Algerian Arms Deal Brings Russia $7.5 billion, Gas Market Leverage
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In an earlier Feb 1/06 report, DID noted that a $4 billion arms sale was brewing between Algeria and Russia involving fighter aircraft, tanks, and air defense systems, with the possibility of additional equipment. Those options would appear to have come through, as numerous sources are now reporting that a high-level Russian delegation in Algeria has closed $7.5 billion worth of arms contracts. The Algerian package would be post-Soviet Russia’s largest ever single arms deal, and compares to annual Russian weapons exports to all customers of $5-6 billion per year in 2004 and 2005.
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Reuters South Africa quotes Rosoboronexport chief Sergei Chemezov as saying that “Practically all types of arms which we have are included, anti-missile systems, aviation, sea and land technology.” The actual contents of that deal were murky, though DID offers triangulation among several sources to help sort out the confusion. The subsequent crash of Algeria’s MiG-29 deal, and its ripple effects, are also discussed. The latest addition is a report on some of the deliveries to date…
- Detailing the Deal: The Algerian Package [updated]
- Structuring the Deal: Anatomy of a Euro Squeeze Play
- Updates & Developments [updated]
- Appendix A: Algeria’s Appetite for Advanced Arms
- Appendix B: Russia’s Arms Industry Woes
- Appendix C: Additional Readings [updated]
Get inside the machinations of this international arms deal, which is revealing about the state of the Russian defense engineering industry. The rest of this article highlights:
- The evolving components of a Russian arms package: MiG-29SMT and SU-30 fighters, Yak-130 Mitten trainers, AT-13 Metis-M and AT-14 missiles, M1 Tunguska gun/missile systems, T-90S tanks, MI-24 hinds and more
- 9 photos of the purchased defense products
- Payment terms that include the development of Algerian oil and gas resources by Russia, and why that deal is geopolitically significant
- Other Algerian arms purchases from Russia
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