USD 2.3 billion on MiG’s
The order for new Migs is apparently confirmed for 1.3 billion with another contract inked for the repair of 66 of Yemen’s existing fleet of Mig’s at a cost of another billion. from Mosnews:
Russia’s MiG Corporation has received a $1.3 billion order from the Yemen Defense Ministry for delivery of 32 MiG-29 SMT fighter jets. In addition to this, the Russian producer will repair 66 old MiG-29 fighters for Yemen in the first quarter of 2007. Russian business daily Vedomosti reported on Thursday, Aug. 30, that the cost of the second contract will amount to about $1 billion.
As a result of this new order, MiG’s order portfolio will almost double to $4.5 billion. Thanks to the new contracts, the company’s revenues in 2007 will grow to $1.1 billion as compared with $245 million in 2005. Despite this, MiG’s order portfolio is still smaller than that of Russia’s largest military aircraft producer — Sukhoi Bureau.
This is not the first time that Yemen is buying military hardware from Russia. In 2001 the Middle Eastern country signed a contract for supplies of 20 MiG-20 SMT fighters. These jets were meant to replace the outdated fleet of American F-5E and Soviet MiG-21 as well as Su-20/22 fighters. In 2005 Russia completed a contract for delivery of another 6 MiG-29 SMT fighters and modernization of 14 MiG-29 SE that were bought earlier.
Two billion for armaments, seven billion in foreign reserves (USD), not such a poor country after all.
RUSSIA REPORTEDLY RECEIVES $1.3 BILLION ORDER FROM YEMEN FOR MIGS
An unnamed source close to Russia’s main arms exporter, Rosoboroneksport, was quoted by the daily “Vedomosti” on August 31as saying that Yemen might buy a further 32 MiG-29SMT fighters in addition to the 20 it already purchased between 2001 and 2005. Neither Rosoboroneksport nor MiG agreed to comment on the report. A spokeswoman for MiG said nonetheless that a contract to upgrade 66 MiG-29s belonging to the Indian air force might be signed in the first quarter of 2007. PM
