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Russia Invests In Sukhoi Aircraft

The Russian Federation signed a contract worth over $2.5 billion dollars to purchase sixty-four advanced Sukhoi aircraft. The contract will purchase forty-eight SU-35S, twelve SU-27M and four SU-30M2 aircraft. The contract was so important that Prime Minister Validimir Putin himself announced it.

This is the largest public contract since the fall of the Soviet Union and will lay the foundation for the modern Russian Air Force. In order to complete the deal by 2015 the Russian government is granting Sukhoi money as well as providing financing to begin the production.

Sukhoi has had some success in selling these aircraft to foriegn countries and like every other major defense contractor hopes to do more of such business.

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Defense corruption in Russia

October 15, 2008 by · Comment
Filed under: Contract Awards, crime, development program, IT, Russia 

The Russian Ministry of Defense announced that contract fraud was perpetuated on the Russian government through manipulation of contract evaluation and awards. The Ministry had contracted with the state owned 26th Central Scientific Research Institute to manage a security software system. The Research Institute awarded the contract to a company that turned out to be made up of people on the contract evaluation board. Up to 20 M rubles may be involved in this case where little or no work was done and the money was moved around via false contracts. In the US when a Source Selection Evaluation Board (SSEB) is established all the members are investigated for such conflicts, although there have been cases of outright bribery of members for a favorable contract award.

For more see Komersant’s website.

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