Putin targets deals worth $10b on Libya trip

[ejaz007]

Putin targets deals worth $10b on Libya trip
Reuters
Published: April 17, 2008, 00:16

Tripoli: Russian President Vladimir Putin plans to oversee the signing of deals worth over $10 billion (about Dh36.5 billion) on a trip to Libya aimed at grabbing a slice of a market opening to the world after years of sanctions, his spokesman said.

Putin, who quits on May 7 to become a prime minister to his loyal successor Dmitry Medvedev, was to start a two-day visit to the Opec member yesterday. It is the first visit by a Kremlin leader since 1985.

"The main point of the visit is to compensate for losses our bilateral relations suffered during the sanctions, which we observed strictly in contrast with some Western competitors," a Kremlin spokesman, Dmitry Peskov, said.

The former outcast state, whose oil and gas riches earned it more than $40 billion in 2007, is now aggressively courted by Western companies seeking contracts from big state infrastructure projects aimed at modernising Libya's rundown public services.

Visits to Tripoli last year by then British Prime Minister Tony Blair and French President Nicolas Sarkozy and a 2004 trip by then German Chancellor Gerhard Schroeder were crowned with large contracts for their countries' respective companies.

Putin was to hold talks with Gaddafi yesterday and today and oversee the signing of a political declaration and an accord on investment guarantees, according to the Russian officials. Russia, Libya's traditional supplier of armaments, is also eyeing more defence sales.

Gulfnews: Putin targets deals worth $10b on Libya trip

 

[Always Neutral]

I must say Putin has succeeded where most leaders would have failed. Its a matter of time when Russia will be back to its original glory.

I have vast respect for this man. Gen M could have learnt a good lesson from him.

Regards

 

[EagleEyes]

I have vast respect for this man. Gen M could have learnt a good lesson from him.

In what areas? Please elaborate.

 

[A.Rahman]

In what areas? Please elaborate.

Assassinating journalist & political rivals.

 

[Always Neutral]

In what areas? Please elaborate.

Firstly he dealt with an iron fist with all the oligarchs who looted the country after the collapse of the USSR for eg. Yukos.

Secondly he re-structured the hugely in-efficient State Enterprises.

Took back under Govt. control all strategic sectors like Oil gas etc.

Ensured a good policy to allow State sectors to make JV's with International Companies for exploration for new sources of minerals in places like Serbia.

Made Russia stronger not weaker.

Regards

 

[fatman17]

Russia prepares $2.5bn defence export package for Libya

Keri Wagstaff-Smith Jane's Industry Reporter - London

Key Points

Russia is preparing a defence export package for Libya worth USD2.5 billion

The deal reportedly involves Russian air defence systems, fighters and helicopters

Libya is also discussing defence deals with France and South Korea


Russia has prepared contracts for defence exports to Libya that may exceed USD2.5 billion, according to a report from Russian military news agency Interfax-AVN on 14 April.

Citing an industry source, Interfax said that a "set of contracts for the export of Russian aircraft, anti-aircraft missile systems, naval and army weaponry to Libya may be signed in the near future. All the technical and financial formalities have been co-ordinated. The total cost of the contracts may exceed USD2.5 billion".

Interfax said that, "according to unofficial information", the list of potential weapon systems for export to Libya includes several batteries of the S-300PMU2 Favorit anti-aircraft missile system; about 20 Tor-M1 and Buk-M1-2 anti-aircraft missile systems; two squadrons of aircraft - one of Mikoyan MiG-29SMTs and one of Sukhoi Su-30MKs - and several dozen Mil Mi-17, Mi-35 and Kamov Ka-52 helicopters.

There are also plans to sign contracts for the modernisation of Soviet-made weaponry, which makes up nearly 90 per cent of Libya's weapons inventory.

"There are no impediments to the export of weaponry to Libya as the UN Security Council sanctions were lifted long ago," said Interfax, citing its source.

According to a report from Russian state-run news agency RIA Novosti, released on 15 April, the Kremlin previously said that Russian President Vladimir Putin would visit the North African state on 16-17 April at the invitation of Libyan leader Moammar Ghadaffi. No details of the agenda were provided.

In addition to interest from Russia, Libya has been earmarked for potential exports from other countries, including France, Italy and South Korea.

A package of defence accords valued at EUR4 billion (USD6.3 billion) is being negotiated by France and Libya, including the export of French company Dassault's Rafale multirole fighter aircraft.

Italy's Finmeccanica also signed an agreement with the North African country to create an electronics joint venture within the defence and security sector in April 2007 and the Italian group's Alenia Aermacchi subsidiary was contracted in August 2007 to supply 12 SF-260 primary trainers to Libya in a USD4.1 million deal.

Libya has been discussing military procurement with South Korea. Jane's reported on 14 April that Libyan defence officials visited Seoul in March to discuss the possibility of procuring military equipment.

 

[ejaz007]

Russia scraps $4.5bn Libyan debt
* Debt cancelled in exchange for contracts for Russian firms

MOSCOW: Russia on Thursday cancelled Libya’s Soviet-era debt of $4.5 billion in exchange for contracts for Russian firms, a top official was quoted as saying.

“Russia has cancelled the debt in exchange for several billions of dollars in contracts for Russian companies,” Finance Minister Alexei Kudrin was quoted by Russian news agencies as saying in Tripoli. Referring to the debt deal, President Vladimir Putin, who was on a visit to Libya, was quoted as saying, “We are satisfied about the way in which we resolved this problem. I am absolutely convinced that the solution we have found will help the Russian and Libyan economies.”

During Putin’s visit, Russian gas giant Gazprom signed a cooperation deal with Libya’s national energy company. The agreement talks about joint exploration and production projects in Libyan oil and gas reserves, as well as the construction of new power stations and liquefied natural gas (LNG) facilities, said Gazprom’s press service.

Kudrin did not give further details on the contracts signed. Russian news agencies said one of them was for Russian Railways, which would build a 500-kilometre (310 mile) line through Libya over four years for around $3.2 billion. Russian arms export contracts were also to be discussed.

Libya was an important ally of the Soviet Union and a major importer of Soviet weaponry. Diplomatic and trade relations were weakened after the fall of the Soviet Union in 1991. Putin met with Libyan leader Moamer Kadhafi on Wednesday and Thursday. afp

Daily Times - Leading News Resource of Pakistan

 

[ejaz007]

Putin takes 3-billion-dollar arms contracts to Libya
15.04.2008 Source: Pravda.Ru

Russia’s outgoing President Vladimir Putin is making an official visit to Libya on April 16-17. Libya plans to purchase Russia’s military hardware in the sum of almost three billion dollars. Respective contracts have been prepared on the threshold of Putin’s visit to Libya. However, it is not ruled out that the contracts will not be signed due to the problem with the Libyan debt.

Putin is visiting Libya on the invitation from the leader of the Libyan revolution, Muamar Kaddafi. Russia’s Finance Minister, Aleksei Kudrin and the Director of Russia’s major defense export enterprise Rosoboronexport, Anatoly Isaikin, are traveling to Libya with Putin, the Vedomosti newspaper reports.

The contracts, which the Russian officials are taking to Libya include the export of 12 up-to-date Su-35 jet fighters (their test flights are only getting started in Russia) and anti-aircraft missile systems Tor-M2E.

Experts say that most of the documents will only be initialed because the issue of the Libyan debt to the USSR has not been regulated yet. Spokespeople for the Finance Ministry of Russia have not specified the amount of the debt by claiming that it would be inappropriate to reveal any numbers during negotiations.

According to the Appendix to the Law about the Federal Budget 2007, Libya owed about $3.5 billion as of January 1, 2006. Ministerial officials do not confirm the amount at the moment, though.

Official spokespeople for Russia’s Foreign Ministry said earlier that the question on the regulation of the Libyan debt to the former USSR was one of the key issues of the Russian-Libyan summit.

The regulation of the debt issue was complicated with the arrest of Deputy Finance Minister of the Russian Federation, Sergei Storchak at the end of 2007. Storchak was in charge of credit and international cooperation issues of the ministry. The official was charged with alleged embezzling of about $40 million.

Russia has a serious competitor of the Libyan arms market – France. Paris hopes to sell 18 Rafale fighters to Tripoli for more than 2.5 million euros. It is highly important for France to sell the fighters to Libya for it could become the country’s first export delivery after a series of failures.

In addition to weapons, Russia has other interests in Libya. In 2007 Russian natural gas giant Gazprom won a competition for the development of an extensive oil and gas field with 20 million tons of crude reserves. Lukoil, another Russian giant, also has its office in Libya too. However, its employee, Alexander Tsigankov, was arrested by Libyan police in November of 2007 on suspicion of espionage.

Libyan official suspected the Russian citizen of illegal purchase o information about oil and gas deposits of the nation shortly before last year’s tender for their development. Moscow officials believe that such accusations are groundless. Libya has not brought any charges against Alexander Tsigankov yet. Nevertheless, the incident overshadows bilateral relations between Russia and Libya.

Putin takes 3-billion-dollar arms contracts to Libya - Pravda.Ru