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Russia agrees with Serbia's arms sale to Armenia - Serb president

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  • Russia agrees with Serbia's arms sale to Armenia - Serb president

    International Herald Tribune, France
    Dec 29 2006

    Russia agrees with Serbia's arms sale to Armenia, Serb president says
    The Associated PressPublished: December 29, 2006


    BELGRADE, Serbia: Serbia has secured Russia's consent to proceed with
    a planned arms deal with Armenia, defusing earlier objections from
    Moscow that caused upheaval at a Serbian weapons manufacturer, the
    president said Friday.

    President Boris Tadic said "the issue has been successfully resolved"
    in his meeting with Russia's ambassador to Belgrade, Aleksander
    Alexeyev, who has given "a positive response" to Serbia's appeal that
    the Zastava arms company is allowed to sell guns and rifles worth
    US$2.55 million (1.94 million) to Armenia.

    Earlier this month Zastava criticised the Serbian government for
    withholding permission for its previously arranged sale to Armenia,
    allegedly because Russia - Serbia's traditional ally - objected to
    the Serbian supplier venturing into a market usually supplied by
    Moscow.

    Zastava, based in the industrial city of Kragujevac, 90 kilometers
    (55 miles) southeast of Belgrade, is majority state-owned but its
    management enjoys some autonomy in negotiating arms deals. Actual
    exports, however, can be completed only with a government clearance.

    Zastava's unionized workforce of 2,600 has been on strike, demanding
    financial compensation from the government because of the blocked
    sale to Armenia. Defense officials have flatly rejected the demand.

    The dispute deepened this week when 80 Zastava workers seized
    control of Kragujevac city hall, saying they would keep up their
    protest until the authorities either approve the export or cover any
    loss caused by the ban.

    There was no immediate comment to Tadic's announcement from Zastava
    managers or protesting workers.

    The issue has become an embarrassment for Prime Minister Vojislav
    Kostunica ahead of Jan. 21 parliamentary elections. Tadic is his
    political rival, heading the opposition Democratic Party that
    currently leads in opinion polls.
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