Russian missile maker lost $790 mln over Libya War

Russian air-launched missile maker Russian Tactical Missiles (TRV) suffered a loss of $791.22 million worth of contracts with Libya in 2011 due to the civil war there, the corporation’s General Director Boris Obsonov said on Tuesday. Russia lost around $4 billion in sales to Libya due to the war and the resultant UN sanctions on Tripoli, according to data from Russian arms sales company Rosoboronexport and the Federal Military-Technical Agency. “In total, export contracts that were not fulfilled totaled 600 million euros,” Obsonov said. “Also, it is impossible not to note the fact that a contract was signed with Libya for our Bal-E coastal defense missile system. Unfortunately it was not fulfilled.” He stressed that the amount was lost profit and not a financial hole. “These lost opportunities – that which we call lost profit – are pretty serious for the corporation and not just in the financial sense,” he said. “In addition, there were several contracts still in the final stages of discussion,” he added. TRV hopes to export $527.5 million worth of missiles in 2012, Obsonov said “We delivered about $390 million worth of missiles in 2011, up 14 percent on the previous year. We expect to deliver at least as much this year,” he says. Civil war broke out in Libya in February 2011 after protests against the rule of Muammar Gaddafi developed into full-scale insurrection. A UN resolution was passed in March 2011 setting up a no-fly zone, and NATO aircraft began attacking Gaddafi’s forces immediately after. Gaddafi was killed in October and NATO operations ended at the end of that month. TRV, based in Korolev near Moscow, is Russia’s main maker of tactical air-launched missiles, and combines the former Vympel, Zvezda-Strela and Raduga design and manufacturing organizations.