Exclusivity of Russian Arms Deals

Sharon Weinberger at Wired takes the US government to task over news of a no-bid contract. The question is how ARINC, a Maryland subsidiary of the Carlyle Group, was awarded $500 million as the sole broker Russian Mi-17 military aircraft for Iraq and Afghanistan. The details are interesting, and perhaps a scandalous investigation will ensue, but I especially appreciated reading the conclusions on culture and fraud:

In the meantime, here’s a bit of free advice for the Pentagon about buying Russian weapons: The first guy that shows up at your door waiving an exclusive agreement is also the first guy you should boot out of your office. The Russians don’t really give exclusive agreements to American companies, they sell helicopters. Sorry, you’ve been had, not just by the Russians, but by the Americans, too.

And here’s a tip for ARINC on Russian business culture: The same guys who gave you that nifty piece of paper claiming you were the one and only company authorized to buy the helicopters are the same guys that you have to trust to actually deliver the helicopters after you’ve paid for them. And no, drinking shots of Stoli with the Russians after you sign the paperwork doesn’t really make you lifelong brothers. Next time pay on delivery.

And hey, if they don’t think that’s funny, trust me, the Russians do.

The US government is buying Russian helicopters made in Ulan Ude instead of American aircraft? The Russians must find that funny too.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.