Russia has blocked the sale of 100 engines to China for its FC-1 fighter jets amid pressure from Russian domestic fighter jet manufacturers who fear a market loss due to increased competition. Russian newspaper Kommersant quoted a military industry source as staying that "the new contract with China for the sale of 100 RD-93 engines has not been signed." Kommersant also said General Director of Sukhoi Design Bureau and Russian Aircraft Corporation (RAC) MiG, Mikhail Pogosyan, was the prime opponent of the deal, as he believes the FC-1 is a direct rival of the Russian MiG-29 fighters in several foreign markets. The FC-1, also known as the JF-17 Thunder, is a single-engine and lightweight multi-role fighter developed by the Chengdu Aircraft Industrial Corporation of China and the Pakistani Air Force. China sold the FC-1 to Pakistan under the inter-governmental bilateral agreement which allowed China to re-export the RD-93 engines to the global market as part of the FC-1 fighters. Although Russia's MiG-29 offers better performance, the FC-1 is challenging it in the market with a unit price of $10 million, versus its rival's $35 million. Russia is negotiating with Egypt in the hope of closing a deal for 32 MiG-29 fighters, as Egypt also holds talks with the manufacturers of the FC-1. Jane's Defense Weekly said that the Egyptian government started the negotiations with Pakistan in March, saying Cairo hopes to equip the country's air force with the Chinese fighters. Kommersant said that Russia has supplied 100 RD-93 engines to China under a $238 million deal signed in 2005. And a framework agreement for the sale of 500 such engines for the Sino-Pakistani joint fighter was also signed then. |