Eastern European Arms Sales to Rogue States

Sam Vaknin, Ph.D. - 12/25/2005 

In a desperate bid to fend off sanctions, the Bosnian government banned In 
October 2002 all trade in arms and munitions. A local, Serb-owned company was 
documented by the State Department selling spare parts and maintenance for 
military aircraft to Iraq via Yugoslav shell companies.

Heads rolled. In the Republika Srpska, the Serb component of the ramshackle 
Bosnian state, both the Defense Minister Slobodan Bilic and army Chief of Staff 
Novica Simic resigned. Another casualty was the general director of the Orao 
Aircraft Institute of Bijeljina - Milan Prica. On the Yugoslav side, Jugoimport 
chief Gen Jovan Cekovic and federal Deputy Defense Minister Ivan Djokic stood 
down.

Bosnia's is only the latest in a series of embarrassing disclosures in 
practically every country of the former eastern bloc, including all the EU 
accession candidates. With the crumbling of the Warsaw pact and the economies 
of the region, millions of former military and secret service operators 
resorted to peddling weapons and martial expertise to rogue states, terrorist 
outfits, and organized crime. The confluence - and, lately, convergence - of 
these interests is threatening Europe's very stability.

In October 2002, the Polish "Rzeczpospolita" accused the Military Information 
services (WSI) of illicit arms sales between 1992-6 through both private and 
state-run entities. The weapons were plundered from the Polish army and sold at 
half price to Croatia and Somalia, both under UN arms embargo.

Deals were struck with the emerging international operations of the Russian 
mafia. Terrorist middlemen and Latvian state officials were involved. Breaching 
Poland's democratic veneer, the Polish Ministry of Defense threatened to sue 
the paper for disclosing state secrets.

Police in Lodz is still investigating the alarming disappearance of 4 Arrow 
anti-aircraft missiles from a train transporting arms from a factory to the 
port of Gdansk, to be exported. The private security escort claim innocence.

The Czech Military Intelligence Services (VZS) have long been embroiled in 
serial scandals. The Czech defense attaché to India, Miroslav Kvasnak, was 
recently fired for disobeying explicit orders from the minister of defense. 
According to Jane's, Kvasnak headed URNA - the elite anti-terrorist unit of the 
Czech National Police. He was sacked in 1995 for selling Semtex, the notorious 
Czech plastic explosive, as well as weapons and munitions to organized crime 
gangs.

In August 2002, the Czechs arrested arms traffickers, members of an 
international ring, for selling Russian weapons - including, incredibly, tanks, 
fighter planes, naval vessels, long range rockets, and missile platforms - to 
Iraq. The operation has lasted 3 years and was conducted from Prague.

According to the "Wall Street Journal", the Czech intelligence services halted 
the sale of $300 million worth of the Tamara radar systems to Iraq in 1997. 
Czech firms, such as Agroplast, a leading waste processing company, have often 
been openly accused of weapons smuggling. "The Guardian" tracked in February a 
delivery of missiles and guidance systems from the Czech Republic through Syria 
to Iraq.

German go-betweens operate in the Baltic countries. In May 2002 a sale of more 
than two pounds of the radioactive element cesium-137 was thwarted in Vilnius, 
the capital of Lithuania. The substance was sold to terrorist groups bent on 
producing a "dirty bomb", believe US officials quoted by "The Guardian". The 
Director of the CIA, John Deutsch, testified in Congress in 1996 about previous 
cases in Lithuania involving two tons of radioactive wolfram and 220 pounds of 
uranium-238.

Still, the epicenters of the illicit trade in weapons are in the Balkan, in 
Russia, and in the republics of the former Soviet Union. Here, domestic firms 
intermesh with Western intermediaries, criminals, terrorists, and state 
officials to engender a pernicious, ubiquitous and malignant web of smuggling 
and corruption.

According to the Center for Public Integrity and the Western media, over the 
last decade, renegade Russian army officers have sold weapons to every criminal 
and terrorist organization in the world - from the IRA to al-Qaida and to every 
failed state, from Liberia to Libya.

They are protected by well-connected, bribe-paying, arms dealers and high-level 
functionaries in every branch of government. They launder the proceeds through 
Russian oil multinationals, Cypriot, Balkan, and Lebanese banks, and Asian, 
Swiss, Austrian, and British trading conglomerates - all obscurely owned and 
managed.

The most serious breach of the united international front against Iraq may be 
the sale of the $100 million anti-stealth Ukrainian Kolchuga radar to the 
pariah state two years ago. Taped evidence suggests that president Leonid 
Kuchma himself instructed the General Director of the Ukrainian arms sales 
company, UkrSpetzExport, Valery Malev to conclude the deal. Malev died in a 
mysterious car accident on March 6, three days after his taped conversation 
with Kuchma surfaced.

The Ukrainians insist that they were preempted by Russian dealers who sold a 
similar radar system to Iraq - but this is highly unlikely as the Russian 
system was still in development at the time. the American and British are 
currently conducting a high-profile investigation in Kyiv.

In Russia, illegal arms are traded mainly by the Western Group of Forces in 
cahoots with private companies, both domestic and foreign. The Air Defense Army 
specializes in selling light arms. The army is the main source of weapons - 
plastic explosives, grenade launchers, munitions - of both Chechen rebels and 
Chechen criminals. Contrary to received opinion, volunteer-soldiers, not 
conscripts, control the arms trade. The state itself is involved in arms 
proliferation. Sales to China and Iran were long classified. From June, all 
sales of materiel enjoy "state secret" status.

There is little the US can do. The Bush administration has imposed in May 
sanctions on Armenian and Moldovan companies, among others, for aiding and 
abetting Iran's efforts to obtain weapons of mass destruction. Armenian 
president, Robert Kocharian, indignantly denied knowledge of such transactions 
and vowed to get to the bottom of the American allegations.

The Foreign Policy Research Institute, quoted by Radio Free Europe/Radio 
Liberty, described a "Department of Energy (DOE) initiative, underway since 
1993, to improve 'material protection, control and accountability' at former 
Soviet nuclear enterprises. The program enjoys substantial bipartisan support 
in the United States and is considered the first line of defense against 
unwanted proliferation episodes."

"As of February 2000, more than 8 years after the collapse of the USSR, new 
security systems had been installed at 113 buildings, most of them in Russia; 
however, these sites contained only 7 percent of the estimated 650 tons of 
weapons-usable material considered at risk for theft or diversion. DOE plans 
call for safeguarding 60 percent of the material by 2006 and the rest in 10 to 
15 years or longer."

Russian traders learned to circumvent official channels and work through 
Belarus. Major General Stsyapan Sukharenka, the first deputy chief of the 
Belarusian KGB, denied, in March, any criminal arms trading in his country. 
This vehement protest is gainsaid by the preponderance of Belarusian arms 
traders replete with fake end-user certificates in Croatia during the Yugoslav 
wars of secession (1992-5).

Deputy Assistant Secretary of State Steven Pifer said that UN inspectors 
unearthed Belarusian artillery in Iraq in 1996. Iraqis are also being trained 
in Belarus to operate various advanced weapons systems. The secret services and 
armies of Ukraine, Russia, and even Romania use Belarus to mask the true origin 
of weapons sold in contravention of UN sanctions.

Western arms manufacturers lobby their governments to enhance their sales. 
Legitimate Russian and Ukrainian sales are often thwarted by Western political 
arm-twisting. When Macedonia, in the throes of a civil war it was about to 
lose, purchased helicopter gunships from Ukraine, the American Embassy leaned 
on the government to annul the contracts and threatened to withhold aid and 
credits if it does not succumb.

The duopoly, enjoyed by the USA and Russia, forces competitors to go 
underground and to seek rogue or felonious customers. Yugoslav scientists, 
employed by Jugoimport and other firms run by former army officers, are 
developing cruise missiles for Iraq, alleges the American administration. The 
accusation, though, is dubious as Iraq has no access to satellites to guide 
such missiles.

Another Yugoslav firm, Brunner, constructed a Libyan rocket propellant 
manufacturing facility. In an interview to the "Washington Post", Yugoslavia's 
president Vojislav Kostunica brushed off the American complaints about, as he 
put it disdainfully, "overhauling older-generation aircraft engines".

Such exploits are not unique to Yugoslavia or Bosnia. The Croat security 
services are notorious for their collusion in drug and arms trafficking, mainly 
via Hungary. Macedonian construction companies collaborate with manufacturers 
of heavy machinery and purveyors of missile technology in an effort to recoup 
hundreds of millions of dollars in Iraqi debts. Albanian crime gangs collude 
with weapon smugglers based in Montenegro and Kosovo. The Balkan - from Greece 
to Hungary - is teeming with these penumbral figures.

Arms smuggling is a by-product of criminalized societies, destitution, and 
dysfunctional institutions. The prolonged period of failed transition in 
countries such as Yugoslavia, Macedonia, Bosnia, Moldova, Belarus, and Ukraine 
has entrenched organized crime. It now permeates every legitimate economic 
sphere and every organ of the state. Whether this situation is reversible is 
the subject of heated debate. But it is the West which pays the price in 
increased crime rates and, probably in Iraq, in added fatalities once it 
launches war against that murderous regime.
 
Sam Vaknin, Ph.D. is the author of Malignant Self Love - Narcissism Revisited 
and After the Rain - How the West Lost the East. He served as a columnist for 
Central Europe Review, PopMatters, Bellaonline, and eBookWeb, a United Press 
International (UPI) Senior Business Correspondent, and the editor of mental 
health and Central East Europe categories in The Open Directory and Suite101.

Until recently, he served as the Economic Advisor to the Government of 
Macedonia. Sam Vaknin's Web site is at http://samvak.tripod.com 
 http://www.globalpolitician.com/articleshow.asp?ID=1506&cid=3


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