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Korean warplane deal: Russian hopes soar
By John Helmer

MOSCOW - The international battle to win a multibillion-dollar jet-fighter contract from South Korea's Defense Ministry has taken a new twist, as Seoul is considering a deal with Russia's arms exporter Rosoboronexport that would award a license for South Korea to assemble and produce the Sukhoi-35 fighter-bomber.

A Kremlin source told Asia Times Online that the multipurpose Sukhoi combat aircraft is being considered by Seoul in a competitive tender against rival bids from the US-made F-15 and the Rafale aircraft from France.

The tender is for purchase of 40 aircraft; the total order is estimated to be worth about US$4 billion. The United States, which traditionally has supplied 80-90 percent of South Korea's military arsenal, is anxious to win the order, and a series of officials and politicians - including President George W Bush himself - have been pressuring Seoul to buy the F-15. If the deal doesn't go through, the jet's manufacturer, Boeing, will be forced to close its F-15 assembly line in St Louis, analysts predict.

And, as Asia Times Online reported last month, there is more at stake for the United States than a lucrative contract for one of its top corporations. There is also the matter of its military strategy in Northeast Asia, in which South Korea plays a vital role. Said Philip Finnegan, an aerospace industry analyst at the Teal Group, a Virginia think tank: "The United States always stresses interoperability of Korean weapons systems with the needs of US troops."

But the South Korean Defense Ministry has been discussing a variety of Russian arms and aerospace offers since the visit to Seoul last February of President Vladimir Putin. Shortly after the visit, the two governments signed a memorandum of understanding that envisaged the supply of Russian aircraft worth an estimated $600 million to $800 million as partial repayment of Russia's multibillion-dollar debt to South Korea.

The terms of the tender bid in Seoul parallel an offer by Rosoboronexport of the Su-35 in a tender called by Brazil. The rivals in that contest include the French Mirage-2000/5. The Russians recently signed an agreement with a Brazilian aerospace company to build the Su-35, if it wins the tender.

The Malaysian government is also close to a decision on whether to buy the Sukhoi-30MKI. The aircraft was flown in demonstrations at the Langkawi International Maritime and Aerospace (LIMA) exhibition in October. Also shown at the same time was the Mikoyan MiG-29. "The Malaysians have been offered their choice of the MiG-29 or the Su-30MKI. It's their choice to make," the Kremlin source said.

After several years of negotiations in the early 1990s, which saw intense rivalry from Washington for Malaysia to buy the F-18 Hornet, Prime Minister Mahathir Mohamad split his air-force acquisition into two, buying 18 Mikoyan MiG-29s and an equal number of Hornets. The Malaysian Air Force has been considering a follow-on order, and the Boeing-built F-18, in a modified form, is again competing against the Russians.

China's air force has already contracted to buy the Su-30MKK, which is equipped with Russian avionics. The Su-30MKI model to be offered to Malaysia is equipped with Israeli and French avionics, and is more suited to English-speaking pilots. This version of the aircraft has been licensed for manufacture and use in India.

Singapore is also reported by Russian sources to be considering the Su-30.

Russian military specialists say the Su-35 is growing more popular in Asia. The reason, they told Asia Times Online, is that the Su-35 has a longer operating radius than the Su-30 or its Western competitors; better maneuverability in flight; and larger ordnance capacity. According to one Russian source, "its technical characteristics are much better but the price is lower".
 

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