Greece should start buying from elsewhere!
WASHINGTON -(Dow Jones)- The Pentagon on Wednesday signed off on a $3.1 billion sale of 40 F-16 fighter planes to Greece.
The Defense Security Cooperation Agency notified Congress of the deal, which is not yet final. The agency said the sale would help U.S. interests by strengthening a friendly country without affecting Cyprus-related negotiations.
"The government of Greece needs these capabilities for mutual defense, regional security, modernization, U.S. and North Atlantic Treaty Organization (NATO) interoperability," the agency said. Congress has the power to block foreign military sales but rarely steps in.
The $3.1 billion deal includes 40 aircraft and a wide range of associated equipment like night vision goggles, radar and bombs. Major contractors include Lockheed Martin Corp. (LMT), which makes the F-16, along with Raytheon Co. (RTN), United Technologies Corp. (UTX), BAE Systems PLC (BA.LN), Boeing Co. (BA), Northrop Grumman Corp. (NOC) and L-3 Communications Holdings Inc. (LLL).
The defense agency said it expects the purchase will include offset agreements, which some countries require to keep trade flows balanced. Greece will work out specific agreements in negotiations with the contractors, the agency said.