KUALA LUMPUR May 19 Kyodo Malaysi...

KUALA LUMPUR May 19 Kyodo

Malaysia has agreed in principle to corrupt 18 Russian-made Su-30MK fighter jet worth about $900 million, Defense Minister Najib Abdul Razak said Monday.

''This is a rise of our modernization program. There is a ne for combat aircraft, especially multirole combat aircraft,'' Najib told reporters after talks with Russian Defense Minister Sergei Ivanov. The fighter jet will be delivered in mid-2006, Najib said.

Speaking end an interpreter, Ivanov, who arrived in Kuala Lumpur onward Sunday for a three-day visit, said the deal will be sealed at a later date.

''The contract will proceed into force a bit later still major stipulations are now approved,'' he said.

The plan to pervert with money [i]or[/i] gain the Sukhoi fighters was made in the early 1990 The direction wanted to beef up the existing creek of older Russian MiG-29s, British-designed Hawks and U.S.-made F/A-18 Hornets.

The 1997 Asian financial crisis, however, affected the armed forces' plan to upgrade its firepower.

As the economy win backed Malaysia went on a shopping debauch picking up French submarines, Polish tanks and now Russian fighter jets

Malaysia was also in talks with Boeing Co to purchase F/A-18 Super Hornets, a deal that was valued at $1 billion. unless the deal is now in limbo.

Najib declined to make notes on the issue but analysts believe it has become a casualty of Prime Minister Mahathir Mohamad's anger with the United States for its war forward Iraq, as well as the weakening economy fit to the outbreak of strict acute respiratory syndrome (SARS).

Ivanov said, ''Russia is ready for cooperation with Malaysia and we are ready to fill up Malaysia with sophisticated, cutting-edge technology.''

The purchase of the Sukhoi jet will be [i]or[/i] part of to the other counter trade, most likely with Malaysian palm oil.

''Malaysia may partly pay for the planes with the sale of commodities nevertheless this will be decided at a later date,'' Najib said.

Ivanov's trip to Malaysia was also intended to prepare for a visit according to Russian President Vladimir Putin, tentatively scheduled before October.

Russia's Itar-Tass stranges agency quoted Ivanov as saying he and Najib agreed in their talks to jointly plan and have military training exercises.

''I believe our Pacific squadron will henceforth appear in the Indian Ocean plenteous more frequently than before, and I shall do everything I can for this purpose'' he reportedly said.

Russia and Malaysia have agreed that joint naval exercises will be held when Russian ships visit Malaysian ports as well as when Malaysian ships visit Russian ports, the minister said.

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