India and Russia have signed a $ 500 million deal for the swapping of 18 Sukhoi fighter jets in service with IAF for the latest version of air superiority multi-role warbirds tailored to meet Indian requirements.

“Rosoboronexport has signed a $500-million contract with India for the delivery of 18 Su-30MKI fighter jets and the purchase from it of 18 used Su-30K planes at a price that reflects their resale value,” business and political daily Kommersant reported today.

The contract has been under negotiation since the end of 2005 and it would make it possible to conclude one more contract for $1.6 billion, the daily said.

Aircraft Corporation Irkut, the manufacturer of Sukhoi aircraft for India took a bank credit in advance to build the new fighter jets for the IAF and has already produced 12 of 18 warbirds. The remaining planes may be completed by the end of this year.

With that deal complete, negotiations can be resumed over the delivery of an additional 40 kits for the licensed assembly of Su-30MKI models in India, the daily reported.

Although the arms exporting monopoly agency “Rosoboronexport” has declined to confirm the report it is believed that Su-30K planes from India may be resold to Russia’s friendly nations in “conflict prone” regions like African horn, Southeast Asia or the Arabian peninsula, who have “modest means”.

Under the multi-billion dollar deal, 18 Su-30K planes were delivered to India between 1997 and 1999 when Russia’s Sukhoi Corporation had started the development of its MKI version, claimed to be the only multirole fighter of its type in the world with thrust vectoring engines.

According to Kommersant, IAF’s Su-30K have an average record of about 1500 flying hours and require an overhaul and upgradation costing USD 12 million per aircraft. While a new Su-30 MKI costs $40 million.

It writes that the 18 used fighters of IAF were originally planned to be purchased last year for resale to Belarus.

Unofficial sources say the planes may have been intended for sale to Syria or Eritrea through Belarus. That deal fell through when Russia and Belarus came into conflict over the price of Russian natural gas,

However, last month, Minsk denied that Russian weapons were being resold through Belarus to the Middle East.

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