ARMS EXPORT DELAYED DESPITE RUSSIAN OK

B92, Serbia
Feb 11 2007

KRAGUJEVAC, BELGRADE — The first shipment of Zastava’s Armenia-bound
arms export will be delivered next week.

Although Zastava-Weapons received a government green light to
realize one of the two previously arranged sales to Armenia, the
first shipment, worth 1.7 million dollars, is already a month late.

The fate of the second shipment worth 900,000, however, remains
uncertain, since none of the relevant ministries have to date
issued necessary permits that would allow the Kragujevac-based arms
manufacturer to honor its contractual obligations toward the Armenian
defense ministry.

Although Russia gave Serbia permission to export its arms to the
Euro-Asian countries, with the exception of Georgia, reporters have
unofficially learned that the latest delay once again has to do with
what the authorities in Belgrade view as "higher national and state
interests", inevitably linked to the Kosovo status issue.