CRS-8
purchasers
have been longstanding customers of the United States or major West
European
suppliers. These prospective arms buyers have proven reluctant to
replace
their
weapons inventories with unfamiliar
non-Western armaments when newer
versions
of existing equipment are readily available from their traditional
suppliers,
even
in an era of intense competition. The difficult transition Russia has
attempted to
make
from the state supported and controlled industrial system of the former
Soviet
Union
has also led some potential arms customers to question whether the
Russian
defense
industries can be reliable suppliers of the spare parts and support
services
necessary
for the maintenance of weapons
systems they sell abroad.
Yet
because Russia has had a wide variety of weaponry to sell, from the most
basic
to the highly sophisticated, and despite the internal problems evident
in the
Russian
defense industrial sector, various developing countries still view
Russia as a
potential
source of their military equipment. Russia, therefore, has made strong
efforts
to gain arms agreements with developing nations that can pay cash for
their
purchases,
and Russian sales since 1995 indicate that Russia has had varying
degrees
of
success in doing so. After 1995, Russia has made smaller arms deals
with Kuwait
and
the United Arab Emirates for armored fighting vehicles and with
Malaysia for
MiG-29fighteraircraft.
In 2000, Russia concluded a $500 million agreement with the
U.A.E.
for the Pantsir S-1 air defense missile system. Iran, primarily due to
its own
economic
difficulties (as well as U.S. pressure on Russia), was not a major
purchaser
of
arms from the Russians after 1995. Iran had been a primary purchaser of
Russian
armaments
inthe early 1990s, receiving such items as MiG-29 fighter aircraft,
Su-24
fighter-bombers,
T-72 tanks, and Kilo class attack submarines. In late 2000, Russia
served
public notice that it again intended to pursue major arms sales with
Iran,
despite
objections from the United States. Iraq was once a major purchaser of
advancedweaponryfromRussia,but
hasnotbeenasourceoforders sincethe Persian
Gulf
war. Russia clearly would pursue new major weapons
deals with Iraq if current
U.N.
sanctions on Iraq that ban Iraqi arms purchases are lifted.
Russia’s
principal arms clients since 1994 have been India and China. Among
Russia’snotablearmsdealsduringrecent
years hasbeenthe saleof40 newSu-30MK
fighter
aircraft to India. Elements of a longer range plan for procurement as
well as
co-production
of a number of advanced Russian weapons
systems were agreed to
with
India in 1999 and 2000. These agreements are likely to result in
significant
aircraft,
missile, and naval craft agreements and deliveries to the Indian
government
inthe
yearsto come. In late 2000, Russia concluded a licensed production
agreement
with
India valued in excess of $3 billion for 140 Su-30MKI combat aircraft.
It also
concluded
an agreement for the sale to India of 310 T-90 main battle tanks for
about
$700
million, and an agreement to retrofit and deliver the Admiral Gorshkov
aircraft
carrier
for over $650 million. Russia’s arms supplying relationship with China began
to
mature in 1994. By 1996 Russia had sold China
at least 72 Su-27 fighter aircraft
as
well as four Kilo class attack submarines. Subsequently, a licensed
production
agreement
was finalized between Russia and China,
permitting the Chinese to co-
produce
at least 200 Su-27 aircraft. Russia also sold China
two Sovremenny-class
destroyers,
withassociatedmissilesystems. In 1999, the Chinese purchased between
40-60
Su-30 multi-rolefighteraircraftfor anestimated$2 billion,anddealsfor
future
procurement
of other weapons systems were
agreed to in principle. In late 2000,
RussiaconcludedanagreementwithChinato
purchaseatleastfourupgradedRussian
Mainstay
airborne early warning aircraft, designated the A-50E, for about $1
billion.
