Although Ukrainian leaders said on more than one occasion that the Ukrainian defense establishment was quite capable of joining the top five (Ukraine was in the 1996 top ten, but there was the $620 million tank deal with Pakistan), but such optimism and the results of the Arms 1997 government show were worlds apart.
In January, Andriy Kukin, then director of the Ukrspetseksport state company, promised The Day’s readers that the company would double arms exports and special services in 1997, adding that exports could amount to over $600 million. Mr. Kukin disclosed the company’s net revenues to the Russian Nezavisimaya gazeta two days before he was fired: “I can only say that last year’s net returns to the company accounts totaled over $200 million.”
Valery Maliev, the new Director General, when asked by the newspaper, Ukraina moloda (Young Ukraine), about this year’s performance, made an almost sensational statement: “Our plans said $186.7 million. We made $148 million. So much for our accomplishment.” Ukrinmash, the Ukrspetseksport subsidiary showing the greatest turnover in 1996 ($45 million), made a mere $6.7 million in 1997. According to Mr. Maliev, this was the result of “monopolistic operations and discouraging specific firms.”
His aversion to monopoly is understandable, because Mr. Maliev’s appointment was regarded by many as evidence that fundamental changes in arms sales were forthcoming, meaning primarily an increase in the number of “special exporters.” As for suddenly shrinking sale proceeds, it is just possible that the newly appointed manager decided (and not without reason) that Ukrspetseksport should not give promises which it might find very hard to fulfill. In addition, his own position depends on how well he can sell. Be it as it may, discrepancies in information originating from the defense department cause raised eyebrows rather than proud smiles. After all, fifty million dollars can hardly be described as peanuts.






