Russian government allow NAPO to bypass export agency to deal with Algeria (300 words)

Published: 12/7/2000

According to the Deputy General Director of Novosibirsk based producer NAPO, Vladimir Nikonov, the Russian government is to authorize NAPO to supply Algeria directly with equipment to upgrade their air force's Su-24s. Therefore allowing them to circumvent the export agencies often accused of taking much of the profit out of export deals for producers for at least this deal. Under an agreement signed on the 12th of October 2000 by Promexport, which will soon disappear as a result of a merger with other agencies. The agency undertook to supply the Algerians with twenty-two Su-24s from the Russian Air Force's inventory in a contract reported to be worth $120m, which will be delivered after overhaul by NAPO, by the middle of 2001. The first ten Su-24s, which according to earlier reports were already in the plant for overhaul for the Russian Air Force, having been removed from mothballing in air force reserves. According to reports two aircraft are planned to be delivered before the end of this year, although the timetable seems to have slipped from earlier reports, from the end of October. It seems likely that the second delivery of aircraft will come from ten Su-24s contracted for overhaul by the Russian Air Force on the 2nd of October. According to Vladimir Nikonov, the contract has given the plant the cash flow to alleviate the plant's wage arrears. This follows a recent appeal by the Governor of the region, Viktor Tolonsky, for the government to assist the plant with orders for the upgrade of the air force's Su-24 fleet of a reported 365 aircraft delivered. The Su-24 was in serial production at NAPO until 1993, by which time 1,200 aircraft has been built, 100 of which were exported. In 1999, NAPO overhauled and modernized three Algerian Su-24s, for a reported $12m.

Article ID: 2236