Contract potentially worth $1 billion(360 words)

Published: 11/3/2000

During a visit to China Deputy Prime Minister Ilya Klebanov stated that Russia would deliver early warning radar to the Chinese Air Force The type of radar is not entirely clear, but it appears from reports that the aircraft will be the A-50M/U, the Russian Air Force's AEW&C aircraft. An agreement between the two government's is expected to be signed during the visit of Prime Minister Mikhail Kasyanov between the 3rd and 4th of November according to the Russian press.

The possible sale of early warning aircraft by Russia to China follows an abortive attempt to sell A-50 aircraft equipped with Israeli radar earlier this year. At that point the US Government sought to block the sale of A-501s, A-50s equipped with the Israel Elta Phalcon radar, on the grounds that it involved the transfer of sensitive technology to the Chinese along with improving their offensive capability against Taiwan. The Israelis under very heavy US pressure, which threatened US aid to the country, subsequently abandoned the contract reported to be worth $600m-$1billion. The loss to the contractor IAI was estimated at $250m and for the producer of the aircraft TANTK $150m. TANTK provided the aircraft to the Israeli's in 1999 for fitting out with the Phalcon radar prior to the abandoning of the contract.

The reports suggest that the Chinese aircraft will be equipped with the Vega-M Shmel-II, a development of the basic Russian AWACs radar and reported to be equivalent to the performance of the US and NATO Boeing E-3C Sentry. The aircraft with the Russian radar are designated A-50M/U and are reported to be for sale between $180-200m a unit, according to the radar's designers. If the contract is signed, four aircraft will be delivered to the Chinese over the next three years with the possibility of the Russian Air Force leasing aircraft to cover the interim period.

Elsewhere, the Indian Air Force as part of its re equipment plans for the next 15 years has announced its intention of finally confirm its purchase of three A-501 fitted with the Phalcon. Indian personnel are reported to have been training on the aircraft at the Scientific and Research Institute N13 since earlier this year.

Article ID: 2176