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Rosoboronexport Sees No Obstacles to Iran Arms Deal

Rosoboronexport head Anatoly Isaikin speaking to reporters Thursday. He said sales hit a new record last year. Alexander Zemlianichenko
The state's arms exporter announced Thursday that it had set a new sales record in 2009 despite the global financial crunch and said it saw no formal obstacles to selling weapons to Iran.

Anatoly Isaikin, head of Rosoboronexport, which enjoys a monopoly on selling finished defense hardware, said his agency's 2009 revenues grew to $7.4 billion, or 10 percent more than in 2008.

"In 2010, we expect to earn no less than in 2009," Isaikin told reporters.

Rosoboronexport's revenues have soared 2.4 times since 2001, when it was established by then-President Vladimir Putin, he said.

Also, Rosoboronexport's portfolio of contracts swelled a record $15 billion last year to reach $34 billion, Isaikin said.

Warplanes and helicopters made up for half of 2009 arms exports, while hardware for land forces accounted for 19 percent, foreign navies accounted for almost 14 percent and air defense systems accounted for more than 13 percent.

India held onto its crown as Russia's top client, followed by Algeria, China, Malaysia, Venezuela and Syria, Rosoboronexport said.

Isaikin made a point Thursday of saying that Russia has a right to provide Iran with any weapon system because the Islamic Republic is not under any international arms embargo. He said the powerful S-300 air defense system that Iran covets is a defensive weapon.

Israel and the United States fiercely oppose a contract that Moscow has signed with Tehran to supply its military with S-300s, which would boost Iran's capacity to fight off possible air strikes. The contract was signed in late 2005, but no deliveries have taken place so far.

Foreign Minister Sergei Lavrov said Wednesday that Russia might support possible new sanctions against Iran that are being called by world powers to halt its nuclear program.

"It is clear that one can't wait forever, and our partners are already talking about the need to discuss further measures in the UN Security Council," Lavrov said after talks with U.S. Secretary of State Hillary Clinton in London.

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