MOSCOW, January 13 (RIA Novosti) - Russia's Air Force will receive later this year 34 modern MiG-29 SMT and MiG-29 UBT fighter jets that Algeria refused to accept under an earlier contract, a Russian Defense Ministry source said on Tuesday.

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 cooperation agreement.

However, after receiving 15 MiG fighters, Algeria refused further deliveries in May 2007. It then froze all payments under contracts with Russia in October 2007, requiring that Moscow first take back the 15 MiG-29s due to their "inferior quality."

The aircraft were eventually returned to Russia last April.

Some Russian media sources reported that Algeria had asked Russia to deliver 14 to 16 Su-30 Flanker fighters in exchange for the MiG-29 Fulcrum aircraft it was supposed to receive under the contract.