Source:
The Moscow TimesMonday, December 19, 2005. Issue 3319. Page 7.
Thailand Inks Deal for 12 FightersBy Lyuba Pronina
Staff Writer
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Bangkok is wrapping up its first-ever arms deal with Russia, which includes a dozen Sukhoi-30 fighter jets.
Russia has signed a preliminary agreement to sell $500 million worth of military aircraft to Thailand in what would be the first such deal with the traditional U.S. arms client.
"We signed a memorandum for 12 Sukhoi-30MKMs during President Vladimir Putin's visit [last week] to Malaysia," a senior official at Irkut, the privately controlled maker of the Sukhoi fighter, said Friday. Putin was in Malaysia for a summit of the Association of Southeast Asian Nations.
Thailand originally agreed to buy the jets last year but put off the deal after a tsunami that killed hundreds of thousands of people hit the region last December.
The Irkut executive, who spoke on condition of anonymity due to the sensitivity of negotiations, said the memorandum of understanding also included delivery of helicopters to Thailand.
"We have gone half the distance and expect to sign the contract in the first half of next year," said Alexei Fyodorov, Irkut board chairman.
"This is good news for Russia, we haven't sold a single cartridge to Thailand," said Konstantin Makiyenko, deputy head of the Center for Analysis of Strategies and Technologies. "It also means that Russia has taken over the region -- we have fighter jets in China, Malaysia, Indonesia, Vietnam and now Thailand."
Makiyenko estimated that the deal would bring Russia at least $500 million. Rosoboronexport, the state arms sales agency, was not available for comment Friday.
European Aeronautic Defense and Space, or EADS, on Friday closed a deal to buy 10 percent of Irkut.
EADS has paid $65.3 million for the stake, which Irkut president Oleg Demchenko said would go toward both Irkut's own programs and joint projects with EADS.
EADS has already worked with Irkut on the international promotion of its Be-200 amphibious craft.
Last year, Airbus, which is controlled by EADS, signed a $200 million, 10-year contract with Irkut for the delivery of components for its A320 family of passenger jets.