Buyback Offer < Thailand >

[Jay]

МИД РФ Ministry of Foreign Affairs​

AUTHENTIC COMMUNIQUE OF THE OFFICE OF FOREIGN AFFAIRS Security Clearance: Secure and Encrypted​

[Recipient]: Ministry of Foreign Affairs of Thailand < Bossza007 > [Sender]: Ministry of Foreign Affairs, Russian Federation < SmirnovaaFE@MOFA.de.gov > [Subject]: RE: Trade Relations

I hope this email finds you well. As part of our ongoing efforts to strengthen the capabilities of the Russian Armed Forces, and in light of changing national prerogatives of users of Russian equipment, the Russian Government is eager to offer flexible buy-back policies for users of Russian equipment. We are eager to seek the interest of the Thai government to participate in our buy-back proposal for the BTR-90, BMP3, and T-90 Specifically, we are offering a buy-back program whereby we would repurchase any weapon systems acquired from Russia at their original purchasing price. In return, we propose to provide 100% of the repurchase value in the form of store credit for Rosoboronexport, our state intermediary agency for the export and import of defense-related products, technologies, and services. This store credit could then be utilized for the acquisition of a wide range of military equipment and technologies offered by Rosoboronexport in the future. This may be, once the total value of the buy-back is received as credit, be used to purchase more advanced systems. Our objective with this proposal is two-fold. Firstly, we aim to facilitate the modernization and strengthening of the Russian Armed Forces by reclaiming equipment that aligns with our strategic defense priorities. Secondly, we seek to provide previous partner nations with an opportunity to reallocate their defense resources effectively and efficiently. We believe that this buy-back program could serve as a valuable resource for both our nations to achieve and reduce defense product waste. Should your government be interested in exploring this proposal further, we would be more than willing to discuss how we can tailor the terms of the buy-back arrangement to better accommodate your specific preferences. Kind regards, Fenya Smirnova Director for South & Southeast Asia Russian Federation

 

[Bossza007]

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To: <Ministry of Foreign Affairs of the Russian Federation> Jay From: <Sarabun@mfa.mail.go.th> Subject: Russia’s Interest in Arms Acquisition Security Type: NSST 1.0 Architecture

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To the Ministry of Foreign Affairs of Russia

The Ministry of Foreign Affairs of the Republic of Thailand acknowledges receipt of your esteemed Ministry's communication regarding the previously supplied equipment. We appreciate your interest in facilitating its acquisition. However, due to the expiration of the relevant contract between Thailand and the Russian arms export corporation in 2001, the aforementioned equipment has become the sole property of the Republic of Thailand. Ownership precludes the possibility of repurchase by the Russian Federation. The Republic of Thailand commends the Russian Federation's pursuit of modernizing its Armed Forces. In that spirit, we encourage the utilization of these forces for the promotion of international peace and humanitarian endeavors.

Sincerely,

Surakiart Sathirathai
Minister of Foreign Affairs
Republic of Thailand

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Digital Diplomatic Communication​

 

[Jay]

МИД РФ Ministry of Foreign Affairs​

AUTHENTIC COMMUNIQUE OF THE OFFICE OF FOREIGN AFFAIRS Security Clearance: Secure and Encrypted​

[Recipient]: Ministry of Foreign Affairs of Thailand < Bossza007 > [Sender]: Ministry of Foreign Affairs, Russian Federation < SmirnovaaFE@MOFA.de.gov > [Subject]: RE: Trade Relations

I hope this email finds you well. Thank you for your feedback on the policy. I have attached an addendum to this document from our office of legal counsel clarifying a serious legal error in your analysis. I expect a response regarding the Addendum as soon as possible. Should your government be interested in returning to this proposal in the future, please do let me know. Official Addendum Intended for Dissemination and Sharing with the Government of the Thailand The Ministry of Foreign Affairs Office of Legal Council acknowledges the receipt of the received email pertaing to the legal classification of Russian equipment in service with the Thai Government at this time. To affirm the Ministry of Foreign Affairs has received seven total orders, including only the items in controversy, where Thailand made purchases from Russia's Rosoboronexport. The following transactions were made by Thai official Supachai Panichpak June 1999 Julu 1999 November 1999 May 2000 The following transactions were made by the Thai Ministry of Commerce June 2000 July 2000 January 2001 The Ministry of Foreign Affairs affirms the legal assessment made by the Ministry of Justice which reads as follows. The opinion of the International Court of Justice affirms that the terms and conditions of Rosoboronexport, which are themselves a reflection of Russia's export laws, were indeed valid and binding upon Thailand. The Court's interpretation of the contract further signified that the terms of service are indeed a legally binding contract between the parties. This is despite the fact that the contract was conducted in November of 1999. Therefore Thailand is incorrect that the contract between Russia and Thailand has expired. Time does not define the expiration of the contract. Such a condition is not found in the terms and conditions and does not accurately reflect the arms sale market. The Russian Federation, not Rosnoborneexport, has the power in accordance with the Russian Constitution, to handle matters of foreign affairs to which the sale of arms and maintenance of end-user monitors lay. Rosnoborneexport, as the competent private body created by Russian law, is entrusted with carrying out Russia’s defense export policies. According to this interest, Rosnoborneexport has been the main channel for foreign exports to which Thailand is accustomed. Nonetheless, the ultimate authority to which exports are responsible is the Federal Government of Russia and as such it is Russia’s inherent right to intervene and take legal action on behalf of its corporate entities, incorporated inside Russia, where they lack the means to do so. On each of the seven purchase requests the Thai Government consented to the terms of service. The transfer of funds by Thailand, as stipulated in the agreed-upon payment terms, is deemed to be an offer to enter into this agreement, thereby signifying Thailand's acceptance of the terms and conditions outlined clearly by Rosoboronexport. The act of transferring money constitutes the initiation of the offer. The terms of Roosobonexport explicitly hold that "Nations and partners who purchase from Rosoboronexport cannot sell, trade/exchange, or donate/give away purchased equipment to third parties without expressed permission by Rosoboronexport." Therefore, while a purchaser obtains possessory rights over the purchased equipment they do not receive the full rights to do as they please with it. Instead, Rosoboronexport, as is common industry practice, retains rights over the purchased equipment. Russia's retainer over the purchased equipment inherently means that Thailand does not exclusively own Russian-made equipment. Instead, Rosoboronexport is the sole entity legally allowed to purchase back Russian equipment to which Thailand is neither allowed to re-sell, exchange, or donate to third parties. In the event that the Russian Government permits an exchange or donation, it is done so through Rosoboronexport. Therefore while Thailand is the legal physical possessor of the purchased equipment it is not the sole possessor. Since Russia maintains a retainer on all equipment sold, Thailand shares possession with Russia legally. Therefore Thailand is not correct is it the contract has expired between both parties or if it is the sole legal possessor. While Thailand may continue to use Russian equipment, it is not given any legal rights to do as it pleases, as is commonly understood with true sole legal owners of the property, instead, it is subject to restrictions which indicate it is not the sole owner. Instead, Thailand shares legal rights to its equipment with Russia. Thailand's legal position is therefore incorrect and must be duly changed to be in compliance with this addendum which outlines why Thailand is incorrect. For any further questions please have Thai inquiries channeled by our Embassy in Hanoi. Please comport yourself accordingly. Fenya Smirnova Director for South & Southeast Asia Russian Federation

 

[Bossza007]

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To: <Ministry of Foreign Affairs of the Russian Federation> Jay From: <Sarabun@mfa.mail.go.th> Subject: Russia’s Interest in Arms Acquisition Security Type: NSST 1.0 Architecture

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To the Ministry of Foreign Affairs of Russia

The Ministry of Foreign Affairs of the Republic of Thailand acknowledges receipt of your esteemed Ministry's communication concerning the previously supplied equipment. We appreciate your interest in facilitating its acquisition.

The Ministry of Foreign Affairs of Thailand wishes to address a misunderstanding on the part of the Russian government. Thailand has never claimed ownership of this equipment, all of which are the sole intellectual property of the Russian Federation. We understand Russia's eagerness to protect its sovereignty; however, it is imperative that such actions respect the sovereignty of other nations with goodwill. Following the collapse of the Russian administration in 2002, both Thailand and Russia terminated their agreement regarding the sale of Russian equipment. We are not rejecting Russia's offer to acquire its intellectual property, but we are simply declining the use of the term "buyback." Thailand is eager to engage in business with Russia under the condition that your administration employs the correct and legal terminology regarding arms acquisition.

Sincerely,

Surakiart Sathirathai
Minister of Foreign Affairs
Republic of Thailand

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Digital Diplomatic Communication​

 

[Jay]

МИД РФ Ministry of Foreign Affairs​

AUTHENTIC COMMUNIQUE OF THE OFFICE OF FOREIGN AFFAIRS Security Clearance: Secure and Encrypted​

[Recipient]: Ministry of Foreign Affairs of Thailand < Bossza007 > [Sender]: Ministry of Foreign Affairs, Russian Federation < SmirnovaaFE@MOFA.de.gov > [Subject]: RE: Trade Relations

I hope this email finds you well. The previously attached addendum is the official position of the Russian Government, one that reflects the accurate position. The Russian Government continues to urge Thailand to cease its unfounded legal positions and conform with the current position of not only Russia but also the International Court of Justice advisory opinion which has affirmed that the pre-2002 was a valid contract. Therefore, whether the term is a buyback, re-acquire, or some other term the fundamental basis of the legal relationship is the same. Russia retains the exclusive right to be the sole entity to control where the equipment Thailand purchased may be re-sold. This distinction is not simply crucial it is the basic element of international commercial transactions. If Thailand is unable to come into compliance with this legal position there will be significant repercussions on our determinations of Thailand's eligibility for future transactions due to it being unable to respect Russia's intellectual property and its contracts. Please comport yourself accordingly. Fenya Smirnova Director for South & Southeast Asia Russian Federation