The arrest of Deputy Finance Minister Sergei Storchak, on the photo, may frustrate efforts to sell armaments to Libya.
Photo: Sergey Mikheev
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Storchak’s Arrest Threatens Contract with Libya
The contracts for 12 newest Su-35 fighters, Tor-M2E missile defense systems and for maintenance of previously supplied weapons have been elaborated for Putin’s visit to Libya that begins April 16. But the arrest of Deputy Finance Minister Sergei Storchak may frustrate the efforts to sell armaments to that country.
Russia’s Finance Minister Alexei Kudrin warned enforcement bodies far back in November of 2007 that the detention of Sergei Storchak would disrupt negotiations on payment of the USSR debt to Russia.
Libya’s debt stands at $3.5 billion, according to the estimate of the RF Finance Ministry. In 1990s, however, Libya claimed Russia owed a few hundred million dollars to Libya. The amount had been transferred to Moscow as an advance payment for armaments’ supplies, which were never effected as the U.N. imposed sanctions on Libya in 1992.
The problem of debt settlement will be raised in time of Vladimir Putin’s visit. The contract will be inked if the parties manage to agree on the debt.
Storchak was arrested in late 2007 on suspected misappropriation of over $40 million of budget money. He hasn’t admitted the guilt so far and Finance Ministry insists that the respective deal was transparent enough.
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