💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Serbia buys 12 Rafale jets from France's Dassault Aviation for 2.7 billion euros

Published 08/29/2024, 05:50 AM
Updated 08/29/2024, 03:27 PM
© Reuters. France's President Emmanuel Macron gestures, as he walks to greet Britain's Prime Minister Keir Starmer (not pictured), as Starmer arrives at the Elysee presidential palace for a meeting in Paris, France August 29, 2024. Justin Tallis/Pool via REUTERS/Fil

By Aleksandar Vasovic

BELGRADE (Reuters) -Serbia on Thursday signed a landmark agreement with France's Dassault Aviation for the purchase of 12 new Rafale fighter jets for 2.7 billion euros ($2.99 billion).

The agreement, signed by Serbia's Defence Minister Bratislav Gasic and Dassault Aviation CEO Eric Trappier, also includes a complete auxiliary logistics package, spare engines and parts, Serbia's President Aleksandar Vucic told a news conference.

"A dozen of brand new aircraft will be owned by Serbia ... this will contribute to a significant increase in the operational capabilities of our army," Vucic said.

"We are happy to become a part of the Rafale club."

The acquisition, made during French President Emmanuel Macron's visit to Belgrade, signals a major shift in Serbia's security and political stance, moving away from Russia, its traditional ally and weapons supplier.

Macron said Europe needs a strong and democratic Serbia, while Belgrade needs a "strong and sovereign EU."

"Choice of Rafale jets by Serbia is in this context a clear choice of long-term alliance between our two countries," Macron said.

The purchase of Rafales is the single biggest weapons deal since Serbia became independent from its state union with Montenegro in 2006.

Vucic said Serbia would pay two tranches of 421 million euros each in 2024 and 2025 for the planes.

He did not specify when Serbia would receive its first Rafales, but said they would be delivered with MICA air-to-air medium-range missiles manufactured by France's MBDA, instead of more sophisticated Meteor missiles which have longer range.

Belgrade curtailed military cooperation with Moscow after Russia invaded Ukraine and it has condemned the invasion, but unlike the EU, which it wants to join, and other Western countries, it has not imposed sanctions on Moscow. 

Serbia's military and air force are loosely based on Soviet technology, but it has also purchased helicopters and transport planes from Airbus, radars from Thales and France's Mistral surface-to-air missiles.

Vucic also sought to assure that Serbia will not share Rafales technology with Moscow.

"We are not Russian spies to transfer technology, we paid for this with Serbian citizens' money," Vucic said.

Serbia also operates Chinese missiles and drones. Its defence budget amounts to around 2% of gross domestic product (GDP).

This is Macron's second meeting with Vucic this year and follows the visit of Chinese President Xi Jinping to Belgrade in May, highlighting Serbia’s strategic position on the edge of the EU, with ties to the east and west.

The EU remains Serbia's single biggest investor and hundreds of thousands of Serbs work in Western-owned companies. 

But Belgrade, which seeks to diversify its gas supplies, is also dependent on Russian gas and has the Kremlin's support in its opposition to the 2008 independence of Kosovo.

Before it joins the EU, Serbia would have to improve democracy, the rule of law and judiciary, root out corruption, red tape and organised crime and mend ties with Kosovo.

© Reuters. French President Emmanuel Macron shakes hands with Serbian President Aleksandar Vucic at the Palace of Serbia building in Belgrade, Serbia, August 29, 2024. REUTERS/Djordje Kojadinovic

It must also align its foreign policies with those of Brussels, including the introduction of sanctions against Russia.

 ($1 = 0.8988 euro)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.