Monday, December 27, 2010

DTN News - DEFENSE NEWS: Russia Agrees To Buy Two Mistral-Class Helicopter Carriers

Defense News: DTN News - DEFENSE NEWS: Russia Agrees To Buy Two Mistral-Class Helicopter Carriers
Source: DTN News - - This article compiled by Roger Smith
(NSI News Source Info) SINGAPORE - December 27, 2010: President Dmitry Medvedev informed French President Nicolas Sarkozyby telephone Friday that Russia has decided to go ahead with a purchase of two French Mistral-class helicopter carriers, its biggest foreign arms purchase since the end of the Cold War.

The French reaction to the announcement was jubilant, with a banner on the Elysee's web site reading “France's naval industry has won!” — but the deal, worth up to $1.3 billion, has been greeted with apprehension by some smaller ex-Soviet states.

Lithuanian Defense Minister Rasa Jukneviciene on Monday criticized the decision to sell “extremely complex offensive weaponry to a third party, a country where the level of democracy is not one we can feel safe about,” she said, Reuters reported. “It's a big mistake.”

The Mistral-type amphibious assault ships can carry up to 16 helicopters, of which six can be on deck at any one time, and 450 troops for up to six months. For shorter periods that number rises to 700. The vessels also carry landing barges and hovercraft, allowing vehicles, tanks and soldiers to be quickly transferred ashore.

These capabilities will enhance Russia's control of its coastal regions and its striking power in conflicts like the war the Kremlin fought with Georgia in 2008.

The head of the General Staff, Nikolai Makarov, however, said the Pacific Ocean fleet will receive the first Mistral-class ship. He mentioned its future importance in the defense of the Kuril Islands, whose ownership is disputed by Japan.

“Its presence is essential,” he said. “We need a mobile means whereby we can quickly deploy a landing party.”

The Mistral-class ships will be built by the French shipyard companies DCNS and STX in conjunction with Russia's state-run United Shipbuilding Corporation. It is estimated that each ship will cost up to $655 million.

Building will begin at France's Saint-Nazaire docks in 2011, with the first ship to be delivered at the end of 2013 and the second at the end of 2014.

United Shipbuilding's participation in the production of the first ship will amount to about 20 percent, spokesman Igor Ryabov said Friday. He added that “Russia's share in the construction will gradually increase,” Interfax reported. It is likely that two Mistral-class ships will subsequently be constructed in Russia, at docks in St. Petersburg.

Both sides win from the deal, said Ruslan Pukhov, director of the Center for Analysis of Strategies and Technologies, “but for the French it is a great, great victory.”

The French-led consortium fought off competition from Spanish, Dutch and South Korean firms after Moscow announced the international tender in October. A major attraction of the French bid was the fact that it was free from American components, licenses or technologies, Pukhov said.

Not only will it provide an “oxygen pillow” for French shipbuilding, said Pukhov, but it also “opens the door for big future purchases from France by the Russian Defense Ministry.”

A statement on the Elysee's web site said the deal would guarantee 1,000 French jobs for up to four years.

An important earlier sticking point of the deal had been technology transfer — with Russia insisting that the ships be fitted with state-of-the-art command and control technology.

Ryabov said Friday that Russian interests in this area had been satisfied. “United Shipbuilding Corporation has sacrificed profitability in this project for the sake of acquiring the technology to build this type of ship,” he said.

He confirmed that Russia would receive the technology to produce the Mistral's communication, command and control system.

The conclusion of the Mistral deal is the latest, and largest, in a series of foreign armament purchases by Moscow. It follows agreements to provide the Russian military with British sniper rifles, Israeli drones and Italian armored personnel carriers.

In an interview with the Izvestia newspaper on Monday, Defense Minister Anatoly Serdyukov admitted that Russia has “some need for foreign technology because, in certain areas of armament, we — unfortunately — lag behind. Our military equipment does not correspond to the demands of our age.”

He added that Russia doesn't have a history of manufacturing Mistral-type ships and that “to catch up now would be pointless.”

No country on the planet, however, produces all their military hardware internally, Pukhov said — even the United States buys some equipment from abroad.

“Russia used to pretend that it was an exception,” he added. “But now we're seeing that it has to follow the rules like everyone else.”


*This article is being posted from Toronto, Canada By DTN News ~ Defense-Technology News, contact: dtnnews@ymail.com

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  • DTN News - DEFENSE NEWS: Lockheed F-35 Program Faces $1 Billion Cut In U.S. Senate Spending Measure

    Defense News: DTN News - DEFENSE NEWS: Lockheed F-35 Program Faces $1 Billion Cut In U.S. Senate Spending Measure
    (NSI News Source Info) SINGAPORE - December 27, 2010: Lockheed Martin Corp.’s F-35 Joint Strike Fighter program faces a $1 billion budget cut under a bill to finance government operations that’s advancing toward a Senate vote.

    The move would strip out the JSF money, eliminating seven aircraft, from a U.S. Defense Department request for $7.86 billion and 42 planes, according to the spending measure, which didn’t give a rationale for the new totals.

    Savings from the JSF program, the Pentagon’s biggest arms project, would be the most among $8.4 billion in weapons- spending reductions in the 1,924-page Senate bill released Dec. 14. Bethesda, Maryland-based Lockheed is the largest U.S. defense contractor by sales.

    The measure’s $667.7 billion defense section also provides $450 million to keep developingGeneral Electric Co.’s F-35 backup engine. Defense Secretary Robert Gates has said the engine from primary supplier United Technologies Corp. is sufficient, and has vowed to advise President Barack Obama to veto any bill that funds the GE model.

    Senators are proposing to drop five of the Air Force F-35s from the Pentagon’s request and two of the short-takeoff and vertical-landing models being built for the Marine Corps. The military expects the first F-35s to be ready for combat in 2016.

    Lot 4 Prices

    Separately, the Pentagon F-35 program office released today the per-aircraft costs of the 42 jets to be bought in the fourth low-rate production contract awarded Nov. 19. The Air Force version will cost $111.6 million, the Marine Corps short-takeoff and vertical landing model is projected at $109.4 million and the Navy carrier model will be $109.4 million.

    The price includes one-time expenses for production equipment, flight-test instruments and manufacturing support equipment, the Pentagon said. It doesn’t include the propulsion system.

    Jennifer Whitlow, a spokeswoman for Lockheed, said in an e- mailed statement the F-35’s price has “dropped dramatically” from the previous three production contracts. The Air Force version’s price has dropped as much as 50 percent compared with the first contract of two aircraft, she said.

    Omnibus Measure

    Under the bill, the Pentagon would get $495 million to buy nine Boeing Co. F/A-18E/F fighters it didn’t request. The bill provides $2.1 billion to fully fund the Navy’s request for 35 Boeing and Textron Inc. V-22 tilt-rotor Osprey and $1.8 billion for additional Boeing P-8A Poseidon surveillance aircraft.

    The so-called omnibus measure would cap a year that included a breakdown in the congressional budgeting process, as Democrats were unable to pass a tax-and-spending blueprint or any of the 12 annual appropriations bills to fund federal agencies for the fiscal year that began Oct. 1.

    Once senators approve their legislation, it must be reconciled with a House version that keeps the federal government funded at the levels for fiscal 2010, which ended Sept. 30. It is called a “Continuing Resolution.” The House bill doesn’t reduce F-35 purchases.

    Senate Appropriations Committee Chairman Daniel Inouye, a Hawaii Democrat, said he is confident the spending plan will be passed before Congress adjourns for the year on Dec. 30.

    Defense Secretary Gates told reporters today at the White House the Senate version is preferable to the House measure.

    “We have very little flexibility to move money around in the Pentagon budget” under the House proposal, he said. A continuing resolution for the Defense Department “is the worst of all possible worlds.”

    Lockheed rose 65 cents to $70.37 as of 4 p.m. in New York Stock Exchange composite trading. The stock has dropped 9.2 percent in the past 12 months.

    To contact the reporter on this story: Anthony Capaccio in Washington atacapaccio@bloomberg.net

    To contact the editors responsible for this story: Mark Silva at msilva34@bloomberg.net; Ed Dufner atedufner@bloomberg.net

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