Russia completely canceled the Algerian debt the total sum of which came up to $4,7 milliard. At the same time Algeria engaged itself to purchase industrial production to the equal or exceed sum of the debt.

An intergovernmental agreement signed during Russian President Vladimir Putin`s visit to Algeria. The cancel of debts is provided by plan, which includes the deliveries of Russian weapon in Algeria. Previously it was reported that Algeria refused to buy Russian armaments until its debt will be cancelled.

The head of Rosoboronexport Sergei Chemezov said that Russia had concluded arms deals with Algeria worth $7.5 milliard and is planning to sign other contracts worth another $2-3 milliard.

"We have signed arms contracts totaling $7.5 milliard in the last two-three months, including on deliveries of air defense systems, combat aircraft, ships and combat vehicles" Sergei Chemezov told a conference.

He said 90% of contracts were for sales of new equipment and only 10% of the deals were for the modernization and repair of equipment previously sold to the country.

"We dominate the Algerian arms market and sell military equipment only for real money," Chemezov said.

He also said Russian military equipment was as good as similar foreign equipment but 15%-20% less expensive.

"I hope we will be able to conclude new contracts worth about $2-3 milliard" the head of Rosoboronexport said.

Russian media previously reported that contracts for the delivery of 40 MiG-29SMT Fulcrum fighters, 20 Su-30 MK Flanker fighters, 16 Yak-130 Mitten combat trainers, eight battalions of S-300 PMU2 Favorite air defense systems and 40 T-90 main battle tanks had been initialed before President Vladimir Putin`s visit to the North African country.
sections: Economics, World News, Region News
areas: Central region