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A Russian government delegation has arrived in Dhaka to finalize the cost to the Bangladesh government for purchasing 24 advanced jet trainer fighters and six helicopters for the Armed Forces Division, officials said.
Bangladesh has a difference of opinion with the Russian authorities about the appropriate rates for the fighter planes.
The local negotiation committee, led by a Bangladesh air vice-marshal and includes representatives from different ministries, is holding the view that the price quoted by the Russians was over-priced by $200 million.
Moscow wanted $23.5 million for each of the fighter plane Yak-130, said a member of the local negotiation committee on condition of anonymity. He said the local negotiation committee assessed that the price should be $15 million for each plane.
The visiting delegation, which arrived in the capital on September 1, comprises officials from Rosoboronexport, the sole Russian state intermediary agency for export and import of military arms and services.
The visitors are expected to stay in Dhaka for two weeks in order to settle the differences not only about the price of the planes but also deals on other defence equipment which are being purchased under the $1 billion suppliers credit from Russia.
This includes the price of five Mi-171s and one Mi-17-1 helicopters which the Bangladesh authorities consider should be altogether $79.2 million.
Moscow is, however, demanding around $100 million for the six helicopters.
Both the sides are also expected to fix the value of 480 anti-tank missiles.
Early this year, Bangladesh signed a deal with Russia involving a $1 billion loan at 4.5 per cent interest against which the country would buy Russian-made military hardware.
At a press conference on January 23, 2013, Lieutenant General Abu Belal Muhammad Shafiul Huq, Air Vice Marshal Abu Esrar and Major General Abdul Matin told reporters that purchase of fighter aircraft and choppers were major components of the arms deal.
The present purchase deal is the biggest ever arms contract between the two countries.
Bangladesh had procured eight MiG-29 fighter jets from Russia at $124 million during the 1996-2001 tenure of the Awami League government.
In relation to that purchase, the Prime Minister Sheikh Hasina had been indicted by a court for alleged corruption, but the case was later quashed.
Armed forces division officials said that the involvement of a committee comprising representatives of different ministries in negotiations with the Russian side over the last two years had ensured that the present arms deals was transparent.
They said the loan repayment period is in 20 installments over a 10-year period starting from April 15, 2018.
The payment will be made through the annual budgetary allocation given to the armed forces division.
Bangladesh has a difference of opinion with the Russian authorities about the appropriate rates for the fighter planes.
The local negotiation committee, led by a Bangladesh air vice-marshal and includes representatives from different ministries, is holding the view that the price quoted by the Russians was over-priced by $200 million.
Moscow wanted $23.5 million for each of the fighter plane Yak-130, said a member of the local negotiation committee on condition of anonymity. He said the local negotiation committee assessed that the price should be $15 million for each plane.
The visiting delegation, which arrived in the capital on September 1, comprises officials from Rosoboronexport, the sole Russian state intermediary agency for export and import of military arms and services.
The visitors are expected to stay in Dhaka for two weeks in order to settle the differences not only about the price of the planes but also deals on other defence equipment which are being purchased under the $1 billion suppliers credit from Russia.
This includes the price of five Mi-171s and one Mi-17-1 helicopters which the Bangladesh authorities consider should be altogether $79.2 million.
Moscow is, however, demanding around $100 million for the six helicopters.
Both the sides are also expected to fix the value of 480 anti-tank missiles.
Early this year, Bangladesh signed a deal with Russia involving a $1 billion loan at 4.5 per cent interest against which the country would buy Russian-made military hardware.
At a press conference on January 23, 2013, Lieutenant General Abu Belal Muhammad Shafiul Huq, Air Vice Marshal Abu Esrar and Major General Abdul Matin told reporters that purchase of fighter aircraft and choppers were major components of the arms deal.
The present purchase deal is the biggest ever arms contract between the two countries.
Bangladesh had procured eight MiG-29 fighter jets from Russia at $124 million during the 1996-2001 tenure of the Awami League government.
In relation to that purchase, the Prime Minister Sheikh Hasina had been indicted by a court for alleged corruption, but the case was later quashed.
Armed forces division officials said that the involvement of a committee comprising representatives of different ministries in negotiations with the Russian side over the last two years had ensured that the present arms deals was transparent.
They said the loan repayment period is in 20 installments over a 10-year period starting from April 15, 2018.
The payment will be made through the annual budgetary allocation given to the armed forces division.