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Dagens Industri  /  June 17, 2016

This February, Volvo Group received an order for military tactical trucks to deliver to Syria's neighbor Lebanon.

The money to pay for the trucks comes from Saudi Arabia.

The trucks will be produced by Volvo Group subsidiary Renault Trucks Defense.

However, a political crisis is unfolding that could see the trucks end up in Saudi Arabia.

On February 19, Saudi Arabia announced that it was stopping payment on $4 billion worth of military aid and other support for the army and security services of Lebanon because the country did not condemn attacks on Saudi diplomatic missions in Iran.

Background

(IHS Janes 360  /  4 Feb 2016) The Lebanese military ordered more than 200 French-made armoured vehicles as part of a pledged US$3 billion grant from Saudi Arabia, to upgrade its capabilities.

A contract was signed on 2 February between Volvo-Renault trucks and ODAS, a shell company created by the French government to serve as an intermediary in foreign defence deals.

Emmanuel Levacher, president of Volvo Group Governmental Sales and director-general of Renault Trucks Defence, said that Sherpa Light 4x4 armoured tactical vehicles and VAB Mk3 6x6 armoured personnel carriers (APCs) would be delivered to the Lebanese Armed Forces (LAF).

"We finally just signed, after months of procrastination, a contract with ODAS within the framework of the aid program to the Lebanese army, which involves the supply of 100 armoured Sherpa and 100 VAB Mk3," he said.

The signing came as LAF commander General Jean Kahwagi was in Washington for two days of talks with the US Department of Defense on enhancing US military assistance to Lebanon.

In December 2013, Saudi Arabia announced it would pay for US$3 billion of French military equipment to help the LAF better defend Lebanon's borders with Syria and maintain internal stability. The deal was signed between Riyadh and Paris in November 2014 after months of negotiations about the type of weapons and equipment the LAF would receive.

The equipment to be purchased under the US$3 billion package includes 24 Nexter Caesar 155 mm self-propelled howitzers, 7 Airbus H215M Cougar helicopters, 3 CMN Combattante FS 56 fast-attack craft, and 6 VBL light armoured vehicles fitted with Mistral short-range surface-to-air missiles. The first delivery occurred in April 2015 with the arrival in Lebanon of 48 Milan anti-tank missile systems.

Saudi Arabia pledged an additional US$1 billion for the Lebanese security forces in 2014 following a five-day battle between the LAF and militants affiliated to Islamic State and Jabhat al-Nusra, Syria's Al-Qaeda affiliate, in northeast Lebanon.

Related reading:

http://www.nytimes.com/2016/02/20/world/middleeast/saudis-cut-off-funding-for-military-aid-to-lebanon.html

http://www.nytimes.com/2016/03/03/world/middleeast/saudi-arabia-cuts-billions-in-aid-to-lebanon-opening-door-for-iran.html?_r=0

http://www.reuters.com/article/us-saudi-lebanon-idUSKCN0X20DG

http://www.renault-trucks-defense.eu/Defense/SHERPA-LIGHT

http://www.renault-trucks-defense.eu/Defense/VAB/VAB-Mk-3

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