Energy News  
Obama Facing Hard Choices In The Global Arms Business Part One

disclaimer: image is for illustration purposes only
by Nikita Petrov
Moscow (UPI) Nov 12, 2008
The United States has elected its first African-American president, Sen. Barack Obama, D-Ill. President-elect Obama will have little time to celebrate as he prepares to select his Cabinet and further lay out the country's policies for the next four years. Meanwhile, the current administration is leaving quite a legacy for Obama to deal with.

One such "legacy" is two-year sanctions imposed last week by the U.S. Department of State on several countries and organizations accused of violating the 2000 Iran Non-Proliferation Act.

The act bans cooperation with Tehran on weapons of mass destruction. The sanctions were again applied to Rosoboronexport, Russia's only state arms exporter, which has been charged, without grounds, of such cooperation. American companies, organizations and even individuals are prohibited from dealing with it, its subsidiaries or partners.

In response, Rosoboronexport said the sanctions will not affect its work, because it does no business with American partners. On Nov. 4 Russian President Dmitry Medvedev, speaking at a military technical cooperation commission meeting, said Russia "considers such sanctions unwise."

"These are unfair practices, an attempt to push aside other suppliers, but these sanctions will not hurt us, so those who impose them should bear this in mind," he said. Medvedev said Russia's defense order total had "increased markedly" and now stood at more than $30 billion.

Medvedev's words have been echoed in the U.S. Congress. Russia is still the world's second-largest arms exporter, according to a report prepared by American experts for the Congress. In 2007, according to the report, Moscow sold arms worth $10.4 billion and accounted for 17.4 percent of all weapons supplied in the world. A similar report, published a year ago, estimated Russia's supplies at that time at $8.1 billion. The main buyers of Russian weapons are India and China.

Of late, says the report, Russia has been setting its sights on North Africa, the Middle East and Southeast Asia. Not so long ago, for the first time since the Cold War, it tried to enter the Latin American market. Moscow now has a large client base there, having concluded arms contracts with Venezuela. Because of their low prices, Russian weapons will be in steady demand in some developing countries for a long time to come, the report says.

The United States, however, is still the leader. In 2007 it concluded arms supply contracts worth $24.8 billion, or almost twice as much as the previous year, when U.S. exports were estimated at $16.7 billion. America exports 41.5 percent of all legal arms.

American weapons manufacturers are not enthusiastic about competition with the Russian defense sector and are doing everything possible to prevent them from increasing supplies abroad. The sanctions will not harm Rosoboronexport's efforts, however. The main purpose of this demonstrative move, some analysts say, is not so much to complicate life for Russian exporters as to saddle a new administration with new irritants between the White House and the Kremlin, irritants that will be difficult for President Obama to remove.

(Part 2: Resolving the long deadlocks on strategic nuclear treaties)

(Nikita Petrov is a Russian military analyst. This article is reprinted by permission of RIA Novosti. The opinions expressed in this article are the author's and do not necessarily represent those of RIA Novosti.)

-- (United Press International's "Outside View" commentaries are written by outside contributors who specialize in a variety of important issues. The views expressed do not necessarily reflect those of United Press International. In the interests of creating an open forum, original submissions are invited.)

Share This Article With Planet Earth
del.icio.usdel.icio.us DiggDigg RedditReddit
YahooMyWebYahooMyWeb GoogleGoogle FacebookFacebook



Related Links
The Military Industrial Complex at SpaceWar.com
Learn about the Superpowers of the 21st Century at SpaceWar.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


Betting On Chavez To Buy Lots Of Guns Part One
Washington (UPI) Nov 12, 2008
Venezuela has bought $4.4 billion worth of weapons from Russia over the past four years. And despite the collapsing global price of oil, Venezuela's weapons planning top general has announced it is going to buy lots more.







  • Analysis: Chad exemplies oil corruption
  • Analysis: Ecuador wants steady oil flow
  • October OPEC Oil Output Reduced
  • ConocoPhillips and CleanFUEL USA Launch Program To Increase Propane Fueling Sites

  • GEI Consultants Completes Site Work At Proposed New Nuclear Plant
  • Nuclear waste arrives at German dump after fierce protests
  • German riot police break up nuclear protest
  • IAEA inspectors at Bulgaria's Kozloduy plant for reactor checks

  • Global Methane Levels On The Rise Again
  • Measuring The Weight Of Ancient Air
  • On Rocky Mountain Beetle Kill Could Impact Regional Air Quality
  • An Explanation For Night-Shining Clouds At The Edge Of Space

  • Nobel winner urges protection for key forests in UN talks
  • Brazil sees carbon market saving Amazon
  • Living fossil Helps Predict Rainforest Future
  • Charles presents forest plan to Indonesian president

  • GM crops found to affect reproduction in mice: Austrian study
  • Praesidian Capital Investors Funds Acquisition Of Bruce Seed Farm
  • China wants to make bricks from toxic milk: report
  • Farmers Still No Closer To Understanding CPRS Impacts On Agriculture

  • Troubled GM says it is profitable in China, will continue to invest
  • Fill her up please, and make it myco-diesel
  • EU nations agree to push back CO2 auto limits to 2015
  • Car-crazy Germany plans tax relief for 'green' automobiles

  • China's air show saw four bln dollars in deals: report
  • China plane-makers take first steps to rival global giants
  • Aviation giants look to China amid global turbulence
  • Boeing sees China buying 3,710 planes over next 20 years



  • The content herein, unless otherwise known to be public domain, are Copyright 1995-2007 - SpaceDaily.AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement