Welcome order for RSK MiG, but undermined by political sensitivity (291 words)

Published: 9/27/2001

RSK MiG is reported to have signed a large contract for the delivery of MiG-29s to Yemen. The company has so far refused to comment, although the order was confirmed by the Presidential administration. According to reports, the contract was signed two to three weeks ago and is believed to be worth $300m for 15 aircraft, with options for further aircraft. The contract, signed before the attacks in New York and Washington, could result in considerable embarrassment for the Russian authorities. Yemen is viewed as a state that will not support the US in its “crusade” against terrorism and was the site of an attack on a US warship by terrorists believed to have been associated with Osama Bin-Laden. Yemen's position was also made very clear by the country's President Ali Adballah Salih when he recently said that while the country was against any kind of terrorism, it was suspicious of US activity in the region and warned the US of "double standards". For RSK MiG, the sale is undoubtedly needed, with revenues in 2000 reported to be just $100m. However, there are signs of pick up in sales for the producer, with orders from Burma for ten aircraft and a recent order for two aircraft from Eritrea, to replace aircraft lost in action against Ethiopia in 1999 and reports that it may want more. The contract for around 60 MiG-29Ks for India is also expected in conjunction with the contract for the carrier Admiral Gorshkov. The company is also optimistic that its chances of winning the Indian tender for an advanced trainer have improved, owing to problems with the earlier reported winner, BAe Systems Hawk.

Article ID: 2780