Article Posted on : - Oct 14, 2010

Mr. Itzhak Nissan (right) and Mr. Andrey Reus sign the agreement. Photo: IAI

TEL AVIV (BNS): Israel Aerospace Industries has signed a UAV assembly elements and services agreement with Russian defence firm Oboronprom on Wednesday.

“The deal will begin to be implemented during 2011,” according to the company statement.

The contract was signed in the presence of Israel Aerospace Industries (IAI) CEO, Mr. Itzhak Nissan and the Director-General of the Oboronprom Russian Industrial Corporation, Mr. Andrey Reus.

The financial details of the deal have not been disclosed, but Israeli media earlier speculated that the three-year contract could be worth $400 million.

“This is a huge step towards deepening cooperation between IAI and Russian industry. This agreement will also strengthen the bilateral relationship between Israel and Russia. IAI is proud that Russia has chosen IAI technologies and products, and we are pleased to be able to cooperate in this way,” Mr. Itzhak Nissan,Israel Aerospace Industries (IAI) CEO, said.

"We hope to expand our joint relationship to include additional areas such as the commercial market and green energy sector," he added.

Russia has already received a two Bird Eye 400 systems (worth $4 million), eight I View MK150 tactical UAVs ($37 million) and two Searcher Mk II multi-mission UAVs ($12 million), from Israel under a $50 million contract signed in April 2009.

Israel and Russia are currently negotiating the establishment of a $300 million joint venture to develop and produce UAVs in Russia.