Israel Aerospace Industries Ltd. (IAI) (TASE: ARSP.B1) has signed a $400 million contract to sell unmanned aerial vehicles (UAV) to Russia's open joint stock company OPK Oboronprom. Deliveries will be made over three years. The Russian authorities still have to approve the deal.

Oboronprom will pay IAI a $280 million down payment, and will pay the balance as the UAVs are delivered.

IAI will provide Oboronprom a bank guarantee against part of the payment. The guarantee will be reduced as deliveries of the UAVs progress.

Published by Globes [online], Israel business news - www.globes-online.com - on October 13, 2010

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