Serbian weapons factory to sell arms to Armenia

Glas javnosti, Belgrade
24 May 07

Text of report by Serbian newspaper Glas javnosti on 24 May

[Report by B. Kuljanin (Sina): "Armament Going to Armenia"]

Kragujevac – In the next 10 days or so, the authorities will finally
give permission to Kragujevac-based Zastava Oruzje [Zastava Weapons]
factory to export to Armenia. All verbal approvals have been obtained
and it only remains for the administrative procedure of the competent
ministries exchanging documents to be completed, after which a
delivery worth 900,000 dollars will set off from Kragujevac for
Armenia. After the problems with exporting to Armenia, one should
never again publicly name countries with which the military factory
does business, they say at Zastava Oruzje. The Ministries of Defence,
Foreign Affairs, and Internal Affairs have coordinated positions and
the Zastava Oruzje management has renewed its application for
permission to make a second delivery to Armenia.

"We expect permission to be issued in the next 10 days or so, which
will contribute to a further improvement in the factory’s financial
flow," Managing Director Dragoljub Grujovic said.

The shipment should set off within the next few weeks, after the
remaining permits necessary for executing the export are
obtained. Grujovic said that the past business arrangement with
Armenia had been regular, too, and that there are no sanctions in
place.

Even the OSCE regulation of 14 years ago was repealed in February of
this year; also, Russia does not object to the export of armament to
Armenia, either. Armament manufactured and exported by the Kragujevac
factory is of the defensive kind, not offensive, and is used for
arming some countries’ forces of law and order.

"Russian diplomats have repeated their position that there will be no
problems about this contract or other contracts if Zastava should
request them," Grujovic stressed, adding that another contract was in
the process of being executed, but that the country to which the
armament was being exported would not be named any more.

"The arms market is under tight scrutiny and we are working strictly
by the book," Grujovic said.

[Box] Managing Director Replaced

Belgrade – The Board of Directors of Kragujevac-based Zastava Oruzje
dismissed the company’s managing director, Dragoljub Grujovic,
yesterday [23 May] afternoon due to poor business results and
accumulated debts. According to a statement, Zoran Aleksic, who has so
far headed the production and development department, has been named
acting managing director.

The Board of Directors will support the acting managing director and
the management of the factory and expects to have the authorities’
long-term support for the ongoing process of restructuring the Serbian
defence industry, the statement added.