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FINANCIAL NEWS
Iraq scraps USD4.2b Russian arms deals over corruption
11 Nov 2012
(MENAFN) The Iraqi government decided to cancel USD4.2 billion arms deals with Russia over suspected corruption, Reuters reported.
Ali al-Moussawi, a spokesman for Prime Minister Nuri al-Maliki said the government still plans to renegotiate the agreements to help equip its armed forces.
The deals would have made Russia the second largest military supplier to Iraq after the US which has sold Baghdad billions of dollars in arms including F-16 fighters and tanks since the 2003 invasion.
Iraq lacks aerial defence system since the fall of Saddam Hussein, and is in dire need for aircraft fleet to help defend its airspace and borders.
The Russian newspaper Vedomosti reported earlier this year that the Russian deals included 30 Mi-28NE combat helicopters and 42 mobile rocket launchers.
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