A BANNER YEAR FOR ARMS EXPORTS.

According to an unnamed source in the Defense Ministry, the Russian arms industry has orders worth $7 billion already this year. He predicted this total could climb to $9 billion by the end of the year if "several interesting projects" come to fruition. The source said that the breakthrough year for arms exports was 1995, when foreign sales reached $3 billion. They grew to $3.4 billion last year.

One of these "interesting projects" could be the purchase of 25 "Albatros" A-40 seaplanes by the British Royal Air Force. Built by Beriyev, the A-40 is the largest jet amphibian ever built and set 14 world records during testing. Only two have ever been built, and they have never gone into service with the Russian Navy. There was a report several years ago that the RAF was interested in the Albatros. (Radio Rossii, September 14, 1993) Yesterday Georgi Panatov, Beriyev general director, said that an RAF team had recently visited his Taganrog plant and had agreed to buy 10 A-40s for some $25 million each with a follow-on commitment for 15 more. (Interfax, January 28)

Moscow Using Border Issues to Slow Baltic Progress Toward EU and NATO.