Ka-52 orders (234 words)

Published: 3/2/2001

South Korea and Russia have signed a memorandum of understanding (MoU), for a $700m contract, for T-90 tanks and Ka-52 (Ka-50-2) attack helicopters (designated as Ka-52Ks in press reports). Deputy Prime Minister Ilya Klebanov signed the deal during a visit to South Korea by the Russian President, Vladimir Putin, where he addressed the country's National Assembly. According to reports, as with a number of other helicopter sales to the South Korean police and emergency services, payment for the $15m helicopter deal will be by cash (50%) with the remaining value reducing Russia's debt to South Korea. The completion of the final deal will however, involve considerable negotiation, according to sources close to the discussions reported by Itar-Tass. The value of the contracts (put at $700m by local reports), does appear to fall well short of the tender for 145 helicopters announced in early 2000, particularly as it involves the acquisition of an unspecified number of T-90 main battle tanks. The Russian media have also reported additional agreements between the two sides, including a protocol of intentions in military-technical cooperation between Russia and South Korea. With Komsomolskaya Pravda has reported that a substantial reduction in Russia's debt to South Korea, of around $1.9bn, is being discussed - through further sales of helicopters, military cargo aircraft (the An-70?) and hovercraft.

Article ID: 2390