Development funding for the Pantsir-1 SAM system

Published: 6/30/2000

The Tula Instrument Manufacturing Design Bureau has signed a $734m contract for the supply of the Pantsir-1 SAM system to the United Arab Emirates (UAE). The deal calls for the delivery of 50 systems over a three-year period in batches of 10, 20 and 20 after the completion of the first prototype system in the next two years. Funding for the completion will come from the UAE, which will provide 30% of the contract price, according to reports, for the completion of the system prior to serial production. This is only the second example of a foreign customer providing development funding for a military programme, the first being the Su-30MKI, which was funded by India Tula, unlike much of the defence industry, is not required to deal through the export agencies in its negotiations with foreign governments under a decree signed early this year, allowing the Bureau to export directly and enter into agreements with foreign producers.

Article ID: 1904