New Libyan government cancels $4bln dollar arms deal

Libya’s rebel governing body does not plan to buy weapons from Russia because the country will not need them in the future. The estimated amount of all signed and planned military contracts of Gaddafi’s government with Russia was $4 billion.

The business deals signed under the ousted Libyan leader will be reviewed, according to Mustafa Abdul Jalil, chair of the National Transitional Council (NTC), which heads the rebel forces.

“We respect all deals with other nations, but they will all be reviewed, since many of the deals were signed thanks to corruption,” the former Justice Minister under Gaddafi said on Thursday in an interview with RIA Novosti news agency.

He said price terms of many of the contracts are too high, and such contracts will be subject to alteration. Among Gaddafi’s deals, which apparently will not be accepted by the new Libyan administration, are multibillion-dollar arms deals with Russia.

“Libya in the future will not need arms,” Abdul Jalil said.