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. Last Updated: 07/27/2016

Report: China in $300M Engine Deal

Jet engine-maker Salyut agreed to deliver 100 engines to China's air force in a $300 million deal signed last week, Kommersant reported Monday.

The engine used in Russia's best selling Sukhoi fighter jets will be installed on China's J-10 light fighter, Salyut general director Yury Yeliseyev told the business daily.

"This is a new contract with China. We will deliver 100 Al-31FN engines to the customer over the next two years," he said.

Moscow-based Salyut refused to elaborate on the contract on Monday, as did Rosoboronexport, Russia's arms selling agency.

Russian arms export deals are traditionally sensitive, and those with China are ranked as state secrets.

Last year, 54 Al-31FN engines were delivered to China for use in J-10 jets, said Konstantin Makiyenko, deputy head of the Center for Analysis of Strategies and Technologies.

The Salyut deal marks Russia's third engine contract this year, he said.

In April, Rosoboronexport signed a $267 million agreement with Beijing to deliver 100 RD-93 engines to equip China's new FC-1 single-engine fighters.

Late last month, engine-maker Saturn signed a deal with India to deliver new Al-55 engines to India for installation on HJT-36s trainer jets.

Some 1,000 such engines are to be produced at the facilities of Hindustan Aeronautics under a license agreement.

Makiyenko said that the two engine deals with China -- Russia's No. 1 weapons client -- were revitalizing the bilateral arms trade.

"This year's engine deals also demonstrate that our main clients are walking away from buying Russian jets and instead opting for engines that they can fit on their own products," Makiyenko said.

Last year, according to the Center for Analysis of Strategies and Technologies, Russian engine makers earned $986 million.

Aircraft exports have dominated in Russia's arms sales over the past few years. In 2005, however, Rosoboronexport expects naval weapons to account for more than 50 percent of sales, officials have said.