Russia and Algeria: Partners or Competitors?

According to Vremya novostei, he was the first top-level Russian leader to visit Algeria since Soviet President Nikolai Podgorny (who was largely a figurehead) in 1969.13 The debt issue was resolved by Moscow's agreeing to completely write it off in exchange for Algeria's agreeing to purchase industrial goods from Russia "in an amount at least equal to the amount of the written-off debt" (which the Russian press put at $4.7 billion).14 In addition, Algeria agreed to purchase $7.5 billion in military equipment and services from Russia: $3.5 billion for Su30 MKIs, MiG-29SMTs and Yak-130 trainers; and $4 billion for tanks, antitank missiles, other armaments and repairs of Algerian naval vessels. The memorandum envisions the possibility of exchanging assets in the exploration and extraction sphere, the creation of joint ventures, participation in tenders to explore and extract oil and gas, information exchanges about projects, including projects related to liquefied natural gas (LNG), the optimization of gas supplies to the market, research activities, professional training and an increase in the qualification of employees at the two companies.18 An agreement was also signed by Sonatrach and Lukoil on cooperation in the oil sphere.19 While Europe currently produces 60 percent of the gas it consumes (with the UK, Holland and Norway being the biggest producers), it imports 40 percent of its gas needs from outside the region.