Tag Archives: Russia

Israeli drones are prized in Russian market

Ilya Kramnik

RIA Novosti

Russian defense firm Oboronprom is to use Israeli components to assemble unmanned aerial vehicles, primarily intended for civilian customers, at a helicopter plant in Tatarstan.

The Russian military first showed an interest in buying Israeli-made UAVs back in 2008, after admiring their performance during the five-day war between Russia and Georgia over South Ossetia. In April 2009, Russia signed a $53 million contract for 12 Bird-Eye 400, I-View MK150 and Searcher Mark II UAVs.

The Russian Defense Ministry later bought another 36 Israeli UAVs for $100 million and announced the planned purchase of 15 more UAVs in April 2010.

In early 2010 it was reported that the Russian Federal Security Service (FSB) was also planning to buy Israeli UAVs. Unlike the Russian army, which was in talks with Israel Aerospace Industries (IAI), the FSB was interested in UAVs made by the company Aeronautics.

The Russian law-enforcement and security agencies’ explanation of their interest in Israeli UAVs as being down to the lack of competitive Russian-made equivalents provoked an outcry among Russian UAV producers. They accused the Defense Ministry of lobbying for the interests of foreign producers.

The reality is, of course, more complicated. Recently, after spending over 5 billion rubles ($165 million) on work in this area, the Defense Ministry carried out trials of Russia’s best UAVs. The results were disappointing: not a single UAV satisfied the defense ministry’s specifications.

Even the Russian-made UAVs that have been delivered to the army, including the Tipchak, which entered active service in 2008, are substandard.

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Venezuela to have nuclear plant

"Venezuela is on its way to getting nuclear power. I hardly need to say so, but I’ll say it anyway: for peaceful purposes, of course.”

Benedict Mander

Financial Times

President Hugo Chávez announced a deal for Russia to build a nuclear power station in Venezuela, as well as making further arms purchases and establishing a binational bank.

“Venezuela is on its way to getting nuclear power. I hardly need to say so, but I’ll say it anyway: for peaceful purposes, of course,” said Mr Chávez on Friday during his ninth visit to Moscow. “They’ll say that we are going to build atomic bombs. No we are not . . . Nothing is going to stop us, we are free, sovereign and independent.”

Dmitry Medvedev, Russia’s president, said: “Our intentions are absolutely pure and open: we want our partner Venezuela to have a full range of energy possibilities.”

Sergei Kiriyenko, head of Rosatom, Russia’s state nuclear corporation, said that Russia declined to be specific about the time- frame for the construction of the power station. “Maybe in 10 years, maybe earlier,” he said.

Russia and Venezuela have cultivated an increasingly close relationship in recent years in their effort to counterbalance US power and boost commercial ties, leading to a series of energy agreements and major weapons sales.

Laying the foundation stone for a statue in Moscow of Simón Bolívar, the Venezuelan independence hero – whom Mr Chávez’s “Bolivarian revolution” is named after – Venezuela’s fiercely anti-capitalist president said Russia and Venezuela were working together to put an end to “imperialism”.

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Related story:
Russia may sell S-300 Missile to Venezuela, instead of Iran
Russia to deliver 35 tanks to Venezuela

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Georgia signed border treaty with Turkey to opens up China-Europe transit route

Balkans

Road Map of Georgia / Photo: Voland. Turkey is Georgia's biggest trade partner.

Georgia signed a simplified border management agreement with Turkey on October 8 aimed at increasing its attractiveness as a transit corridor for goods moving between China and Europe and increasing flows of tourists.

The new arrangement means there will be only one set of customs checks and one set of bilingual documents required at border crossings between the two countries. Until now, two sets of checks and two sets of documents have been required, making the process lengthy and laborious. “Everything is slashed by half, there are no more double checks. We estimate it will cut the time spent at checkpoints by 40%. That means that in a 24-hour period at a customs checkpoint there will be an extra six or seven hours of slots,” said Kakha Baindurashvili, Georgia’s finance minister, who signed the document in Istanbul with Turkish state minister Hayati Yazici.

He added that the agreement shows real confidence and trust between the two countries, and mimics the system that is in operation on the border between France and Switzerland. “The idea was to strengthen the transport corridor and to try to eliminate whatever barriers were still between us,” he said.

Turkey is Georgia’s biggest trade partner. It imported goods worth $151m from Georgia and exported goods worth $527m to Georgia during the period from January to August this year, according to the latest figures from Georgia’s national statistics office.

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Related story:
The New Silk Road
Turkey reaping gains from geopolitical shift

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Turkey’s ties with China, Iran of concern

UPI

Military cooperation among Turkey, China and Iran is of concern to Israel and the United States, a report said.

Russia will pay Iran US$1 bln compensation for S-300 voided contract

Last week Turkey completed a joint covert air force exercise with China, the daily Haaretz said Thursday.

Until 2008, Israel and Turkey conducted joint aerial maneuvers in the Anatolian Eagle annual exercise.

Since Operation Cast Lead in Gaza last year, ties between Jerusalem and Ankara have deteriorated, and Turkey barred Israel from participating in the exercises, the newspaper said. Because of the Turkish government decision, the United States also refused to participate in this year’s exercise, and a number of NATO members followed suit, the paper said.

Instead, Turkey turned to China’s Air Force, and Beijing sent pilots and fighter jets to train with Turkey’s F-16 fighter planes, the paper said. Last week the two countries conducted a cover exercise that was briefly reported in the Turkish media after it was completed.

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Related story:
Russia to pay Iran US$1 bln compensation for S-300
Flying diplomacy
Turkey to open trade office in Ramallah
Turkey reaping gains from geopolitical shift

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South Africa looks globally not regionally

Francis Anthony Govia

Keepscases

A nation just a decade and half from Apartheid, South Africa looks further afield to form alliances and not to its African neighbors. It is building an image as an actor on the global stage.

The nation hosted a successful FIFA World Cup in the summer – a first on the African continent. Now its ambitions are directed at the economy. President Jacob Zuma announced last week during his state visit to China that talks are underway for South Africa to become part of the BRIC group of nations – the group of fast growing emerging economies — which include Brazil, Russia, India and China. One should note the timing of Zuma’s visit to Asia, and the priority he placed on that agenda, for within that same week 19 African nations that comprise the Common Market for Eastern and Southern Africa (COMESA) were holding policy meeting and a Heads of State Summit aimed at fostering stronger ties within the region, and conspicuously missing among the membership of COMESA was no other than the nation of South Africa.

This point was not going unmentioned. “South Africa is missing a golden opportunity to drive regional economic integration in Africa”, said the Secretary General of COMESA, Mr. Sindiso Ngwenya, just ahead of the group’s 28th Policy Organ meetings and the 14th Heads of State and Government Summit that is concluding this week in Mbabane, Swaziland. Mr. Ngwenya said he believed regional integration and increased trade could help the African region out of poverty. The Summit which runs from August 31st-September 1st was preceded by other Policy Organ meetings at technical, senior officials and Ministerial level, including a Business Forum which began on August 18th.

During the same period, Zuma was making an announcement about South Africa’s ambitions. Xinhuanet reported that Mr. Zuma told a gathering of the media that the nation has proposed its interest in joining the group consisting of four of the leaders of the developing world – or BRIC. “We believe they will take a favorable decision,” Zuma said. “We think that the BRIC expresses a very important grouping in a changing world today.”

Brazil, Russia, India and China encompass over 25 percent of the world’s land coverage and 40 percent of the world’s population as well as a combined gross domestic product (PPP) of $15,435 trillion.

South Africa’s “participation in BRIC would mean that an entire [African] continent that has a population of over 1 billion people is represented”, Zuma said.

What President Zuma did not implicitly say to the media is just as important. His administration’s energies and plans were to emphasize and foster trade ties inter-regionally (with nations such as China) as opposed to intraregional trade with its close neighbors. For South Africans, COMESA may not have the opportunities that BRIC offers. COMESA boasts 19 regional nations, a population of little more than 389 million and an annual trade amounting to $230 billion. An attractive a market as it is, the region’s intraregional trade lags at a paltry $15.2 billion. Zuma wants South Africa to be in BRIC; to gain immediate status for his nation in a trading block that is expected to dictate the terms of trade globally well beyond the 21st Century.

Within COMESA, South Africa would have to take the lead in a regional integration movement that has to forge an identity and carve out a space apart from stronger trading blocks. BRIC is already moving center stage. Nations within the group are already competing favorably against those that comprise the former G7 group of industrial nations and will likely set the terms for reciprocal trade among nations well beyond this century. To South African leaders, the nations that are part of COMESA are still viewed in the hemisphere as a source of raw materials, and not booming economies, and that is a label from which they hope to detach their nation.

Obviously South Africa’s thrust is commendable. The people who govern it expect and brook no limitations for its future. Their aspirations suggest that South Africans are willing to be challenged within the larger pond of the BRIC group, and indeed the world.

Within the BRIC group of nations, China commands status as the world’s second largest economy, and a GDP of near $10 trillion. At the low end of the group, Brazil’s GNP is over $2 trillion. South Africa’s GDP is approximately a quarter of Brazil’s.

South Africa will have to marshal its forces to match the growth of the other nations within the BRIC group, and it would likely have to forge trade alliances (at least on the bilateral level) with it neighbors to obtain raw materials necessary to spur that growth.

Still two of the members of BRIC – Russia and China – have given hopeful responses to South Africa’s entry into the group. Russian President, Dmitry Medvedev said that “participation of the Republic of South Africa in the discussion of various issues that are on the BRIC agenda would be extremely productive, given the fact that BRIC is a new group of fast growing economies and the RSA belongs to this category.”

Medvedev said that Russia was “prepared to develop various forms of cooperation with our South African partners, including in the BRIC format,” with a caveat: “The views and approaches of other [BRIC] members should of course be taken into consideration.” Read it here.

Beijing also stated that it understands the desire of some developing countries to join the BRIC grouping and “treats this with an open-minded attitude.” Read it here. Beijing and Pretoria have signed new bilateral agreements aimed at balancing trade between the countries and increasing investment in South Africa’s manufacturing industry and cooperation in renewable energy. But can South Africa build a strategic alliance with the BRIC group of nations and ascend to that body without first forming a stronger alliance for trade and economic development with the very African states it neglected last week? That may be what it believes.

Francis Anthony Govia received a Bachelor’s degree in International Relations at Boston University where he studied U.S. National Security and Foreign Policy with teachers who inspired him, such as General Fred F. Woerner (Ret.), Ambassador Stephen R. Lyne (Ret.), and Joseph Fewsmith. He received a law degree at the University of Wisconsin-Madison, and is a contributor to Activist Post.

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