Russia may lose arms sales from Arab unrest

Russia risks losing up to ê10 billion (7.4 billion euros) in arms sales from the wave of unrest currently sweeping north Africa and the Middle East, a weapons industry official said on Tuesday.

The arms industry export official told the Interfax news agency that Russia was carefully monitoring the situation because it had major outstanding contracts with some of the fallen regimes.

The source said Russia "was working on and already implementing arms contracts worth some ê10 billion" in the affected countries.

"Nothing can be ruled out in the current situation, and in the worst-case scenario, these plans may be wrecked," the Russian source said.

Russia sells arms across the region. Its most important Middle Eastern clients include Yemen and Libya, whose regimes are currently seeing the biggest challenge to their rule, and Egypt where Hosni Mubarak has fallen from power.

Two years ago, Libya's embattled leader Moamer Kadhafi offered to host a Russian naval base in his north African country.

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