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“Contract of the century” melted away like a Mirage in the desert

«Контракт века» растаял как мираж в пустыни

It seemed that the Firebird is another “contract of the century” already trembled in the hands of Lockheed Martin. But the sweet anticipation of happiness was short-lived. The desired transaction was pending. More – over it a sword of Damocles complete collapse.

Back a year ago. In late January of last year the American media, choking with delight, reported that Riyadh in the framework of the Saudi Naval Expansion Program II (SNEP II) ready to make Washington a contract for the purchase for the Navy of the Kingdom of warships and other naval equipment worth over $16 billion.

It was about the purchase of four missile frigates with a displacement of 3500 tons, twelve corvettes to 1150 t and 24 patrol boats, and weapons for them, including ten anti-submarine helicopters MH-60R Sea Hawk.

All of them were intended for the replenishment of Eastern fleet, operating primarily in a narrow Gulf separating Saudi Arabia from Iran, with whom relations can not be called friendly.

The Pentagon and the headquarters of the American military-industrial corporations review the application, all counted and reported that to meet the $16 billion does not work. The approval of the U.S. military, the deal can “weigh” not less than $20 billion So to say, the Americans raised the stakes, hoping that the Saudis will never skimp on the weapon.

Suffice it to recall that in 2010 Saudi Arabia has awarded US a long-term contract at $60 billion for the supply of 84 F-15 fighters and upgrade 70 more fighters of this model, consisting on arms of the air force of the Kingdom, as well as the acquisition of a 70 attack helicopters AH-64D Apache Longbow Block III and 72 Sikorsky transport helicopters

UH-60M Black Hawk. In 2014 Riyadh make a deal with the British Corporation BAE Systems for the purchase of 72 Eurofighter Thypoon fighter planes for $7.2 billion

In 2014, military spending in Saudi Arabia amounted to a record $80 billion This middle Eastern neftegorska ahead of defense spending the United Kingdom and France. Therefore, Washington felt that even at the beginning of the fall in oil prices to $80-70 per barrel, Riyadh will find the funds to ship the transaction. Especially since the war for lower prices on black gold has unleashed this middle Eastern Kingdom, in order to put on the knees of their competitors in world markets.

The lion’s share of the costs in the transaction accounted for four of the frigate. They are designed on the basis of the so-called littoral combat ships (Littoral Combat Ship – LCS) – LBK, which is now classified in the American Navy as frigates. The history of this project is interesting and instructive.

Have not had time to go on the water the hull of the first American LBK, called Freedom, as work started on its export version. Lockheed Martin is heading a group of companies involved in this project, in December 2005, entered into an agreement with Israel on the two-year program of research to develop LCS based on similar vehicle for the needs of the naval forces of that country – LCSI (Littoral Combat Ship – Israel).

«Контракт века» растаял как мираж в пустыни
Versions of the corvettes and frigates length 85, 118 and 150 m on the basis of LBC type of Freedom.

Such efficiency by the American companies was due to the fact that the U.S. has long lost its status as the leader of the world market of military shipbuilding. And then came the opportunity to take revenge, offering foreign partners a warship of the new generation, with interchangeable weapons, high speed (over 40 knots) and “enabled” in network-centric information system.

Having invested several million dollars in the LBC version, adapted to the needs of the Navy of Israel, tel Aviv refused to build these ships due to the high cost and inconsistency of their characteristics to the requirements of the Navy of the Jewish state. (Now in German shipyards for the Israel Navy in the total amount of 430 million euros, of which one third will pay the Federal government, construction of four Korvet-type MECO 80 – Saar 6 with a displacement of 2000 tons – approx. of the author).

Lockheed Martin efforts for the promotion of LCSI naval forces of Israel attracted the attention of other States, including Saudi Arabia. Here, however, there was a tricky situation with the last letter of the abbreviation LCSI. It is easy to guess that the letter “I” which stands for “Israel”, could not hold the Saudis and leaders of other Islamic States.

But specialists marketing services Lockheed Martin quickly found a solution, stating that “I” does not mean “Israel”, “International”, that is “international”.

However, apart from the linguistic and related political issues the authors of the project in discussions with potential customers of the future shape of the ship were experiencing difficulties of a different kind.

While at the Pentagon and the headquarters of the American military-industrial companies rubbing their hands in anticipation of upcoming deals, Riyadh has remained silent. And now, at the beginning of this year it became known that Saudi Arabia is not in a hurry to make a deal and is even thinking about refusing it.

It was announced that the Navy of the Kingdom of the middle East are not satisfied with “price and the construction schedule” frigates. Indeed, if the cost of the Assembly serial LBK type of Freedom have been cut by more than $100 million and increase to $440 million per unit, Saudi ships will cost no less than $1.5-2 billion And the first building Lockheed Martin promises to deliver in seven years after signing the contract.

In fact, the time and cost of execution of the transaction is very significant. But there are certainly other reasons that prompted the Saudis to show restraint.

Firstunleashed er-Next war to reduce oil prices today, the boomerang has hit the Kingdom. Saudi Arabia was forced in 2016 to drastically cut spending its budget on “defence and security” – by 30.5%.

For these purposes will be allocated only EUR 213.4 billion Saudi riyals (about $56,8 billion) – against 307 billion riyals ($81.9 billion) in 2015. In these conditions, more than odinnadtsatimetrovy contract MMSC seems overwhelming, and hope to execute it melt away like a Mirage in the Arabian desert.

Secondly, the American state Department came a bit late, making a statement about a possible deal October 19. Just two weeks before – on October 7 – the ships of the Caspian flotilla of the Russian Navy dealt a crushing blow 3М14 cruise missiles “Caliber-NK” on objects, not the terrorist organization “Islamic state” in Syria.

The ships in which they started, are at times less American MMSC, and their combat effectiveness is several times higher.

«Контракт века» растаял как мираж в пустыни

Small missile ship project 21632 “Tornado”. The displacement 560 tons, the speed is 26 knots. It carries four cruise missiles “Yakhont” or Club-N, 100-mm automatic cannon A-190, two six-barreled 30 mm AK-630M, 1×4 launcher 3М47 “Flexible” with missiles “Igla” or “Igla-M”, two large-caliber machine gun.

In Riyadh have realized that any potential enemy in the Persian Gulf, say the same of Iran, having bought in Russia’s small missile ships of project 21632 “Tornado” or missile-artillery boat project 12300 Scorpion, armed with the missile system Club-N – the export version of the same “caliber” and supersonic anti-ship missiles “Yakhont” will not only protopic all MMSC, but also will cause great damage to coastal facilities of the Kingdom.

To pay very big money for ships that cannot defend themselves and the country, makes no sense.

The media has reported that Riyadh is negotiating with Spanish shipbuilding company Navantia about the Assembly at its shipyards to the Eastern fleet of the Kingdom of the five corvettes type Avante 2200 is powered patrol ships type Guaiquer, built a few years ago a Spanish firm for the Navy of Venezuela.

According to the Spanish newspaper La Voz de Galicia, the Corvette will have a total displacement of 2500 tons, maximum speed – 25 knots, cruising range at 15 knots is 5,000 miles, autonomy – 21 days. Its armament will consist of two twin launchers for ashms, SAMS in RVA for eight missiles, one 76-mm OTO Melara gun, two triple tube anti-submarine torpedo tubes. The chopper 10-ton class will be placed in the hangar. Of course, this is not stranded MMSC. But, in any case, not unreasonably expensive.

Made hints that the clever Saudis deliberately started the negotiations with the company Navantia, in order to induce the Americans to radically reduce the cost of the “deal of the century”. Can be. But no MMSC or Avante 2200 from the Club and missiles “Yakhont” will not run away.

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