Russia Signs First Israeli Drone Deal

Russian media have reported the deal is worth about $50 million and that Russia will buy the drones from Israel`s largest defence firm.

Russia said on Friday it had signed a contract to buy drones from Israel, in the first such deal analysts said was aimed at strengthening the armed forces after last year's brief war with Georgia.

"We signed a contract with an Israeli firm for the delivery of unmanned aerial vehicles (UAV)," local news agencies quoted Russian Deputy Defence Minister Vladimir Popovkin as saying.

Russian media have reported the deal is worth about $50 million and that Russia will buy three different types of drones from Israel's largest defence firm, state-owned Israel Aerospace Industries (IAI).

An Israeli defence source with knowledge of the deal told Reuters the Israel Aerospace Industries sale was the first drone sale to Russia by an Israeli firm. IAI officials declined to comment.

Russia's five-day war with neighbouring Georgia last August exposed a Soviet-style army with obsolete equipment and a lack of spy drones and high-precision bombs, analysts said.

An industry source in Israel said Russian generals were impressed with the drones Georgia had bought from the Jewish state and approached the Israelis shortly after the war.

Prime Minister Vladimir Putin has said that budget cuts this year in the wake of the financial crisis will not affect planned purchases of new weapons for the armed forces.

Israel's Haaretz daily said on Friday that the deal for the drones went ahead only after Israel received clear signals from Russia that it had no intention of selling S-300 anti-aircraft missile systems to Iran.

Asked if the sale was connected to the S-300, the defence source agreed there was a link, but gave no further details.