TEL AVIV, Israel, June 14 (UPI) -- Negotiations between Israel Aerospace Industries and Moscow on setting up a $300 million-$400 million factory in Russia to produce aerial drones have stalled because Israel government officials are reluctant to provide Moscow with such valuable technology, Haaretz reports.
The United States, which also has no wish to see the Russians get their hands on such advanced military capability, has also sought clarification on the proposed venture.
The Israel media has reported in recent weeks that that state-owned IAI, flagship of Israel's defense industry, also wants to sell Russia an unspecified number of unmanned aerial vehicles following the 2009 sale of a dozen UAVs for some $50 million.
Haaretz reported Sunday that the UAV deal now on the table includes the sale of IAI-manufactured UAVs to Moscow as well. It gave no details on that aspect of the deal.
But it said that the joint production deal has run into opposition from the Israeli foreign ministry and the office of Prime Minister Binyamin Netanyahu.
"The sensitive part concerns the transfer of technology to Russia, which despite its attempts has failed to crack the secret of building silent UAVs," the liberal daily reported.
"While no one is talking about giving the Russians the plans for the most advanced pilotless aircraft in the arsenal of the Israeli (military), a deal would represent a technological advance for the Russians.
"Neither Jerusalem nor Washington wants the technology to end up in the hands of Israel's enemies," Haaretz reported.
IAI officials declined to comment on the report, presumably because of the sensitivity of the proposed deal and Israel's persistent efforts to persuade Moscow not to provide powerful S-300PMU air-defense missiles to Iran.
Tehran wants the five batteries of these missiles it purchased from Moscow under a $700 million contract in 2007 to protect its most important nuclear facilities which Israel has threatened to attack.
The Kremlin said last week that it would halt delivery of the S-300s following the imposition of new U.N. sanctions following Iran's refusal to abandon its contentious nuclear program.
Israel's political leaders may feel that agreeing to some form of joint UAV production deal with Russia, while limiting Moscow's access to the most advanced technology, would help persuade Russia that its interests are better served through such a deal.
"On the other hand," Haaretz noted, "the West has an interest in heightening its strategic ties with Russia in the event of a regional confrontation in the future."
Russia hasn't been able to produce an effective UAV, a weakness exposed during its brief 2008 conflict with Georgia, and it has made no secret of the fact that it wants to reverse-engineer the Israeli craft to fast-track production.
Moscow bought 12 Israeli UAVs under a $53 million deal signed with IAI in April 2009. These were the company's second-tier craft, the Bird-Eye 400 mini-UAV, the I-View MK 150 tactical drone and the Searcher Mark 2 medium-range UAV.
That was Israel's first sale of military platforms to Russia. It was also Russia's first purchase of a foreign weapons system.
Israeli defense sources said at the time that Moscow was seeking improved surveillance equipment with which to upgrade its indigenously produced UAVs.
Russia was reportedly seeking 50 Israeli UAVs, particularly long-endurance craft, including IAI's Heron, the largest Israeli surveillance drone with a 54-foot wingspan. It has the ability to stay aloft for 50 hours at a time at an altitude of 30,000 feet. It can also carry missiles and can be refueled in flight from tanker aircraft.
It was Georgia's use of long-endurance Hermes 450 tactical spy drones, built by Israel's Elbit Systems, to provide battlefield reconnaissance in the 2008 fighting that caught Moscow's interest.
Moscow, which had to rely on the less effective Tu-22 strategic bombers for battlefield intelligence, decided to acquire Israeli craft to study and reproduce in Russia.
"The UAV sale/technology theft was basically a bribe to ensure that the Russians did not equip Iran with better anti-aircraft missiles," a Western analyst commented.
