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Russian firm sues arms exporter for $15 mln over Algeria deal

RIA Novosti

11:22 14/09/2009 MOSCOW, September 14 (RIA Novosti) - A Moscow-based missile manufacturer is suing the Russian arms export monopoly over claims the organization breached a contract with Algeria, a business daily reported on Monday.

According to Vedomosti, the Dux plant, contracted to make missiles for MiG-29 fighters as part of a 2006 contract with Algeria, is seeking 470 million rubles ($15 million) in compensation from Rosoboronexport following the African country's decision to tear up the contract, citing the "inferior quality" of the planes.

This is the largest lawsuit taken out against the Russian arms exporter.

A hearing at the Arbitration Court has been set for October 5.

Rosoboronexport signed a $1.3 bln contract to deliver 28 one-seater MiG-29SMT fighters and six two-seater MiG-29UB combat trainers to Algeria in March 2006 as part of an $8 billion military cooperation agreement.

However, after receiving 15 MiG fighters, Algeria refused further deliveries in May 2007. It then froze all payments under contracts with Russia in October 2007, requiring that Moscow first take back the 15 MiG-29s due to their "inferior quality."

The aircraft were eventually returned to Russia last April, and after thorough testing were approved for service with the Russian Air Force.


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