Could this have adverse implications for EADS winning either the FCA or USAF tanker deal? After all, Russia is steadfast in selling arms to Iran. Some (if not all) in Congress could see them as an "enabler" of the Islamic theocracy in Teheran and their vitriolic campaign and undisguised hatred of the U.S, Israel, and the west in general. Granted, there is a much, much larger picture here--particularly WRT the close ties that have developed between Boeing and Russia over the years. However, in today's highly charged, toxic, and caustic political environment, anything can be demagogued (and not just in the U.S.).
Also, should the E.U. be concerned that Russia now has almost the same stake as Spain in their "crown jewel"?
Quote: The move may ring alarm bells across the Atlantic. EADS is an important defence contractor, owning the European helicopter maker Eurocopter and having a 37.5 per cent stake in MBDA, a missile maker. For the giant European group, defence is an increasingly important segment of its business, and the American market is vital.
All big Western defence companies nowadays have international links, with global export markets as well as financial interests in other defence companies. Nevertheless, the prospect of a Russian state interest in Europe’s biggest aerospace group may make the Pentagon pause before placing orders. Russia is no longer a Cold War adversary, but neither is it seen as a wholly reliable or benign ally. Global competition for political influence is as fierce as ever, and America has deplored the authoritarian tendencies of the Putin Government.
A stake of only 5 per cent would not seem to be threatening. But if Moscow were to increase its holding, this might raise questions about the consortium. The fear might be that defence secrets would be compromised or that Russia might gain advantage in the global competition for arms sales. This is an area where Russia still presents a formidable challenge to the West: its arms sales to the developing world are huge and of crucial importance in volatile areas such as the Middle East.
I'm sure there'll be speculation in the U.S. Press as well.
[Edited 2006-08-30 17:27:46]
"When all is said and done, more will be said than done".
Saintsman From United Kingdom, joined Mar 2002, 2065 posts, RR: 2
Reply 3, posted (9 years 5 months 1 week 6 days 17 hours ago) and read 3926 times:
They are buying them to make a profit not to interfere with defence policy. They could just as easy buy Boeing shares on the open market. Most shares are owned by banks and investment companies and you offer the right price, they will sell.
FVTu134 From Russia, joined Aug 2005, 176 posts, RR: 1
Reply 6, posted (9 years 5 months 1 week 5 days 7 hours ago) and read 3800 times:
So that means that if Vneshtorgbank decides to increase it's aviation portfolio and decides to buy 5% of boeing on the open market, Boeing is also out of the market for supplying military contracts?
Obviously many people may have been surprised by this move but globalisation also happens on the financial markets and anybody can buy shares on the open market including Russians, Chinese, Cubans, Venezuelans, Syrians, Iranians, North-Koreans etc.... Now if all of those bought 5% of Boeing.... guess congress would do some head scratching.
I would think that there are enough clauses to protect the intellectual property of companies or the national interests of countries. But then it's also notthe first time that things are blown out of proportions by some of our friends in the US of A. Guess we'll just have to wait and see
who decided that a Horizon should be HORIZONtal???
KC135TopBoom From United States of America, joined Jan 2005, 12336 posts, RR: 51
Reply 7, posted (9 years 5 months 1 week 5 days 6 hours ago) and read 3797 times:
Quoting FVTu134 (Reply 6): So that means that if Vneshtorgbank decides to increase it's aviation portfolio and decides to buy 5% of boeing on the open market, Boeing is also out of the market for supplying military contracts?
I think US laws don't allows these types of investments in some defense companies, like Boeing, Lockheed-Martin, GD, and some others.
TropicBird From United States of America, joined May 2005, 502 posts, RR: 0
Reply 11, posted (9 years 5 months 1 week 4 days 22 hours ago) and read 3740 times:
The politicians who are die hard Boeing fans will use any issue to challenge EADS in the competition for the tanker. They will use this issue even if it is baseless by creating a perception of a problem. It is a common tactic in politics.