Algeria’s MiGs to Land in RussiaThe RF Finance Ministry finally sanctioned yesterday the money appropriation for the buyback of 34 MiG-29 SMT fighter jets from Algeria. Russia’s RSK MiG Aircraft Corporation is willing to ink in October the contract worth roughly 23 billion ruble and receive the first payment under it (no more than 3 billion ruble) this year. The money is critical for the corporation. Its losses will double this year, the debt is big and the bonds mature.
The purchase of 34 MiG-28 SMT fighters has been added to the government’s program for state armaments for 2009 and 2010, said Sergei Mamaev, deputy general director at RSK MiG. Initially, the jets had been ordered by Algeria.
According to Mamaev, the Defense Ministry will have 33 jets in 2009 and one jet will reach it in 2010. “But RSK MiG intends to seal the contract with Defense Ministry in October, to supply the first consignment of up to 15 jets before the end of this year,†the official specified.
RSK MiG was to supply 34 MiG-29SMTs to Algeria under the contract of 2006; the contract budget amounted to $1.286 billion. But having received the first 15 jets in May of past year, Algeria halted the acceptance, claiming the jets had parts of poor quality or used parts. Algeria’s Air Force and Rosoboronexport agreed on return of 15 MiGs in February. After it, RSK MiG set to the active negotiations for supplying all 34 fighters to Russia's military.
The cancellation of Algeria’s contract generated a new debt for RSK MiG. Its size stands at $320 million, while the overall indebtedness of the corporation amounted to 43 billion ruble (around $1.8 billion) as of August 1. RSK MiG is the absolute money-loser; its loss equaled 800 million ruble past year and is estimated to step up to 1.6 billion ruble this year.
www.kommersant.comSource
http://www.kommersant.com/p1034355/MiG-29_Algeria_Defense_Ministry/
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