Russia to vie with U.S. for Indian arms market

By Vladimir Radyuhin

MOSCOW, NOV. 6. Russian arms dealers are bracing to face competition with the U.S. on the Indian market as the lifting of American restrictions on hi-tech defence exports to India appears imminent.

A top Russian arms exporter said his company was ready to fight for the Indian market. ``It is a challenge to us and we'll have to work hard to be up to it,'' said Mr. Andrei Belyaninov, head of the Russian arms export monopoly, Rosoboronexport.

Russia hopes to take advantage of the lower prices on its military hardware. Mr. Belyaninov said Russia's Sukhoi aircraft manufacturers offered SU-30 strike fighters at half the price Lockheed-Martin charges for similar planes. Also, Russia counts on the traditional reliance of India on Russian equipment, which accounts for over 70 per cent of the Indian armed forces inventory.

``India is our strategic partner and our cooperation covers the entire range of weapon systems for aviation, navy and ground forces.''

The Defence Secretary, Mr. Yogendra Narain, who accompanies the Prime Minister, Mr. A.B. Vajpayee, on a visit to Russia, is likely to have extensive discussions with Russian arms exporters on the ongoing and prospective defence deals. Last week Russian officials voiced the hope that at least one deal - on the lease of four TU-22M3 strategic bombers - would be signed during the visit.

Mr. Narain is bound to take up with the Russian side the issue of streamlining acquisition of spare parts to Russian- made weapons. India has been complaining of unfair prices for Russian spare parts and pushed for access to the original equipment manufacturers instead of dealing with intermediary agencies.

Russian officials are expected to inform Mr. Narain that in response to Delhi's request the President, Mr. Vladimir Putin, will shortly sign a decree authorising major Russian arms manufacturers to supply spare parts directly to foreign customers.

However, Russian arms dealers argue that part of the problem lies with the Indian policy of holding open tenders for the supply of spares to Russian hardware.

``It makes no sense to pick suppliers of spare parts at an auction,'' said Mr. Alexander Vaskin, head of the Indo- Russian Security Forum think-tank. ``When India needs spares for Hunter and Mirage jets it goes straight to British Aerospace and Dassault, but in the case of Russian equipment it opens tenders. The original manufacturer cannot guarantee safe operation of its equipment if spare parts for it are sourced elsewhere.''

Also, in many cases a centralised system of product support is more effective in specific Russian conditions than direct access to manufacturers.

``Components for the SU-30 fighters are manufactured at over 300 Russian factories, many of which have no foreign- trade experience,'' Mr. Vaskin said. The Russian expert pinned hopes on a recently-established subsidiary of Rosoboronexport - Prompostavka - which will specialise in product support for Russian-made military hardware.

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