In the first half of this year Ukraine's arms exports have not been curtailed and the returns have turned out as expected, Ukrspetseksport (Ukrainian Special Exports) General Director Valery Maliev told UNIAN. Good for the domestic arms dealers, although Mr. Maliev did not specify how much. Meaning that this export stability should be compared to last year's $399 million, according to the Stockholm Institute for Peace Studies.
Still, the second half of 1998 is not likely to be as stable or predictable, for there is a quiet revolution on the Ukrainian weapons market, caused by Cabinet Resolution No. 838. According to this document, the military-industrial complex now has in theory the opportunity to access the world market directly and independently, without the Ukrspetseksport mediation. However, to gain this privilege, every enterprise, firm, or company must meet every item in a list of fifteen requirements. As a result, a series of special commercial structures being formed under the auspices of the Ministry of Industrial Policy will qualify — particularly firms under the tentative titles of Aviapromeksport (Aviation Industrial Exports), Tankoeksport (Tank Exports), Technology Export, and Shells and Artillery. Firms that do not qualify will have to turn to Ukrspetseksport as the traditional go-between. Ascertaining who is who in the Ukrainian arms business will inevitably lead to reduced profits. Evidence of this is the sad experience of the Russian company Rosvooruzheniye's (Russian Arms) reorganization, and Ukrspetseksport is following in its footsteps.






