Algerian Arms Deal Brings Russia $7.5 billion, Gas Market Leverage
Mar 13, 2013 12:40 UTC by Defense Industry Daily staff
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March 11/13: UPI offers some snapshot updates of Algeria’s arms imports, which extend beyond Russia and look set to grow, thanks a 14% increase in their 2013 military budget. $10.3 billion isn’t huge by some standards, but it’s enough to keep the new acquisitions coming, and the oil and gas revenues underpinning that budget seem stable.
“Delivery of the Su-30MKA aircraft, worth $1 billion, should have been completed at the end of 2012 by Rosoboronexport, Russia’s state arms exporter.
Delivery of the last of 120 T-90 tanks under a $470 million 2006 contract is still under way. Delivery of 180 T-90s under an earlier contract was completed in 2009.
Algiers is also looking for two Project 636 advanced variants of the SSK Type 877EKM Kilo class submarines. These diesel-electric boats are stealthier than the Algerian navy’s four Kilos delivered in 1988 and 2010.”
Beyond its initial buy, Algeria bought 2 Stergushchy (Project 20382 Tiger export variant) corvettes from Russia. Beyond Russia, 2011 saw an order for an Italian San Giorgio Class LPD derivative and associated landing craft. 2012 saw Algeria buy 2 German Meko A200 frigates and 6 Super Lynx helicopters, and a reported agreement to purchase up to 1,200 Fuchs armored personnel carriers. There’s even a reported purchase of 3 light frigates from China pending, depending on whom one asks.
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A February 2006 report 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 came through the following month, as a high-level Russian delegation in Algeria closed up to $7.5 billion worth of arms contracts. The Algerian package remains post-Soviet Russia’s largest single arms deal. As an instructive comparison, annual Russian weapons export orders from all customers were just $5-6 billion per year in 2004 and 2005.
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Reuters South Africa quoted 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. A number of these deals have evolved over time, and other public-source information has helped to sharpen the picture a bit. The subsequent crash of Algeria’s MiG-29 deal, and its ripple effects, are also discussed.
The Algerian Package: What’s the Big Deal?
Aircraft
Ground Forces
Air Defense
Navy
Structuring the Deal: Anatomy of a Euro-Squeeze
Contracts and Key Events
Appendix A: Algeria’s Appetite for Advanced Arms
Appendix B: Russia’s Arms Industry Woes
Appendix C: Additional Readings & Sources
radar & launchers
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