Moscow - Mikhail Pogosyan, General Director of the two leading Russian military jet-makers, Sukhoi and MiG, has called the Russian government to block the sale of Russian jet engines to China, saying Beijing will use them to compete with the Russian fighters on global markets.
China mounts Russian RD-93 engines on FC-1 fighters it builds jointly with Pakistan (called JF-17 in Pakistan), which, Pogosyan believes, compete with the Russian MiG-29 fighters.
"I am not against the export of separate technologies but its should be agreed with those who make final products that such export would not harm them," Pogosyan was quoted by the Russian Kommersant business daily Tuesday. The newspaper also reported that Pogosyan has sent a letter to the Federal Service for Military and Technical Cooperation, effectively blocking a new contract to supply 100 RD-93 engines to China.
A MiG source confirmed the sending of the letter but would not disclose other details from it. No one was available for comments at the Federal Service for Military and Technical Cooperation.
The $238-million contract for 100 RD-93 engines for China was signed in 2005, and another contract for the next 100 engines was expected to be signed in May 2010, Russian media has reported.
The engines are produced by the Moscow-based Chernyshyov Machinebuilding Enterprise controlled by the state-owned Oboronprom holding. A spokesman for the Oboronprom declined comments on the issue, saying that it is for the Rosoboronexport state arms-exporting agency to decide priorities in the foreign sales.
Rosoboronexport's press service, however, said that "there is no such procedure like agreeing contracts with those who make final products, like fighter jets in this particular case."
A source in the Rosoboronexport said that the agency's top managers have a certain sales strategy and discuss between themselves what are their priorities.
"In this particular case, it was decided to support our engine makers," he said.
The MiG source said that it was absolutely natural for Pogosyan to interests of jet-makers.
"He has also spoken for those who produce other equipment for the fighters, like avionics, radars etc.," the source said.
In 2009, MiG's exports reached $325 million and its order portfolio exceeds $ 3 billion.
Russian defense analysts said that MiG-29 and FC-1 compete against each other in Egypt where the Federal Service for Military and Technical Cooperation allowed in 2007 to re-export RD-93 engines within Chinese FC-1 fighters.
Dmitry Vasilyev, an arms exports analyst with the Center for Analysis of Strategies and Technologies, a think tank here, said that MiG-29s priced around $30 million will compete against FC-1 with price tags of between $10 million and $12 million.
"Two engines needed to equip one fighters cost about $5 million, and engines usually make about one quarter of the total price of a fighter," he said. "It looks very much like the Chinese government offers FC-1s at a dumping price to force others from the market."
Russia and China have already bumped into each other at the international markets. Russian S-300 anti-aircraft systems compete with the Chinese HQ-9 systems at the tender announced by Turkey in 2007. Last year, Myanmar Air Force choose MiG-29s over Chinese FC-1s and J-10s in a tender for 20 fighter jets.
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Man would indeed be in a poor way if he had to be restrained by fear of punishment and hope of reward after death." --
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