"“We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried.” "


Chinese premier Wen Jiabao 12th March 2009


""We have a financial system that is run by private shareholders, managed by private institutions, and we'd like to do our best to preserve that system."


Timothy Geithner US Secretary of the Treasury, previously President of the Federal Reserve Bank of New York.1/3/2009

Tuesday, June 27, 2006

Russia arms Algeria ... again

In January this year, Russia’s arms export agency Rosoboronexport, along with leading Russian defense enterprises, announced they had agreed a range of supply / training and maintenance contracts for the delivery of $4 billion worth of Russian arms and military equipment to Algeria.

1 contract is for for delivery of 37 multifunctional and upgraded MiG-29SMT jet fighters which wowed the Dubai airshow last year. Upgrades include weapons control system improved by replacing N019ME radar by the Zhuk-M radar. The target acquisition range on head-on courses grows to 120 km, while the number of simultaneously engaged targets is increased to 4. This makes the MiG-29 a truly multirole fighter, whose combat effectiveness is said to equal that of the F-16C in the striker role, while outplaying the F/A-18C and Mirage 2000-5 in terms of cost-effectiveness.

The cockpit has also been improved with two colour LCD MFDs with push-button and HOTAS controls. The MVK-SUV three-channel quadruple-redundant digital computer is compliant with the MIL-STD-1553B international standard, which means the aircraft can be easily customised in order to meet specific needs.

The fuel system has been augmented with strap on tanks by 500 Kg and in flight refuelling is available - hence improving operating range.

It is also expected that they will also supply 28 twin-seat high agility Su-30 jet fighters,similiar to the ones supplied to China and India. Algeria received 18 SU-30MK multi-role fighters in 2005, along with a US$120 Mn. deal for 22 SU-24 Fencer tactical bombers that proved so popular in destroying Chechnya.

8 divisions of Favorite surface-to-air missile systems and a batch of T-90S battle tanks are also to be supplied.

Russian defense enterprises also signed a number of deals for the modernization and repair of arms and military equipment of Soviet (Russian) make that are currently being operated by the Algerian army. Payments for deliveries will be made, involving complex write -offs on Algerian debt to the former Soviet Union.Naturally this is where LUKoil's CEO Vagit Alekperov, Gazprom chief Alexei Miller, and Igor Makarov of independent gas producer Itera enter the scene as it is evident that Algeria will give gives Russian companies access to oil- and gas-rich regions, with the proceeds split between the producer and the Algerian government. The Algerian government is then bound to immediately transfer the revenues to Russian arms manufacturers, until such time as the previous debt (said to be US$4.7 BN.)is paid off.

In the near future Algeria are looking to buy 50 or more Yak-130 training jets and about 30 Tunguska-M1 surface-to-air gun/missile systems.

No doubt the MOD salesmen will be much in evidence when President Bouteflika arrives next week to share a cuppa with HMQ who will no doubt be anxious to discuss the question of Human Rights in Algeria with him.

It may be possible ... but don't bet on it, that the JESS who oversee the Strategic Energy needs of the UK have taken on board that Algeria (7th largest natrual gas rserves = 4.55 trillion cubic metres), is the world's fourth-biggest gas exporter after Russia, Canada and Norway at 60 billion cubic meters per year.

(They might also look at this Algeria forces kill 19 Islamic militants: reports
ALGIERS (Reuters) - Algerian government forces killed 19 Islamist militants in attacks on mountain hideouts of rebels who have rejected an amnesty aimed at ending years of strife, newspapers reported on Monday.)

Russia, is of course the premier gas exporter to Europe, with about 26% of the market. By coordinating its export policies with number 3 exporter Algeria (about 10% of the European market), Russia may be able (and may wish to) to increase its leverage within Europe, complicate the EU's efforts to diversify its sources of supply, and leverage that improved position into greater participation in and influence over Europe's pipeline projects.

If they do take the chance to look at how the Russian silovaki have parlayed their energy resources they may like to take a peek at what is happening currently in Ukraine.

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