"We have not officially terminated the contract with Algeria. We are hoping that Russia's Defense Ministry will make a final decision on this matter," said Alexey Fyodorov, the UAC president.
Russian arms export monopoly Rosoboronexport had signed a $1.3 bln contract to deliver 29 one-seat MiG-29SMT fighters and six two-seat MiG-29UB fighters to Algeria in March 2006 as part of an $8 billion military-technical cooperation agreement.
After receiving 15 MiG fighters, Algeria began refusing further deliveries in May 2007. It froze all payments under military contracts with Russia in October 2007, requiring that Moscow first take back 15 MiG-29s due to their "inferior quality."
The aircraft were eventually returned to Russia in April this year and may be put in service with the Russian Air Force after additional testing.
Some Russian media sources reported in May that Algeria had asked Russia to deliver 14-16 Su-30 Flanker fighters in exchange for the MiG-29 Fulcrum aircraft it was supposed to receive under the contract.
Under a 2006 contract, worth about $2.5 billion, Russia's Irkut corporation, which like MiG is part of the UAC, is supposed to deliver a total of 28 Su-30MKA fighters to Algeria until 2010. The company has supplied six aircraft so far.
