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The Government of the Republic of Serbia

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Arms export to Iraq, good deal for Serbian military industry

Belgrade, 28 March 2008

Serbian Minister of Defence Dragan Sutanovac said in an interview with the daily Blic that Serbia will export armament to Iraq after many years as well as 20 airplanes from Pancevo Utva.

Dragan Sutanovac

Sutanovac said that the annual production of pistols by Zastava Oruzje will be reserved for Iraq, namely 17,000 pistols, including 3,000 specially commissioned pieces for the highest-ranking Iraqi officials.

The deal will be implemented through the public company SDPR, Sutanovac said and added that the money has been transferred and will be distributed to all factories engaged in the deal.

According to Sutanovac, the deal with Iraq is worth $235 million.

He added that the companies engaged in this business are Krusik Valjevo, Zastava Kragujevac, Milan Blagojevic Lucani, Prva Iskra Baric, Prva Petoletka Trstenik and Utva Pancevo.

This is the best deal that the Serbian military industry has ever made and it is a great injection for the defence industry, he said noting that Serbian factories have great perspectives as they are export-oriented and are directly drawing foreign currency into the country.

Sutanovac commended the Serbian Ambassador to Iraq and added that the agreement was signed directly with the Iraqi Ministry of Defence.

He also said he is making attempts for the Serbian defence industry to break through in Algeria, where he was on March 25 and 26.

Apart from defence cooperation, the talks also focused on economy, the Minister said and explained that Serbian companies will participate in a tender for building a military ammunitions plant.