United Press International,
MOSCOW: A landmark event in Russian aircraft-making — the promotion of MiG CEO Alexei Fedorov to Director General of the United Aircraft Corporation, the new national champion — came shortly before a huge arms deal with Algeria.
The high-level Russian delegation in Algeria signed $7.5 billion's worth of arms trade contracts under which Russia will supply a fleet of multi-role fighters — 36 light MiG-29SMT Fulcrums and 28 heavy Su-30MKA Flankers — and 16 Yak-130 Mitten combat trainers, all worth around $3.5 billion. Additional programs include upgrade of 36 older Fulcrums, supplies of missiles and ground-based radars, and pilot and technician training. This series of contracts is going to be a tough test for the UAC, its new CEO and companies bound to become its units — Sukhoi, MiG, and Irkut Corporation.
Interestingly, Fedorov, who had come to MiG from Irkut and, accordingly, at different times had pushed for Flankers from Irkut and Fulcrums from MiG in talks with the Algerians, this time was not restricted by in-house rivalry and got, in his new capacity, a brilliant chance to show his real management skills and national champion's efficiency as both Sukhois and MiGs are currently on the table.
There is little doubt that the Russians are ready for the Algerian deal technologically: both multi-role fighters have been in operation for some time, for both there is backup production capacity: the Su-30s is produced by Irkut in Irkutsk and KNAAPO in Komsomolsk-on-Amur, and the MiG-29SMTs by RSK MiG in Lukhovitsy in the Moscow region and Sokol in Nizhny Novgorod. The Mitten is still being tested, and commercial production will surely take additional time and effort, but this is highly unlikely to affect the four-year contract.
At first, questions arose on whether the Algerians were ready for the contract financially. The deals were signed only after Russia agreed to write off $4 billion in Algeria's bilateral debt. But if there was no money to pay the debt, the natural question arose, how Algiers was going to pay for the aircraft which, according to Sergei Chemezov, CEO of the Russian state arms exporter Rosoboronexport, would be delivered only upon bank transfer?
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