Saudi Arabia, Rostec ink $3.5 bln arms deal

Saudi Arabia has signed an arms deal worth $3.5 billion worth with Russia’s Rostec Corporation, Russian state news agency TASS reported, citing chairman Sergei Chemezov.

The deal stipulates that the arms should be manufactured in Saudi Arabia, said Chemezov, adding that they would likely start with a Kalashnikov rifle- manufacturing plant.

“The Saudis have set a condition: the contract will enter into force, if we transfer a part of technologies to them and open production on the kingdom’s territory. We are thinking about what we can share,” said Chemezov.

Five years ago, Rostec inked contracts at $20 billion with Saudi Arabia. However, they didn’t come into effect.