Contract on export of Zastava’s arms to Lybia cancelled – 37m USD worth of deal ruined

Company "Mevale corporation" has given up 37m USD worth of contract it signed with Kragujevac-based factory “Zastava Arms” on export of arms to Lybia.

The President of the Trade union of “Zastava Arms”, Dragan Ilić, said that the people from "Mevale corporation" had told the authorized people in Kragujevac’s factory that they had received the information from the Ministry of Economy and Regional Development of Serbia that the conditions for realization of the two contracts from year 2008 had not been created yet.

- They pointed out that that was the reason why the contracts with “Zastava Arms” had been cancelled and that nothing could change that decision any more – said Ilić.

Ilić added that the exporter had explained that the trade union had not had any influence on that decision. He also added that the trade union would not give up the protest that had been announced for March 25th in Belgrade.