Now, I don't like a lot of what Putin's doing to his country, but looking at things from his perspective: NATO's got the Russians surrounded. That must be why we sell them weaponry.
How to Do Business With a Blacklisted Russian Weapons CompanyBy Sharon Weinberger
July 28, 2008 | 1:16:00 PMCategories: Cash Rules Everything Around Me, Crazy Ivans
We now know that the U.S. Army handed out a sole-sourced deal to sell nearly two dozen Russian Mi-17 helicopters to Iraq. But the lingering question is, how?
Rosoboronexport, the Russian state agency in charge of military exports, is blacklisted from working on U.S. government deals. So how did the U.S. Army and the Carlyle Group-owned company ARINC manage to pull off the $325 million deal? Or more to the point, did they knowingly violate this ban?
Let's talk about that ban. In July 2006, Rosoboronexport was accused by the U.S. government of violating the Iran-Syria Nonproliferation Act and was placed on what is informally called a "no go" list, ostensibly shutting the Russians out of some big-ticket foreign military sales to Iraq (ironically, the Russians deny wanting to sell weapons to Iraq, given their unhappiness over the U.S.-led invasion).
The U.S. ban against working with Rosoboronexport has policy as well as legal dimensions. Russia, for example, has clashed with the United States over Moscow's arms deals with Venezuela. Just last week, in fact, Venezuelan president Hugo Chavez was in Russia to seal new arms deals with Rosoboronexport, and according to news reports, he called for a broader alliance with Russia against the United States. Rosoboronexport also faces accusations of violating an international arms embargo against Sudan by selling the conflict-ridden country MiG-29 fighters -- Russia is adamantly denying this charge.
Given all this, how did ARINC set up the helicopter deal? According to contract details confirmed by the Pentagon, ARINC avoided the Rosoboronexport ban by purchasing the helicopters as commercial items from Kazan, a Russian helicopter manufacturer, thus avoiding direct work with the Russian state agency, which handles military exports. The helicopters would be converted for military use in the United Arab Emirates. That would make the deal costly, but legal.
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http://blog.wired.com/defense/2008/07/how-to-do-busin.html#more Hiya! A most hearty welcome to DU, 10 Year Freeper!