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Central Asia

Turbulence in Russia's Uzbek ties
By Sergei Blagov

MOSCOW - Russia's attempts to forge closer economic integration with the former Soviet states in Central Asia have hit a roadblock, as Moscow has decided to move the production of its Ilyushin Il-76 cargo jet from Tashkent, Uzbekistan, to Voronezh in Central Russia.

The Tashkent Aircraft Plant (TAPO) is one of the largest industrial outlets in Uzbekistan. The government-controlled TAPO employs a workforce of 30,000 and is headquartered outside of Tashkent. Initially established in 1932 in the Moscow suburb Khimki, the TAPO was relocated to Uzbekistan in 1941, as German troops approached during World War II.

When Russia moved to create the Ilyushin production complex in January 1997, it was supposed to include the Ilyushin design bureau in Moscow, the Voronezh Aircraft Plant, and the TAPO. Uzbek authorities reportedly agreed, but requested US$300 million in exchange for putting the country's largest plant under Russian control. However, although the TAPO was assembling the main cargo aircraft used by the Russian air force, Moscow found the asking price unreasonable and refused.

Yet in the wake of the TAPO's successful export contracts to sell the Il-76 and Il-78, Uzbekistan reportedly decided to retain control over the TAPO. When Russian President Vladimir Putin visited Uzbekistan in August, Uzbek President Islam Karimov reportedly ruled out privatization of the TAPO. Prior to the summit, the Uzbek government had stated that in any event it would keep a controlling 51 percent stake in the TAPO.

Meanwhile, Uzbekistan is now charging Russia's defense ministry nearly $40 million per one Il-76MF, an exorbitant price for a plane designed in Russia, basically being assembled from Russian-made spare parts. Subsequently, Moscow has reportedly decided to move ahead with Ilyushin production in Russia without the Uzbek plant.

Russia plans to start production of Il-76MF in 2005, Viktor Livanov, deputy head of the Ilyushin production complex, was quoted as saying by the Izvestia Daily.

The Russian government reportedly allocated funds to relocate the production in 2004. The total relocation costs have been estimated at $300 million by Russia's defense ministry, $130 million by the Ilyushin and $1 billion by the TAPO.

So far, some 500 Il-76 aircraft have been produced since it entered service with the former Soviet air force in 1974. The Il-76 four-engine cargo jet is also known by its North Atlantic Treaty Alliance codename "Candid". There are several design variants, including the basic Il-76, Il-76M, Il-76MD and the Il-76MF. The Il-76M version is roughly the same as the Il-76, but has a maximum payload of 47 tons, compared to 28 tons for the Il-76. The Il-76MF aircraft is a derivative of the Il-76MD, with the fuselage lengthened by nearly seven meters, while the flight range is increased by over 20 percent.

Since the mid-1970s, the Il-76 aircraft became a predominant cargo plane of the former Soviet's army and later on for the armed forces of the new independent states.

The aircraft also became an export item. The Chinese air force ordered 14 Ilyushin Il-76s in the 1990s. These planes are reportedly operated by the 34th Air Division based in the Nanyuan Airbase near Beijing. There have been reports on further negotiations between the TAPO and China on a possible purchase of additional batches of Il-76s.

The Il-76s have also been sold to other Asian destinations. For instance, India has reportedly chosen the Il-76 as the platform for the three Israeli-made Phalcon AEW (airborne early warning) systems.

In addition to the Candid, other versions of the aircraft include the A-50 Mainstay AEW platform, and the Il-78 Midas aerial refueling tanker developed in the early 1980s. The former Soviet Union's only operational Il-78M regiment was based in Ukraine, which retained the aircraft after declaring independence in 1991. Only a limited number of Il-78Ms remained in Russia.

In March 2002 it was reported that the TAPO clinched a deal to sell three Il-78 tankers to India. Negotiations over delivery of an undisclosed number of Il-78s to China for some $30 million apiece have also been reported. So far, some 50 Il-78 aircraft have been produced at the TAPO.

Theoretically, there have been positive signs recently for increased economic cooperation between Russia and Uzbekistan. Moscow and Tashkent have been discussing prospects for expanding bilateral economic cooperation, notably the export of Uzbek cotton and natural gas and for a bigger role for Russian companies in exploring oil and gas deposits in Uzbekistan.

Moreover, earlier in October, Uzbekistan fulfilled its currency-convertibility obligations to the International Monetary Fund. Uzbekistan is moving towards full currency convertibility of the national currency, the som, which would facilitate foreign trade, including economic ties with Russia.

On the other hand, in the past two years, Moscow has been wary of Tashkent. The United States was granted clearance to use a large military base at Khanabad in order to carry out the continuing "war on terror" in neighboring Afghanistan. Uzbekistan's decision to let the Pentagon use Khanabad, one the largest former Soviet air bases in Central Asia, followed the $500 million annual aid package from Washington.

During the late Soviet era, the Khanabad base served as a logistics support facility for the Soviet army's ill-fated 1979-89 occupation of Afghanistan, while the Il-76s were main vehicles of the invasion.

Moscow has argued that the US military bases in Central Asia were temporary facilities to support international peacekeepers in Afghanistan, with a United Nations mandate, and should be removed as soon as the Afghan anti-terrorist operation ends.

(Copyright 2003 Asia Times Online Co, Ltd. All rights reserved. Please contact content@atimes.com for information on our sales and syndication policies.)
 
Nov 1, 2003





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