deal, and compares to annual weapons exports to all customers of $5-6 billion over the last couple of years.

Weapons rumored to be on this list include 36 upgraded MiG-29SMT multi-role lightweight fighters and 28 two-seat Su-30MK fighters, eight sets of Russia's advanced S-300MPU2 Favorit (upgraded S-300) air defense missile systems with a 200km range, and T-90 main battle tanks. Interfax's source noted that the weapons would be paid for in a complicated scheme involving striking off part of Algeria's Soviet debt. Other contracts are also rumored for the upgrade of Soviet-made arms already in Algeria's possession, and additional arms are reported to be under consideration. For instance...

Recent reports have included rumours that Algeria may pursue a separate deal for up to 50 Yak-130 advanced trainer and light attack planes to complement/ replace its older L-39 ZA Albatros aircraft from Czechoslovakia. The country is also reportedly shopping for about 30 Tunguska-M1 mobile gun & missile systems for low-level air defense and light fire support. Algeria's neighbor Morocco signed a December 2004 contract for 12 Tunguska systems.

Algeria's Appetite for Advanced Arms

This level of advanced equipment is not altogether surprising. Algeria had been a client for Soviet arms throughout the Cold War, and country data notes that they typically received and operated some of Russia's most advanced export equipment. The ANP was one of the first armies outside Eastern Europe to be equipped with the T-72 tank. Algeria also received the BMP-1 and BMP-2 infantry fighting vehicles, MiG-23 Flogger and MiG-25 Foxbat fighters, Mi-24 Hind attack helicopters, modern rapid-firing artillery, and SA-2 and SA-3 air defense missile sysytems.

In 1999, Algerian President Abdel Aziz Boutefliqa announced a new military policy aimed at modernizing Algeria's army and shifting it toward a modernized, professional force. These efforts also fall within the context of an extremely bitter and bloody war against the Wahhabist al-Qaeda affiliate GSPC, along with other Islamist terrorist groups.

Algeria currently flies the lightweight MiG-29 Fulcrum fighter, and UPI notes that Algeria received 18 SU-30MK multi-role fighters in 2005, along with a $120 million deal for 22 of Russia's SU-24 Fencer tactical bombers that proved so popular in Chechnya.

In many ways, therefore, this purchasing wave is simply a continuation of what Algeria's military government is used to. Even so, there is one important way in which this proposed deal would represent a break with the recent past.

Moscow Defense Brief magazine editor Ruslan Pukhov noted to The Moscow Times that after the Soviet Union's breakup, Algeria's military contracts largely switched to firms in Belarus and the Ukraine. We'd add that rather than dealing with Russian firms, Algeria even worked closely with South Africa's ATE Aerospace to upgrade its Mi-24 Hind attack helicopters with new avionics, sensors, weapons, and logistics infrastructure. the result was the fully-modernized "Mi-24 Superhind Mk3".

"This [$4 billion] contract will be Russia's triumphant return to North Africa," said Pukhov. "In the coming years, Algeria will account for 20% of Russian's arms exports, while China and India will plummet from 70% to 50%" as a result of saturated markets and diversification of those countries' arms sources.

FreeAsia2000

Plus it will be used to provide plenty of kickbacks to the military junta.

I don't think algeria needs these arms.

f2000

wow...
great deal!
wat make them shopping too much
fighting terrorist?

tphuang

it makes me wonder how Algeria can afford this?

$4 billion?

that's operating both mig-29 and su-27. Other than IAF and the Russians themselves, I guess Algeria is the only such air force.

bangladesh

where are they going to get the 4$ billions

i really dont get it why waste money in weapons
they dont have any threat

and by the way the situation in algeria is not good specially in FOOD

i was there even in had work hard to buy the food then

i was a kid

FuManChu

Indeed, this is a very inappropriate purchase given the poverty in the country. There is no threat that I can imagine (especially the kind that can't be resolved through diplomacy) that would require this purchase, so why such a big spend?

__________________
"Japan is as much of a threat to China, as China is to Japan."

--FuManChu

Fairthought

Algeria can afford this, no prob. In fact, alot of petroleum exporting countries have recently found themselves with an unexpected surplus of several billion dollars each.

I predicted this four weeks ago: http://www.sinodefenceforum.com/show...3030#post23030

This is only one of many super-arms deals that are taking place. Venezeula, Iran, Libya, and Saudi Arabia all have multi-billion dollar deals on the table. Many of these countries have better things to do with their money (transportation, educational, and agricultural infrastructure, for example). But Iran really needs the weapons, there's little doubt their going to get attacked soon.

f2000

i think they can afford this.
maybe they want to have armament that can give them good deterrent
againt their enemies.who knows?

FuManChu

What enemies would that be? I seriously want to know. Is the whole of Africa paranoid of their neighbours or something?

I wonder how much of Algeria's natural resources money goes into public services.....

__________________
"Japan is as much of a threat to China, as China is to Japan."

--FuManChu

Panzer

I think Algeria has decided to buy russian arms only because the main seller of its neighbour Egypt is the USA. And the relations between Algeria and Egypt are friendly only from the first sight. Also Libia plans to sign big contracts to purchase advanced weapons from european countries. Except for that most part of previous delivered weapon was Soviet/Russian, that's why Algeria has got an experience in supplying Soviet/Russian weapon.

Baibar of Jalat

Its officially been signed.

http://www.arabnews.com/?page=6&sect...=11&m=3&y=2006

Russia Writes Off $4.74 Billion of Algeria’s Debt
Guy Faulconbridge & Hamid Ould Ahmed, Reuters

MOSCOW/ALGIERS, 11 March 2006 — Algeria has agreed to buy $7.5 billion worth of combat planes, air-defense systems and other arms from Russia, the head of Russia’s state arms exporter Rosoboronexport said yesterday.

Russia also agreed to write off $4.74 billion of Algeria’s Soviet-era debt during a visit by President Vladimir Putin to the North African oil-exporting country, the first by a Russian leader in half a century.

“The total figure of the contracts which we signed was for $7.5 billion,” Rosoboronexport chief Sergei Chemezov said in comments shown on Russian state television. It was unclear when the arms would be delivered.

“Practically all types of arms which we have are included, anti-missile systems, aviation, sea and land technology,” he said. “Russian technology is in no way inferior in quality to western (technology) but in price it is 15-20 percent cheaper.” Russia, one of the world’s leading arms exporters with annual sales of more than $5 billion, is seeking to boost arms sales by widening its client base. Most of Russian arms export currently goes to China, India and Southeast Asian states.

Algeria will buy 40 MiG-29 fighters, 20 Sukhoi-30 fighters, 16 Yak-130 training planes as well as 8 S-300 PMU2 Favorit rocket systems and about 40 tanks, the Itar-Tass news agency reported.

A one-on-one meeting between Putin and Algerian President Abdelaziz Bouteflika, scheduled to last for one hour, went on for more than 5 hours, Russia’s NTV television reported.

Algerian state radio confirmed the debt write-off and said the country would spend the same amount in return on buying goods and services from Russia, without mentioning the arms deal.

Putin is keen to restore Russia’s role as a global diplomatic heavyweight and boost its standing in the Arab world.

The two countries, both big gas suppliers, were also expected to sign an energy deal involving Algerian state oil and gas company Sonatrach and Russia’s Gazprom and Lukoil.

Gazprom head Alexei Miller, who was accompanying Putin, said yesterday his company and Sonatrach would seek to boost gas cooperation including liquefying gas for tanker shipments.

Moscow is seeking to benefit from huge investment opportunities in Algeria, whose trade exchanges with Russia were no more than $364 million last year against $8 billion with the United States.

Algeria, an OPEC member, is implementing an ambitious $80 billion five-year program billion aimed at boosting growth and drawing more investments as it recovers from a decade-long civil war.

ArjunMk1

S-300, Flankers and T-90 will be great , but does Algeria faces any serious threat ???

Indianfighter

Russia-Algeria defence deal may benefit India

Vladimir Radyuhin

Moscow may source from India some components for jet fighters Algiers is buying

MOSCOW: India may get a share of a multi-billion defence package Russia has sealed with Algeria for the supply of combat aircraft, defence industry sources said.

Russian aircraft manufacturers may source from India some key components for a large batch of jet fighters Algeria is buying from Russia, the sources said.
Under a record $7.5-billion defence package announced during Russian President Vladimir Putin's visit to Algiers on Friday, Russia will supply 28 Su-30 multi-role, long-range fighter planes, 49 multi-role MiG-29SMT fighters, 20 Yak-130 advanced jet trainers, as well as air-defence systems and tanks.

``Algeria wants its Su-30 to closely match the Su-30MKI version India has procured from Russia,'' the sources told The Hindu. ``The Su-30MKI has some Indian-made avionics and other parts, therefore Indian companies may be contracted to supply the same components for Algeria.''

India, which is building 140 Su-30MKI under Russian licence, is also involved in the manufacture of avionics and airframe parts for Su-30MKM jets Malaysia has purchased from Russia.

Russian experts said the Algerian contacts are improving Russia's chances of winning the tender for the supply of 126 multi-role combat aircraft to the IAF.

Russia has fielded its latest MiG-35 fighter plane in the Indian tender.

``The contract for the supply of four dozen MiG-29SMT planes to Algeria has propelled the MiG corporation to the top position among Russia's aircraft manufacturers and has sharply consolidated the company's financial standing ahead of the Indian tender,'' said Mr. Dmitry Vasiliev of the Centre for Analysis of Strategies and Technologies.

The MiG-35 (export name of the MiG-29M/M2 version), powered by an innovative thrust vectoring engine, RD-33OVT, will compete for the Indian contract against Lockheed Martin's F16, and SAAB's Gripen.

Source:
http://www.bharat-rakshak.com/NEWS/n...hp?newsid=5703

IDonT

Says everything. Russia has become a very good sales man.

Egypt and Algeria are not direct neighbors. Libya is in between them. Algeria is directly south of France across the Med.

As with most of the third world, this weapons are just for show and reputation. It is really sad, $7.5 billion could be better spent on infrastructure.

Baibar of Jalat

Orig Argun
Apart from deminishing insurgency the only overt disagreement is with Morroco over Western Sahara. Algeria supports W. Sahara independence but personally at the present political situation v.unlikely for the possibility of war.

To IDonT or anyone how long do you think contract would last for? If it is a long term contract then cost might not be to much of a problem for algeria.

Read this http://news.bbc.co.uk/1/hi/world/africa/4796382.stm