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Serbia seals multimillion arms deal with Iraq

Released : Friday, March 28, 2008 6:02 AM

BELGRADE, Serbia-Serbia has sealed a deal to sell US$235 million (€149 
million) of aircraft, weapons and military equipment to Iraq, the Defense 
Ministry said Friday.

It said the material will include 20 light training aircraft, pistols, 
assault rifles, mortars, ammunition, explosives and bulletproof vests.

The piston-engined Lasta 95 is a new development by Utva aircraft factory 
just outside Belgrade, and will enter production thanks to the deal with 
Iraq.

Serbia's Defense Minister Dragan Sutanovac said this is "a deal of the 
century" for Serbian weapons' factories.

"This is the biggest deal ever for our military industry," Sutanovac told 
Blic daily.

He said the agreement was signed with Iraq's Defense Ministry, with the 
approval of the U.S.-led military alliance there.

Sutanovac said that Iraq has made the first downpayment, sealing a deal made 
during a visit to Belgrade last year by Iraqi Defense Minister Abdul-Qadir 
al-Obeidi.

Al-Obeidi's visit was the first by a top Iraqi official to Belgrade since 
the fall of the dictatorial regimes of Saddam Hussein and Slobodan 
Milosevic, who had maintained close ties.

Yugoslav construction companies built much of Iraq's military 
infrastructure, such as air bases and command bunkers, during the 1970s and 
80s.

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