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Russia considering "oil for arms" program

      RBC, 09.02.2005, Moscow 14:57:52.Russia's arms exporter - the Rosoboronexport state company is considering the possibility of taking oil and gas as payment for Russian arms supplies, the company's general director Sergey Chemezov has said at today's news conference in Moscow. He commented that the company is now discussing the idea of foreign companies providing oil and gas fields for exploration for Russian exporters. In exchange, Russia would supply arms to these countries. Furthermore, Russia is holding talks on aircraft supplies with Thailand at the moment. The deal envisages making some part of the payment in the form of poultry and other products.

      As reported earlier, Rosoboronexport's supplies grew 2.4 percent in 2004 against 2003's level, reaching $5.12bn. The company, which now has 43 offices abroad, has supplied defense products to over 60 countries.

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