83: Chapter 83: Arms Orders Exceeding $12 Billion

The negotiation location was still set at the same house as before.

By the time Li Yi arrived from the Riviera Hotel, Colonel Suman, Major General Rahim, and Lieutenant Colonel Haidari had already arrived.

After Lieutenant Colonel Haidari gave a brief introduction of both parties, the negotiations quickly began.

"The oil payment for this transaction will be quite substantial. I want to ask if we can continue to use oil to pay for the procurement funds?" Colonel Suman first confirmed one thing upon starting.

"Yes, our side can accept energy and minerals such as oil, natural gas, and iron ore for payment in the future," Li Yi stated clearly.

"I heard from Lieutenant Colonel Haidari that the oil price needs to be calculated at a 35% discount based on the international oil price. Since the quantity of oil paid this time is quite large, can the discount be reduced?" Colonel Suman wanted to push for a higher set oil price.

"How much oil do you plan to pay for the procurement of the Tianlei Series Anti-Aircraft Missiles?" Li Yi asked.

"No less than 200 million barrels of oil."

Li Yi considered it; in order to have more energy and minerals used to pay for the procurement funds, the discount could indeed be appropriately reduced.

"For oil within 100 million barrels, it will be priced at a 35% discount on the international oil price; for 100 million to 500 million barrels, a 32% discount; for 500 million to 1 billion barrels, a 30% discount; for 1 billion to 5 billion barrels, a 28% discount; and for over 5 billion barrels, a 25% discount."

Li Yi provided a set of rules for the discount; based on different quantities of oil paid, they could enjoy higher oil prices.

For many countries, they simply could not produce more than 500 million barrels of oil. The reduced discounts for the later tiers were essentially just for show.

After hearing this, Colonel Suman stopped dwelling on the oil price and said, "The current international oil price is 71.4 USD per barrel. Calculated at a 32% discount, the price is 48.552 USD per barrel. Is this oil price acceptable?"

"No problem." This price was not much different from the previous oil transactions, so Li Yi had no objections.

Colonel Suman calculated the procurement funds he could mobilize. Commander-in-Chief Qasim had given him a limit of no less than 200 million barrels of oil, plus the 50 million barrels given to the Glass House, making a total of 250 million barrels.

Calculated at 48.552 USD per barrel, the total disposable procurement funds reached 12.138 billion USD. Of course, if the 50 million barrels for the Glass House were deducted, the procurement funds he could personally control also reached 9.7 billion USD.

Major General Rahim also calculated the procurement funds the Glass House could mobilize this time. 50 million barrels of oil, calculated at 48.552 USD per barrel, meant the mobilizable procurement funds reached 2.428 billion USD.

This was a relatively large sum of money, enough to purchase many Tianlei Series Anti-Aircraft Missiles.

"Has the price of the Tianlei Series Anti-Aircraft Missiles decreased?" Colonel Suman asked.

"No, they are still being sold at the discounted rates previously provided."

Li Yi did not plan to adjust the price of the Tianlei Series Anti-Aircraft Missiles for the time being; he would wait until they had mostly sold out before lowering the price.

Colonel Suman was a bit disappointed after hearing this, but he soon lost the mood to care; he needed to calculate how many of each model of the Tianlei Series Anti-Aircraft Missiles the Iran National Guard could purchase.

Colonel Suman communicated with Major General Rahim and decided to purchase them together first, and then distribute them between the Iran National Guard and the Glass House later.

After some calculations, Colonel Suman stated the procurement plan.

"Our side expects to purchase 1,000 sets of Tianlei Type I Anti-Aircraft Missiles, plus 4,350 supporting missiles; 800 sets of Tianlei Type II Anti-Aircraft Missiles, plus 2,400 supporting missiles; 400 sets of Tianlei Type III Anti-Aircraft Missiles, plus 1,000 supporting missiles; 90 sets of Tianlei Type IV Anti-Aircraft Missiles, plus 180 supporting missiles; 90 sets of Tianlei Type V Anti-Aircraft Missiles, plus 90 supporting missiles; and 90 sets of Tianlei Type VI Anti-Aircraft Missiles, plus 90 supporting missiles."

After stating the procurement plan, Colonel Suman inquired, "Can our procurement of the Tianlei Series Anti-Aircraft Missiles this time still be combined with those purchased by the Glass House to calculate the discounted price?"

"Yes," Li Yi didn't mind.

"Alright then, our side will proceed with the procurement of the Tianlei Series Anti-Aircraft Missiles according to this plan," Colonel Suman made his decision.

Li Yi performed the calculations based on the procurement plan provided by Colonel Suman.

The purchase price for the Tianlei Type I Anti-Aircraft Missiles was 448 million USD, 1.04 billion USD for the Tianlei Type II, 1.2 billion USD for the Tianlei Type III, 1.98 billion USD for the Tianlei Type IV, 3.15 billion USD for the Tianlei Type V, and 4.32 billion USD for the Tianlei Type VI.

The total procurement price was 12.138 billion USD. Calculated at 48.552 USD per barrel, the oil Iran needed to pay was exactly 250 million barrels.

The procurement plan Colonel Suman calculated used up all 250 million barrels of oil funds perfectly, leaving no surplus.

After finishing the calculation, Li Yi said, "The total price for this procurement of the Tianlei Series Anti-Aircraft Missiles is 12.138 billion USD. Colonel Suman, there are no errors in the calculation, right?"

"Correct." Colonel Suman had originally calculated the purchase quantities based on the procurement funds he could mobilize.

"The deposit for this procurement will be 20% of the total goods value, which is 50 million barrels of oil. After the 50 million barrels of oil are paid, our side will deliver the first batch of the Tianlei Series Anti-Aircraft Missiles. We plan to complete the delivery of your procurement in three batches."

Li Yi decided to deliver the Tianlei Series Anti-Aircraft Missiles purchased by Iran in three batches; after all, the quantity was quite large this time, and if delivered in only two batches, each batch would be too much.

Colonel Suman had no objections to the delivery being completed in three batches. What he cared about was the delivery timing, so he asked, "Then within what timeframe will these three batches be completed?"

"The first batch can be delivered within one month, the second batch within the second month, and the third batch within the third month. Of course, this requires your side to pay the oil on time as agreed for the delivery to follow this schedule."

Li Yi gave a delivery deadline of three months, which was quite appropriate.

"No problem." Colonel Suman knew that so many Tianlei Series Anti-Aircraft Missiles could not be delivered all at once, and three months was not long and perfectly acceptable.