Introduction

The countries of the former Yugoslavia were regular buyer of weapons from Ukraine and Bulgaria during 90s. Even before the destruction of the Yugoslavia, the main channels of arms transportation from Ukraine and Bulgaria were formed.

Aleksandar Vasiljevic, the head of the Military Intelligence Service at the beginning of 90s, said to us that from the beginning of 1991, military agents infiltrated nine channels of arms trafficking, linked to the organised criminality in the region, that was coming from Bulgaria to former Yugoslavia. He said that this operation was very well documented by the military agents and that military intelligence was informed in advance of transportation of weapons from Bulgaria to former Yugoslavia. Vasiljevic said that the main supplier in all those channels was Bulgarian company Kintex.

Vasiljevic said that arms trafficking from Bulgaria started even before the war in former Yugoslavia. Vasiljevic is claiming that intensive armament of Croatia started in October 1990 from the ports of Burgas and Varna. The weapons were transported with ships Lipa and Karolina.

The first such transport registered by the Military Intelligence happened in December 1990.

“I recall that a high level British foreign officer cautioned the Bulgaria’s diplomatic representative in London about the information they had in connection with a ship Lipa which was about to set sail. We knew about shipment of eight containers of weapons from Varna on 31 December 1990. The company involved in business from Croatian side was Zagrebtrans. The weapons were declared as cigarettes and whisky and transferred to the Croatian Island of Krk. According to custom declaration, the ship was supposed to sail to the post of Bizerta", said Vasiljevic.

Vasiljevic was unable to comment of the Serbian involvement in the arms trafficking.

The first arms embargo on Yugoslavia is voted with Resolution N213 of 1991 of the UN Security Council. The embargo is on the delivery of arms, ammunitions and military equipment to Yugoslavia. Bulgaria enforces this resolution with Decree N16 of July 24, 1991. In December 1995 Yugoslavia signs the Dayton Accords in Paris and the embargo is lifted. Yugoslavia starts to cooperate with the international community – the country wants to join the Wasenaar Agreement. On March 31, 1998 the UN Security Council votes for a new arms embargo to be imposed on Yugoslavia in connection with the ethnic cleansing of Kosovo – the votes are 14:0 (China abstains). The embargo is lifted in 2000.

In Bulgaria a Law on Arms Trade Control is passed in November 1995; it comes into force in February 1996- one month before the first Yugo embargo. In practice the enforcement of the law is in 1997 under the new right-wing government of Ivan Kostov. The period 1991-1995 is a period of chaos, illegal trading and non-working state. The existing state monopoly over the arms trade is gradually broken up by the first private firms that trade with arms.

In 1991 an arms dealer from Targoviste puts in a claim with the Supreme Court against a decision of the court not to register as one of the activities of his firm the trade with sporting guns and ammunitions. In 1992 the court decrees that this can be registered in the Trade Register. As long as there is no law establishing state monopoly over the production of arms and ammunitions, every trader has the constitutional right to carry out such activities. The Supreme Court decrees that the decision for the registration in the Trade Register does not replace the permit the trader must have for the above mentioned activities, it precedes it.

A number of companies receive licenses: the state-owned companies Kintex, Armimex, Elmetengineering, KAS Engineering, Teraton, as well as the private companies Delta-G, owned by Nikolay Gigov and Shirio, owned by Emilian Gebrev. Petar Mandzukov’s firm Norwood gets a license after 1995. Air Sofia, owned by Lilian Todorov and astronaut Georgi Ivanov, and Air Zori, whose owner is Victor Boot’s brother – Sergei Anatolievic Boot are licensed as carriers of special products.

The attitude towards to Yugo embargo in Bulgaria has always been dual. At the political level the country observes the international requirements. At the level of the state administration, which includes the intelligence services, as well, the problem is simply ignored silently. This is especially valid for the first Yugo embargo – 1991-1995.

The dual position is very clearly observed during 1993-1994. Some people of Lyuben Berov’s Cabinet patronize illegal trade, while the rest of the cabinet fights it. Vice-Premier Neicho Neev, himself ‘facilitates’ the export of 18 tank-cars with petrol for Yugoslavia. Victor Mihailov, Minister of the Interior acts in accordance with the latter group. In a report on the violation of the Yugo embargo in 1994 he reveals some cases of illegal trade with petrol. It is also known that during this period a firm, owned by Elena Kostova (wife of the future Premier Ivan Kostov) exports petrol to Yugoslavia (allegedly with Mira Markovic). Multigroup plays a leading role in this business.

In November 1993, the Bulgarian prime minister Prof. Lyuben Berov meets the Prime Minister of Yugoslavia in Sofia. The same month during the peak of the Yugo embargo, about 100 Bulgarian businessmen visit Belgrade and have talks with representatives of Yugoslav firms. The visit is organized by the Bulgarian Chamber of Commerce and Industry and by the trade Attaché in Belgrade – a former military intelligence officer. At the cocktail party at the Serb Chamber of Commerce and Industry in the center of the Yugoslav capital, the Vice-President of Multigroup Mario Peev approaches the resident of the National Intelligence Service and says: ‘I know who you are. It’s a matter of big money and heads will fall off’. What is all this about?

A firm from Nis has barter with Miltigroup: they exports from Serbia for Multigroup copper sheets for a tank-car of diesel fuel. The Bulgarian tank is stopped at the border, although the Serb partners have completed their part of the deal. The resident of the National Intelligence Service in Belgrade informs the HQ about the contacts of Multigroup with Yugopetrol. Multigroup finds out about this and reacts in their typical way.

‘At the National Security Service we did not feel confident enough to control arms trade’, says Georgi Shmugarski, former Head of Economic Department in National security service - NSS (Bulgarian Counter-intelligence). This department checks the issue of licenses for arms trade. ‘When I started work in 1995, I inherited chaos from 1992-1994. This chaos was intentionally created, so that all these criminals could make money. At the NSS we were not confident enough to control the arms trade. This illegal trade was so large-scale that we could not control it. We did not have any agents at the Customs Offices. We did not have any officers working undercover. How can you fight smuggling if you have no information? New border checking points were opened. However, they were not controlled: Strezimirovtsi, Stanke Lisichevo, Vrashka Chuka, Petrich and Kulata (the border between Bulgaria and Macedonia and between Bulgaria and Serbia) – a lot of smuggled goods passed over there. The UN international observers were corrupted, too. (The sums for smuggled goods, including diesel oil, are: USD 100,000 per tank composition for a UN observer, USD 10,000 per tank composition to a Bulgarian customs officer, and USD 5,000 per tank composition to a Serb customs officer). We did exercise some control, but our activities were not efficient. This was redistribution. We were helpless. There was leak of information from our services. The whole administration was totally corrupted.

The duel attitude is connected with the catastrophic state of the Bulgarian Military Industrial Complex. MIC is in a collapse – this is the conclusion of the inquiry committee, founded on November 25, 1992. The conclusions of the committee are that ‘the restrictions of the three years of embargo, connected with the Gulf War and the crisis in Yugoslavia, have had a disastrous effect over the economy of the MIC’. The volume of special products fell from 2,399,851 levs in 1988 to 1,170,990 levs in 1992, i.e. a fall of more than 1.2 billion levs.

The official export of special products in 1991 amounts to approximately USD 170 million. In 1992 it amounts to USD 329,376,154 (in practice export is half that sum – about USD140 million). In 1994 it amounts to about USD 150 million, and in 1995 – between USD 120 and USD 150 million.

‘Our philosophy was that the Bulgarian military industry must work and export. If I had had to, I myself would have carried out illegal trade and poured the money back into the country. Yes, there were firms founded with the main aim to fight illegal trade. I do not remember any names,’ says a former high ranking officer from Counter-intelligence from the period of the first Yugo embargo.

‘I must have told Zhan Videnov (Premier – 1994-1997) hundreds of times “Let’s export arms to Yugoslavia”. He would not listen. No one could change his mind. We, as part of the state administration strictly observed the requirement of the embargo, our activities were legal. Now, looking back I realize that not everything was what it seemed. Some people made a lot of money. When Videnov’s government fell from power I could not find another job for a long time. The reason is that during that time I had not established any close contacts with any firms; I strictly observed my duties as a civil servant. Many other people acted differently. For instance Paraskev Paraskevov (Deputy-Minister at the Ministry of the Interior, in charge of Counter-intelligence) managed to start work immediately at Delta-G,’ a Deputy-Minister of the Interior says.

Kolyo Paramov, chief auditor at the Bulgarian National Bank from 1992 to 1997 says: ‘Thanks to the foreign currency receipts from Serbia via Macedonia our banking system functioned normally. Most of the money physically came to Bulgaria. The Serbs avoided the banks in Macedonia because they had no guarantees that the money will be actually transferred. First East International Bank and Elitbank made a lot of money from such activities, as well as from the export of Serb currency to Swiss banks. They carried out the money in cloth military bags. DEM 16 million was loaded on planes as valuable packages – that was a legal banking operation. On the average USD 10-12 million were transferred daily. For one year (1993-1994) about USD 1 billion was transferred. Without these transfers of money and arms the Bulgarian and Serb mafia could not have become strong and rich. Bank accounts were opened and closed all the time. Firms were registered, they functioned for one or two days, then they were closed down and new firms were registered. There was no one who could start legal actions against the arms deals at that time.’

The lack of information was a very grave problem at that time for Bulgaria. He is still. The conclusion of the Inquiry Committee of 1992 is that ‘there are no collected and processed data at the Inter-institutional Committee and no such data are available at the other public institutions’. Such information is lacking today, as well; the decisions of the Inter-institutional Committee are still classified information. There is no summarized information about the actual export of arms across the borders.

The lack of information is a very grave problem for Serbia, too. There is no much information about the names of the companies involved in arms trafficking on the route Ukraine-Bulgaria-Serbia. State officials in Serbia are denying there was ever such business, independent analysts are affraid to speak about subject as many of those involved are still on high possition and still involved in this dirty business.

The bizarre war of the secret services

Arms trade during the Yugo embargo was not among the priorities of the Bulgarian Intelligence. At different times some of the intelligence services worked closely with Bulgarian arms traders, who were known to have close contacts in Serbia. Information was passed to the HQ but no actions were taken. Information is more important than any cause – this is the underlying philosophy of the pragmatism of any special service, a former chief of counterintelligence explains. The general opinion today is that the American secret services also cooperated closely on the Balkans with firms and individuals, about whom they had information that they regularly broke the embargo.

Talking to us, Masis der Partought, the editor in chef of the weekly "Financial Mirror" from Cyprus said that American administration is intensively searching in Cyprus for the people involved in arms trafficking in former Yugoslavia.

"During my investigation of the financial transaction of Milosevic regime in Cyprus, I found out that lot of documents about companies involved in arms smuggling were taken from dossiers in courts and Central bank. In all dossiers I saw the note "taken by the American Embassy in Nicosia".

‘This was not a priority for us. Much of the information about shipments of arms for Yugoslavia via Cyprus came to us from Turkey. We passed this information to our superiors, but nothing happened. No measures were taken’, a source from the Bulgarian Military Intelligence states.

‘There was information about the delivery of ground-to-air missiles ‘Strela’ to Serbia. There was no way we could know how big the shipments were. They were not registered,’ another Bulgarian source says.

‘Strela’ are the Bulgarian modification of the Russian ground-to-air missiles ‘Igla’. The Bulgarian missiles are produced at the armaments plant in Sopot. A ‘Igla’ missile costs USD 50,000 and hits the target in 80% of the cases. An ‘Strela’ missile costs USD 10,000 and hits the target in 35-40% of the cases. But if you manage to hit the target the first time ‘Strela’ are cheaper. This explains the great demand for them. A fact that has not been known to the Bulgarian public so far – the Israeli plane brought down in Mombassa – Kenya in 2002 by Al Kaida was shot at with Bulgarian ‘Strela’. Their identification number showed that they were produced at the Armaments plant in Sopot in 1991-1993. They were exported to Yemen by Armimex in 1993. The deal amounted to about USD 8 million and it was between the Ministry of Defense of Yemen and the Bulgarian Ministry of Defense.

‘We had such a task but it was not a priority. The possibilities of our residents in Serbia were limited. (Until 2000 our Military Intelligence had much bigger staff – 14 people, compared to the Political Intelligence - 4 people – author’s comments). I wrote reports on this, but nothing changed. The HQ know best what measures should be taken. And they did not do anything’, says the former resident of the National Intelligence Service in Belgrade during this period. ‘You must curb the activities of your arms dealers, they are selling to Bosnia. They crossed the Bulgarian border with Czech number plates on their lorries,’ his colleague – a Dutchman in Belgrade tells him. This is the case of the 6 lorries of fire arms, mortars and ammunitions exported to Bosnia in 1994. Officially the consignment was for Albania.

Block

Ivan Stambolic and Branko Krga mentained contacts with American services through Bulgarian Military Intelligence

Bulgaria and Yugoslavia are not at war at that time, but on the other hand, they are not allies. The Bulgarian government observes the conditions of the first and second Yugo embargo, imposed by the UN Security Council. The Bulgarian Parliament provides an air corridor to NATO forces during the Kosovo crisis.

However, the relations between the special services of both countries are quite friendly.

It is only now that the curtain over the activities of the Bulgarian Military Intelligence which helped NATO in the war in Yugoslavia begins to rise slowly.

In December 1998, two months and a half before the beginning of the bombing over Yugoslavia, the former Serb President Ivan Stambolic arrives in Sofia. The official purpose of his visit is meeting Prime Minister Ivan Kostov, who presumably cancelled the meeting at the last moment. 40 km. west of Sofia, Ivan Stambolic, accompanied by arms trader Petar Mandzukov, has talks with Gen. Angel Katsarov, Head of the Bulgarian Military Intelligence and Gen. Ivan Penkov, Deputy-head of operations, responsible for the Balkan countries.

Stambolic brings to Sofia valuable information about the position of the ground-to-air rocket launchers near the capital of Yugoslavia. He gives this information, specifying that the situation might change.

Everybody knows that the war is about to begin.

Ivan Stambolic is against the nationalism in the Serb politics and he is an opponent of Milosevic. He knows very well Milosevic and his family. He supported Milosevic when Milosevic came to power. At the 8th Congress of the Central Committee of the Serb Communist Union in 1987 Stambolic gives the chairmanship of the Central Committee of SCU to Milosevic. This is not Stambolic’s first visit to Bulgaria. In November 1997 his book ‘The Road to Maze’ – interviews with political analyst Slobodan Inic- is published by Lyubomir Levchev ‘on the initiative of, and sponsored by Mr. Petar Mandzukov’ ( as one can read on the inside cover). The author comes to Sofia for the release of the book. In Belgrade he regularly meets the incumbent US Ambassador Richard Miles, who in 1999 is posted as US Ambassador to Bulgaria. Most probably for security reasons he chooses Sofia as the place where he can provide this valuable intelligence data. Undoubtedly, the information reaches the Americans.

‘Yes, we met with Stambolic several times’, confirms a high-ranking officer from the Bulgarian Military Intelligence, who insisted on anonymity. ‘He was erudite, with thorough knowledge of the situation in Yugoslavia, of the character of Milosevic and Mira Markovic. He gave us a very precise psychological portrait of Milosevic, which we used in our analyses.’

‘At that time everybody was trying to get some safeguards, since everybody knew perfectly well that USA will win. Ivan Stambolic was one of these people’, says another officer from the Bulgarian Military Intelligence who also wants to be kept anonymous.

At that time Colonel-General Branko Krga is Head of the Military Intelligence of Yugoslavia. Today Gen. Krga is Chief of Staff of the army of Serbia and Montenegro. ‘He also gave intelligence date to the Americans through us’, sources from the Bulgarian Military Intelligence say. ‘Right before the war our representative met him in a third country – not in Serbia and not in Yugoslavia.’

On March 4, 1999 three days before the NATO’s attack, Gen. Angel Katsarov, Head of the Bulgarian Military Intelligence, visits Belgrade and meets Gen. Branko Krga. Gen Katsarov refuses to comment on this meeting.

The paradox, however, is that according to intelligence sources Slobodan Milosevic knew what was going on. However, he did not take any measures to put an end to these activities. Could he, too, have been looking for some safeguards for the time after the war, safeguards against what? We do not know the answers to these questions yet.

And yet, what is the probability that Milosevic knew about these meeting?

A Bulgaria arms trader says: ‘NATO aircraft flew at exceptionally high altitude; this could mean that they knew a lot about the air-defense of Belgrade. When there was fog, they did not fly at all.’ On the other hand, in practice, USA did not destroy the rocket launchers near Belgrade, they hit mainly civil buildings.

There is an explanation to this. Back in Tito’s time Yugoslavia had a specific strategy for its territorial defense. The Yugoslavs built a large number of underground shelters and they kept most the equipment hidden in them. On the surface they left cardboard copies. The Americans dropped hundreds of tons of bombs on this faked equipment – cardboard tanks, armored vehicles, and aircraft. The Serbs suffered few losses and managed to preserve their military equipment due to this strategy. One fact – only 13 tanks were destroyed during NATO bombing over Yugoslavia.

After the war USA revises its intelligence concept, in which, over the last decade, technical intelligence has had priority over human intelligence. Only Huming, or human intelligence, can estimate things correctly, if they are real, or faked. This is a lesson learnt from the war in Kosovo. One of the lessons.

On 28 July 1999 US Vice-President Al Gore in a letter to Premier Ivan Kostov expresses gratitude on his behalf and on President Clinton’s behalf for the efforts of Bulgaria in the solution of the conflict in Kosovo and for the ‘zealous and effective way’ the Bulgarian government has been working with NATO and the other countries in the region to achieve this aim.

The same year – 1999 - a delegation of US congressmen, headed by Congressman John Maika, author of the resolution ‘USA for Bulgaria’, visits Sofia. ‘To express our gratitude to the Bulgarian people and the Bulgarian institutions for the support they gave us during the Kosovo crisis.’ This is what John Maika says about one of the aims of this visit to Bulgaria. At the meeting with the US congressmen Ivan Kostov points out ‘the good cooperation between the US and Bulgarian special services’.

At the beginning of 2000 Ivan Stambolic disappears while jogging in a park in Belgrade. Stambolic is considered the main opponent of Milosevic during the presidential elections in October 2000.

On August 14, 2000 CIA Chief George Tenet visits Sofia and meets the heads of the two intelligence departments in a house in Bistritsa – a place situated at the foot of Vitosha Mountain. The meeting with Gen. Dimo Gyaurov, Head of the National Intelligence Service, lasts for about ten minutes. The meeting with Gen Angel Katsarov and with the Minister of Defense Boyko Noev lasts for one hour.

‘We knew the country (Yugoslavia) very well, the processes there, the personal characteristics of its leaders’, Gen. Katsarov says. ‘This helped us to assess their activities correctly, and to forecast the developments. The assessment of our department was the most realistic one.’

The Bulgarian Military Intelligence is the initiator of the Atlantic Club in Belgrade. Two people – Kolyo Kolev, Secretary of the Military Attaché Ivan Penkov (later on he is deputy-chief of the operations of Gen. Katsarov), and Milivoje Relin are considered to be its founders. There are rumors that both men are involved in arms deals, but we could not find any evidence to support this. At present Kolyo Kolev is working at the multinational police Headquarters in Pristina; Milivoje Relin is the Chairperson of the Atlantic Club.

Stambolic’s remains were found in a hole in a hill near Novi Sad – a town in northern Serbia – after the assassination of the Serb Premier Zoran Jinjic on March 12, 2003. Police sources say that the grave was dug in advance. The former Serb President was shot twice in the head.

‘Ivan Stambolic was of no interest to me. He was a by-gone politician’, Milosevic writes in a letter, sent in August 2003 from his prison cell in the Hague. On September 23, 2003 the Serb Prosecutor Yovan Priic indicts Milosevic for ordering the assassination of the former Serb President Ivan Stambolic, and for the attempted murder of the leader of the Serb Movement for Change Vuk Draskovic.

The system

was complicated and it contained of the main state supplier of the weapons "SDPR Yugoimport" and dozen of private companies with close connection with police and army. Most of those "phantom" companies were formed just for one transaction and therefore it is not possible to trace their activities.

The main problem in Bulgaria is connected with the offshore firms that acted as intermediaries.

‘A separate inquiry should be carried out of the activities of the producers and the trade firms on one hand, and their connections with the foreign companies with Bulgarian stake. However, the state cannot control the latter’ - another conclusion of the parliamentary Inquiry Committee still in 1993.

‘That was one of the key points – offshore companies acting as intermediaries and the intermediaries in general’ says Blagoy Genov, Secretary of the Inter-institutional Committee from 1997 to 2001 (Ivan Kostov’s government). ‘I can say that I was one of the team working on the amendments to the Law; I was the person who made the proposal to issue licenses to the intermediaries, as well’.

These amendments are adopted in 2001, after the second Yugo embargo. Blagoy Genov cannot explain the reasons for this delay.

‘What was the game? Yes, there was a list of embargo countries. The export was made for an offshore company that was an intermediary, most often property of the seller; the contract stipulated that the company cannot re-sell the arms it has received. In practice no control could be exercised over such companies,’ says Gen. Atanas Atanasov, Head of the Bulgarian NSS (1997 – 2001).

All transactions, both involving SDPR Yugoimport and private companies were blessed by the government in Belgrade who was looking for a fresh weapons.

There are cases that open person is owner of dozen firms, all involved in arms trafficking. One of them is Bruno Vlahovic, who is owner of Target, Swinga, Samarkand and several other companies. We trace activities of those companies in Bulgaria (see below). The other Serbian companies involved in business were Centaur, Temex, Inter-dill, GVS, Infiniti, Brunner, Interjug. The companies were changing the name overnight - one night the name is Brunner, the other night is JLP. Police and Army were buying weapons separately. There were companies exclusively working for police and other exclusively working for the Army. In many business, mafia had a big part playing a key role.

The same situation was with transportation. Weapons for the Army was comming to the military airport in Batajnica, 20 kilometers from Belgrade, while the contingents for police were comming at civil airport Surcin-Belgrade.

The Bulgarian state cannot control re-export through Bulgaria, either. ‘It’s true that re-export deals did not have to be declared. There was no licensing. However, we were a state-owned firm, our activities were controlled, and we declared all our re-export contracts. We did not have any reasons for concerns. We registered everything’, says Anton Saldziiski, Manager of Kintex from 1991 to 1997.

‘The re-export from Bulgaria was mainly for Yugoslavia,’ an anonymous Bulgarian arms trader says. ‘Their military industry was much more developed than ours, so they did not need Bulgarian products. They needed sophisticated systems. Russia was against the embargo and did business directly with Belgrade. Ukraine was willing to sell goods to anybody, if someone else provided the end-user certificate and delivered the goods to Yugoslavia. Some Bulgarian companies managed to join in this scheme; Rumanian, Polish and Hungarian companies also participated very actively. The contacts were made provided the information was reliable and good old strings were pulled.’

In this situation it is not very difficult to find loopholes in the Bulgarian legislation, without breaking the laws.

As for the Ukraine, we spoke with Taras Kuzio, expert for arms trafficking and Resident Fellow at the Center for Russian and East European Studies at the University of Toronto.

"As in Serbia in the 1990s, organised crime and the government are not separate entities. The accumulation of capitol by oligarchs in the 1990s was undertaken through illegal (i.e. with the assistance of organised crime) and semi-legal (i.e. bending the rules in privatisation) means. Ukraine officially supported the UN arms embargo while at the same time defying it. This is nothing unusual. It simply reflects the duplicity inherent in Ukraine's inherited neo-Soviet political culture. In May 2000 President Bill Clinton visited Kiev and confirmed the US-Ukrainian "strategic partnership" said Taras Kuzio.

The transition period in Bulgaria is particularly difficult for the armaments plants. About 50,000 workers are dismissed. The rate of unemployment in the towns, where the armaments plants provided jobs for most of the population, is very high. The managers of there plants are willing to do almost anything to pay the salaries to the people still employed by them. There are a lot of stories, connected with this, which, of course cannot be proven.

For example: bombs, and submachine guns are imported in separate parts, not assembled - cartridge cases, gunpowder, shells (at that time most of the armaments plants have licenses to trade with arms). The plant receives a permission to import 10,000 shells in parts from Ukraine. They assemble the parts. They get a new permission for export – so they export the shells (now they are made in Bulgaria) to a third party. In this case the country of origin of the goods is Bulgaria, not Ukraine. Or the plant buys 10,000 shells and then sells them to another country. The price differential is big enough to ensure the salaries to the workers for a month.

Another example: the plant declares that the goods are delivered in parts, while actually they are final products. At the plant they just repaint them and export them as Bulgarian production. There are a few cases when AK-47s were painted at one of the Bulgarian plants.

Sometimes the goods do not arrive in Bulgaria at all. Only the documents read that they are exported for Bulgaria.

People, well-acquainted with the matter, claim that the most profitable scheme is a scheme, involving a crime organization in Ukraine. In Russia and Ukraine huge amount of arms was concealed and there were claims that all the weapons had been destroyed; but actually they ware stolen, stored and sold to people closely related to their military intelligence service and connected to the organized crime. It’s a well-known fact that some strange group of Bulgarians and Ukrainians met on an island in the Pacific.

Arms disappear in other countries, as well.

At the beginning of 1990s, in accordance with the Warsaw Pact, there are 7 military bases of the Soviet army in Bulgaria. The storehouses are full of Russian weapons. When the train start leaving for Russia Bulgarian and Russian officers deviate one carriage with air-to-air missiles in the direction of Serbia, witnesses claim. Of course, there are no documents to prove this.

Later on, 80,000 machine guns AK-74 disappear from the storehouses. The rumor is that their destination was Bosnia.

It was a very common practice at the beginning of the 1990s in Bulgaria for companies to export Bulgarian products with falsified or original certificates of end-users, and to change the destination in transit. In 1990s the price for an end-user certificate was USD 10,000. About ten years later the price is USD 50,000. The restriction not to sell arms to third parties without the authorization of the Inter-institutional Committee, issuing the license, is introduced in 1996. But this restriction is not actively applied.

At the beginning of 1990s two deals are used for political aims. The first deal, the so called ‘Macedonian deal’ in October causes the fall of Philip Dimitrov’s government - the first right-wing government of the UDF. In fact, the so-called Macedonian deal is not realized. There are talks between the Konstantin Mishev - advisor of the Prime Minister, with representatives of the Serb Secret Services (UDBA) about future import of Bulgarian arms in Serbia via Macedonia. The meeting takes place in Skopje; the National Intelligence Service finds out about it and informs the press. Now, more than a decade later, and having in mind the close contacts Konstantin Mishev has in the USA (he worked at Free Europe in Washington before he came back to Bulgaria) it could be assumed that Mishev provoked rather than negotiated with the Macedonian authorities. Nevertheless the scandal erupts. In an interview, taken by one of the authors of this text the Head of the NIS Brigo Asparuhov says: ‘the government of Macedonia is composed of agents of the Serb secret services (UDBA) and they work in the interests of Yugoslavia’. This causes a big political scandal, Brigo Asparuhov had to apologize publicly.

During the mandate of the following government (Premier Lyuben Berov) the so-called ‘Albanian arms deal’ is disclosed. Valentin Alexandrov, former Minister of the Defense claims, that it was ‘political provocation’ on behalf of Russia.

Pulling ‘good old strings’

Bruno Vlahovic – Target and his Albanian and Ukranian deals through Bulgaria

For many years, Bruno Vlahovic was member of the Secret Service of former Yugoslavia and man with excellent contacts with police.

We can reveal the involvement of this man in two transactions with Bulgaria - one from 1999 during NATO action in Serbia and the previous one from 1993 known as "Albanian deal".

a - The Albanian deal

Wednesday – November 10, 1993. Six lorries of the forwarding agency Taurus are driving at a high speed from Sofia to Bulgarian-Serbian border checking point Gyueshevo. They are all carefully covered with canvas. The motorcade is led by a police car; a Mercedes is driving right behind the lorries. The vehicles reach Gyueshevo at about 13.00 h. They are quickly checked and cleared, and cross the border. High-ranking officers and officials from the Macedonian Ministry of the Interior meet the motorcade. Without any delay the vehicles head for Skopje, accompanied by a white motor car and a patrol car with Macedonian registration plates. All the junctions the motorcade crosses are blocked by the police to clear the way. Few people know then that the lorries are carrying 100 mortars and 10,000 shells for them. Several hours later the lorries are at Petrovac Airport near Skopje. The mortars and the ammunitions are unloaded quickly and stored in military storehouses. One or two days later they are flown by military aircraft to Bosnia. Fierce fighting has been raging there for two years.

Two years afterwards it is disclosed that the so-called ‘Albanian’ deal is a Bulgarian-Serb deal, and that the parties involved in it actually violate the embargo.

The story began few month earlier in 1993 when Bulgarian partners were contacted by Mr Branislav Djurica, representative in Sofia of the Serbian company Genex Invest. Djurica invited his Bulgarian partners to take part in arms trafficking from Ukraine and Russia to Serbia via Bulgaria. Bulgarian helped arrange the import from Russia of spare parts for airplanes Mi8, MiG29 and An26 aircraft for 300.000 dollars. The parts were then exported illegally throughout the custom at Kalotina.

After this deal was successful, Serbian intelligence service send to Sofia stronger man - Bruno Vlahovic. He was interested to buy 100 mortars. In September 1993 Mario Stoichkov - President of Bulgarian company Videomax, and according to unofficial information, officer from the National Intelligence Service – meets his colleague from the Serb firm Target - Bruno Vlahovic. At the meeting they negotiate the delivery of 100 Dragunov guns with optical sight, mortars caliber 82 mm, a large amount of shells and 300 guns. The Yugoslav firm mainly deals with purchase and sale of arms and military equipment.

For the "Albanian deal" Samarkand company from Cyprus, owned also by Bruno Vlahovic, took out a US$500,000 loan from Vitomatic trade in 1993, which it has not paid back to this day. The loan was written off at Vojvodjanska Banka`s expense.

Stoichkov does not have a license to trade with arms, so he contacts Stoyan Tsakov, whom he knows quite well. Colonel Stoyan Tsakov – 57 years of age, graduated from the Higher Air Forces School ‘G. Benkovski’ in 1965. He is Deputy of Department ‘Provision and Trade’ with the Ministry of Defense. While working at the department he is involved in the organization and management, signing and execution of contracts for export and sales of rear military equipment.

They agree to use the license of the Ministry of Defense for import and export of arms and military equipment. Tsakov informs his chief Vladimir Popinski about the arrangement and after he receives his approval, the preparations for the deal begin. The 52-year old Vladimir Popinski – a chemical engineer – was appointed head of Department ‘Provision and Trade’ in 1993. As head of this department he is authorized to use the license of the Ministry of Defense for trade with military and special products and to sign contracts for domestic and foreign deals ‘on behalf of and in the interest of the ministry’. At a meeting with Bruno Vlahovic the following prices are negotiated: USD 5,500 per mortar, USD 60 per mine and USD 1,850 per Dragunov gun. The initial plans are to import the guns from Russia, but they fail. They contact Romtechnika in Rumania which produces Dragunov guns. Two letters are prepared of 5 Oct. and 6 Oct. 1993. The letters inform the Rumanian firm that the Ministry of Defense wants to buy 300 Dragunov guns from Romtechnika. On October 10, 1993 Stoichkov pays USD 50,000 and receives the 100 guns. Although the officer has no license to import arms in Bulgaria, after presenting the letters signed by Colonel Popinski, a customs officers, whose identity is not known, clears the goods. The following day Stoichkov manages to take the guns through the customs office at the border checking point at Kalotina with the assistance of another customs officer whose identity is not known either.

To make the trafficking of arms to Serbia look like a legal transaction, the leaders of this “project” decided to legalize the deal with the help of Sali Cuci – Colonel in the Albanian army. The Albanian is the manager of Meiko firm with the Albanian Ministry of Defense. Sali Cuci makes an official inquiry for the purchase of 100 mortars, 10,000 mines and Makarov guns against a commission. (So, he makes an end-user certificate.) Popinski and Tsakov inform the Bulgarian Minister of Defense Valentin Alexandrov about the Albanian deal, he gives his approval in principle, but he specifies that the deal must be carried out by sea.

‘I came to the conclusion that at a time when we wanted to get rid of so many arms, it would be good to help the armament of the Albanian army. Anyway, we had so much waste at our storehouses’, Valentin Alexandrov says now. ‘The Albanian Minister of Defense came. We contracted the delivery of a mortar battery and the necessary mines. The procedures were clear. I ordered my Deputy Hristo Tomov to prepare an order for the transportation of the mortars and the ammunitions to Varna. There they had to be loaded on ship and shipped to Duras. For me everything was settled.’

The two officers apply for license to the Inter-institutional Committee for control of arms trade; they specify that the arms are for Albania. Without being aware of the essence of the deal and the parties involved, the Committee issues the necessary licenses. Popinski also receives permission from the Bulgarian army Headquarter for the export of the mortars and the mines and signs contracts with two Bulgarian enterprises for their production - Dunarit in Ruse and Pima in Montana.

Mario Stoichkov and the President of Target, Bruno Vlahovic, negotiate the payment. It is to be made in the following way: USD 1,150 million in cash when the consignment arrives in Macedonia. USD 670,000 are to be paid to the producers, USD 480,000 are to be shared between the initiators of the deal. In addition, Stoichkov signs another contract with firm Sfinga – a subsidiary of Target for the delivery of TV sets. The Macedonian firm Aciba is to open a letter of credit in the amount of USD 1,150 million for Sfinga in Lichtenstein. The payment is to be made at presentation of the transport documents and the protocol of the delivery of the goods.

The "TV sets" are then loaded on six trucks and are on their way to Albania via Macedonia. Once in Skoplje, the shipment disappeared without trace. It is believed the mortars finished in Serbia.

Valentin Alexandrov tells about a meeting at the Presidency with President Zhelyu Zhelev. The people presents are: Prime Minister Lyuben Berov, Valentin Alexandrov himself, and the Minister of the Interior Viktor Mihailov, as well as the Head of the National Intelligence Service Gen. Brigo Asparuhov. Gen. Asparuhov reports that the resident of the Serb Secret Services in Greece has been transferred across the border near Dragoman, which looks like a demotion, but in view of the subsequent events, it is not.

Former Bulgarian president Zhelyu Zhelev refuses any comments on the theme of Yugo embargo.

Bruno Vlahovic pays only part of the sum after the arms are delivered in Macedonia. Quite worried, Popinski and Tsekov start sending letters to Vlahovic. However, this correspondence officially is on behalf of the Bulgarian Ministry of Defense. Popinski issues a letter of attorney to Mario Stoichkov to receive USD 670,000. With this document Stoichkov leaves for Belgrade on December 21, 1993 and receives the money there. On his way back on December 22, 1993, he does not declare the sum to the Serb customs officers. The Serbian custom officers, who had been tipped off in advance, founded the money and confiscated it without issuing any official document for this.

The scandal is not kept secret long in Bulgaria. On January 3, 1994 Stoyan Tsakov is dismissed summarily. He leaves for Moscow. Valentin Popinski is dismissed summarily, too, on February 15, 1994. Deputy Minister Hristo Tomov is transferred to another position at the Council of Ministers.

Afterwards the resident of the Bulgarian Military Intelligence in Moscow sends a record to Bulgaria advising the Minister of Defense to write a letter to the Minister of the Interior of Yugoslavia (‘Why should I write to him – I have no business with him’, Valentin Alexandrov asks). This letter is to be a formal request from the Ministry for the money. The Serbs are ready to give the money back. ‘I had to include a phrase in the letter – I do not remember the exact words, but this very phrase revealed that Bulgaria was not observing the Yugo embargo and it meant we were in deep shit’, says Valentin Alexandrov. ‘What is more, all of a sudden the center of these talks has been transferred to Moscow, not in Sofia’. He definitely refuses to play this game. He thinks that it was a ‘political provocation’.

Some time afterwards the Serb Military Attaché in Moscow Alexander Vasilievic is appointed Head of the Serb Military Intelligence.

The Serbs send another sign that they are willing to give the money if they receive a formal letter from the Ministry. Another refusal follows. On February 7, 1995 Valentin Popinski is arrested. A number of important documents are seized. One of them is the offer to Trident International for the delivery of Smerch rocket-launchers. Sources claim that these launchers were used to shoot down ‘Stealth’ in Serbia during the war in 1999.

On March 16, 1995 during his official visit to Moscow the incumbent Military Prosecutor Nikolai Kolev arrests Colonel Stoyan Tsakov. Stoyan Tsakov is arrested at the Bulgarian Embassy at an official meeting between the Bulgarian Minister of Defense Dimitar Pavlov and his Russian counterpart Pavel Grachov.

Popinski and Tsakov are charged with treason and espionage in conducting negotiations harming the interests of Bulgaria, as well as with illegal arms deals. The case is still pending. In 1994 the Bulgarian Socialist Party comes into power. Mario Stoichkov was last seen at the Ministry of Defense engaged in a friendly conversation with a high ranking officer. Now he is said to be living somewhere in Cyprus.

b - The Ukranian deal

The almost same "scheme", "tested" few years earlier in 1993 during so-called "Albanian deal", was used in 1999.

This Ukranian deal was mentioned during (closed for the public) parliamentary investigation of the assassination of the Yugoslav minister of Defense Pavle Bulatovic who was killed in 2000. Killers were never find. Motive for the killing, too.

General Vidoje Pantelic, who was in 1999 during NATO action in charge of military supply in Yugoslav Army said that Bruno Vlahovic appeared one day in the ministry saying he can provide equipment and weapons that Serbia needed in that moment.

“We had the first meeting in a HQ of the Target Company in Francuska Street in the center of Belgrade. I informed the general Dragoljub Ojdanic, then the chef of the staff of the Yugoslav Army, about the Vlahovic proposal. Ojdanic then contacted president Slobodan Milosevic who approved this deal. We gave some money. The idea was to give this money to Bulgarian partners, and they would allow us to transport weapons from Romania, Russia and Ukraine to Serbia via Bulgaria”, said Pantelic. Pantelic was not in position to give the names of Bulgarian partners.

But some problems appeared. There was information that munitions that arrived in Bulgaria was not in good shape, so Yugoslav Army send delegation to check this information. They found out that munitions was made 5-6 years ago, but that it was in good shape.

Lot of times passed between the first information on the problems and inspection. Meanwhile, the war in Serbia was finished. There was no need for that weapon anymore. There was no money to pay the whole business, so Army decided to give up from this project. The weapon never arrived in Serbia and it is not known what happened to them. On the other side, Vlahovic and his company Target didn’t return money.

General Sretko Kovac said that Target has received 1.250.000 DEM and 100.000 dollars and that the whole deal was 11.256.687 dollars.

Milan Djakovic, former chef of the intelligence in Yugoslav Army said he informed Minister of Defence Pavle Bulatovic about the problems with this deal. Asked, what was the reaction of Bulatovic, Djakovic said:” He was silent. He was very unsatisfied but he didn't comment.”

At 7 February 2000 Pavle Bulatovic was killed in a restaurant in Belgrade.

Nikolay Gigov

In 1995 Lenko Rankov – Chairman of Elmetengineering AD, and Nikolay Gigov – owner of Delta-G are involved in deliveries of arms, thus violating the Yugo embargo –secret services sources claim. Nikolay Gigov establishes contacts with Yugoslav citizens, who have much influence among the ruling parties in Srbska Kraina. Gigov and Rankov are intermediaries between the Yugoslav buyers and an unknown Russian firm. The export of arms from Bulgaria is carried out through official export deals of Elmetengineering AD for the Ministry of Defense of Cyprus. The airplane carrying the special products lands in Podgorica - Montenegro. By the end of 1995, using this scheme, several deals for export of special products are completed for the same end-user. Gigov and Rankov have business contacts with the Yugoslav citizen Miodrag Pushista – partner at AS-export-import – Yugoslavia. Lenko Rankov particiapates in the deals, since he has a full-scale license, although the name of his company Elmetengineering AD is not registered in any of the documents. Nobody checks if the 5000 machine guns bought from Ukraine will go to a third party.

Nikolay Gigov has very close and friendly contacts with Zhelko Razhnyatovic – Àrkan. His football team Lokomotiv-Plovdiv frequently visits Arkan's football team. There is rumor that the football team buses transferred guns for Serbia.

Among the staff of Delta-G are: he former head of the Bulgarian Army Headquarters General Lyuben Petrov, Paraskev Paraskevov – Deputy-Minister of the Interior during Zhan Videnov’s government, Dimitar Mitkov – Deputy-Minister at the Ministry of Defence during the same period, as well as a number of officers from the Bulgarian counter-intelligence.

In 2000 General Atanasov writes a report, in which he tells how the incumbent Minister of the Interior Bogomil Bonev exercised pressure the license of Delta-G to be renewed, after it was suspended earlier in 1998 for dubious deals during the Yugo embargo.

‘I refused to make a proposal because I did not find any grounds for issuing a new license to them,’ says the former Head of the National Security Service General Atanasov today. ‘My people claimed that those were the facts and we had no reasons to issue another license. I submitted the official reports to Bogomil Bonev and he agreed to sign the proposal for the issuing of the new license himself; it was not me who signed it. You see how strong the connections between Bonev and Gigov were. The curious thing is that Gigov did not make any deals after getting the license back.

In spite of the controversial history of Delta-G Nikolai Gigov is now the representative of ‘General Dynamics’ for Bulgaria. His firm mainly exports special products for the Bulgarian Ministry of Defence.

Valeri Cherny and Aviatrend

In order to avoid UN arms embargo set by UN, then Serbian president set up in 1992 complicated scheme that included setting up several cover companies in Cyprus. In the report of the Norwegian investigator Morten Torkildsen made for the Tribunal in the Hague, Milosevic with the help of the Beogradska banka representative in Cyprus open six so-called "front companies". The two biggest were Antexol and Browncourt both registered in Nicosia on Cyprus.

Large sums of cash from Serbia were deposit into these accounts and then this cash was deposited into the bank accounts of other entities. There were five such firms. One of them was Aviatrend. Beogradska Banka identified this enterprise as being supplier of arms for both police and Army.

Our investigation can reveal that Aviatrend had good business links in Serbia, Bulgaria and Ukraine. The name of this company was mentioned several years earlier in UN reports as a main arms trafficker in Africa and Middle East.

The investigation made by the International Consortium for Investigative Journalism (ICIJ) concluded that notorious arms dealer Laonind Minin was the liaison between the Moscow-based Aviatrend Company and officials all over the world.

Swiss banking records are showing that Aviatrend was registered in Gibraltar on 13 July 1994. The owners of Aviatrend were identified as Valery Cherny and Alexander Chegolev. On 16 October 1996, Cherny, Chegolev and Stepanenko were appointed as directors of Aviatrend. Valery Cherny is also a signatory of the Aviatrend accounts held in the Commercial Bank Neftinvestbank in Sofia.

Cherny, also known as Viktor Dudenkov, was born on 23 April 1949 in Russia. The latest information are showing that he is now Ukrainian citizen.

Analysts in Belgrade believe that Valery Cherny played very important role in the trafficking of arms from Russia and Ukraine to Serbia via Bulgaria. Our sources are saying that Cherny was involved in this business for almost ten years and that he had very good contacts in both Bulgaria and Serbia.

The documents we obtained are showing that his main Serbian partner was Branislav Milosevic, the brother of Serbian leader Slobodan Milosevic and many years Yugoslav ambassador in Moscow. Our source from Belgrade is claiming that Cherny was regular guest of Mr Braninslav Milosevic in Moscow.

"Cherny was seen in Belgrade as a businessman with good contacts in among officials in Kiev and Moscow and as a businessman who can do risky job very professionally. Therefore, government in Belgrade was giving him very sensitive and important deal including purchase of expensive weapons systems in Ukraine and Russia", our source said.

We can reveal that one of the biggest deals in Serbia in which Aviatrend was involved was purchase of helicopters and part of helicopters from Ukrainian companies UkrSpetzExport and Ukrinmash. For this job Aviatrend has received in 1994 year 1.700.000 DEM.

On 4 December 1997 Aviatrend received 2.3 millions of dollars in their bank account in Moscow. The money was transferred from one of the five so-called "front companies" open in Cyprus - offshore company Neocom. The Tribunal in The Hague believes that Branislav Milosevic, the brother of Slobodan Milosevic and formed Yugoslav ambassador in Moscow, controlled this account. He always denied involvement in arms trafficking.

The same off shore company Neocom transferred two week later about 1.500.000 millions of dollars to the Ukrainian arms producers Ukrinmash and Ukrspetsexport. The money was transferred to their bank account in Kiev.

Taras Kuzio said to us that Ukrinmash and Ukrspetsexport "played little role as these companies front Ukraine's public, official arms exports." "Ukraine's lax export controls (which an international team of experts who visited Ukraine in October 2002 reported on) means that illegal (unofficial) arms exports could be exported by-passing these two official companies. The official annual income generated by these two companies therefore remains only a proportion of the total generated by arms sales", said Kuzio.

On 20 January 1999 Aviatrend have received 1.200.000 dollars from company Vericon registered in Bulgaria, and on 4 February 1999 year 333.185 dollars from company Lamoral also registered in Bulgaria.

In 1997 bank authorities register several transactions from Browncourt and Antexol companies based in Cyprus to Aviatrend account all over the world.

Taras Kuzio said to us: "Aviatrend was one of the air companies involved, but these companies were simply "fronts" and often changed their names to avoid detection".

Our investigation can reveal that Aviatrend have received most money from the "front companies" Antexol and Browncourt. Investigating this case, we found out that the owner of the two companies was the same person – Ljiljana Radenkovic. Our further investigation showed she was not aware she was owner of Antexol and Browncourt and her name was used without her knowledge.

Ljiljana Radenkovic is now living in London. She became aware of what was happening in her name when she saw here name on the American “black list” of people that cannot travel to USA. The list was published in 2001.

Masis der Partought said that American noticed the activity of Avitrend and other similar activities and that from that moment (2000) the company has not active account in Cyprus on that name.

Leonid Minin

In September 1998 Bulgarian Metalchim Commerce AD Executive Director Orlin Vaglenov contacts the Director of the US Company Miltex - Sergei Shumov, who gives him an offer for the purchase of special equipment needed by the Ministry of Defense of Zambia. The inquiry is for missiles P-73Ý and Ð-27Ð. Vaglenov starts work on the execution of the deal after preliminary research, which shows that Zambia possesses arms for the inquired ammunitions. The US Company Miltex has already completed such deals with special products with other Bulgarian licensed companies. The goods are supplied by the Bulgarian Ministry of Defense Provision and Trade Department in Sofia. Miltex representative Botyo Peev Peev provides Vaglenov with an original end-user certificate for Zambia. Peev has worked also on behalf of Totaco Holdings PLC - Gibraltar.

The Bulgarian Inter-institutional Committee issues the license for the deal on October 19, 1998 and the expedition starts. Later the deal is halted due to suspicions about the authenticity of the end user certificate. After the license of Metalchim Commerce expires, it is not renewed because of a deal with a fake end-user.

In 2002 Sofia City Court registers in Sofia Miltex Inc. with 100% Ukrainian stake. The Ukrainian citizen Sergei Denisenko is the sole owner. We could not find anyone at the registration address: 7 ’13 Mart’ St. The registered in the USA Miltex Company is owned by Sergei Shoumov and the world-known arms dealer Leonid Minin. Minin – a Ukrainian citizen of Jewish origin has been to Bulgaria more than ten times. He is the representative of several arms trading companies. In one of them his partner is Victor Boot. He visits Bulgaria in 2000 3 times. In 1989 he spends some time in Bulgaria under the identity of Vladimir Kerler. It is known that he had contacts with Bulgarian employees at the representation office of Engineering and Technical Company Ltd. – Gibraltar in Sofia and Arsenal Corp. – Sofia. In the investigation of ICIJ Leonid Evtimovic Minin is classified as an international arms trafficker. In 2000 he stays in Bulgaria again, and from here he conducts correspondence on a deal for the delivery of arms to Liberia, using an end-user certificate for Cote d'Ivoire. The used certificate is issued to Aviatrend Company, based in Moscow and presided by Valeri Cherny. In arms traders circles Valeri Cherni is known as the representative of Aviatrend and of Eco Trends joint company with Russian and American stake. Both companies have offices in Moscow. He is also connected to Leonid Minin: they worked together on deals for delivery of arms for Cote d'Ivoire and Liberia. Copies of end-user certificates have been offered to several Bulgarian licensed companies.

It has been established that Leonid Minin arrived in Bulgaria on July 1, 2000 on a flight from Milan and left the country on July 13, 2000, flying for Italy.

In mid-July 2000 Daniel Zlatilov Hadjiev – representative of Cherni in Bulgaria for that period, presented the original of the end-user certificate to a Bulgarian licensed company, but the deal for the export is not authorized. Hadjiev worked for Ovanes Melik-Pashaev in the office at 1 ‘Kroum Popov’ St.; he is also the regional representative of Pashaev’s firm Joker Ltd. – Malta.

A picture of illicit trade in arms cannot be made without portraying millionaire gunrunner Leonid Minin, who was arrested in Italy in August 2000. Minin is a native of Odessa in Ukraine and emigrated to Israel in the 1972 before going into business after the collapse of the former USSR

Taras Kuzio said: "He is an associate of Alexander "Angel" Angert, a notorious Odessa godfather. In Minin's Milan hotel room, Italian police officers found 150,000 dollars in cash and half a million dollars in African diamonds. There was also a cache of 1,500 documents detailing his dealings in oil, timber, gems, and guns", Kuzio said.

The ICIJ investigation concluded that notorious arms dealer Leonind Minin was the liaison between the Moscow-based Aviatrend Company owned by Velery Cherny (we described earlier) and officials all over the world.

Among Minin’s seized documents there were copies of a purchase certificate in the name of Aviaternd owner Valery Cherny. A fax and a telex received by Minin at room 204 of the Atlantic hotel in Sofia are particularly intriguing. The fax states the Burgas airport as a transit post for the shipment.

Minin was particularly active in Liberia and had excellent contacts with president Charles Taylor. Then Yugoslav government had also very good contacts with Taylor. Former president of the Federal Republic of Yugoslavia Mr Zoran Lilic, close ally of the Serbian president Slobodan Milosevic, traveled several times during the embargo period to Liberia. It is believed he negotiated the arms export from Yugoslavia to that African country. The details of negotiations were never revealed.

Minin visited Belgrade several times during 1994, 95, 96 and 1999. Our time trace him in 1996. On March 24 he was registered in the hotel "Moscow" in Belgrade under the name Igor Osols. Our sources were unable to give us information with whom he had a meeting in Belgrade.

Minin was real owner of many air companies but in most cases the official owners were members of his family and his close business partners. Our investigation can reveal that the transport aircraft "Ilyshin 76" that crashed in Belgrade in August 1996 was registered on a Russian firm that belonged to Minin. The official owner of the aircraft was Russian military engineer, but further investigation showed that Minin was behind the company.

Immediately after the crash, police totally sealed the area near the airport Belgrade where the crash occurred. No official report about the crash was ever published. Our investigation showed that aircraft was full of equipment from Ukraine designating Liberia and that Belgrade was just transfer airport.

The pilot of the plane, who was killed in the accident, was seen as a hero in Belgrade. After he discover the failure in the plane, he was circling over Belgrade during the night for several hours trying to lose as much fuel as possible. Witnesses are still remembering that the plain was flying very low over the Belgrade. The plane collapsed when pilot tried emergency landing near the airport in the moment when the plane was totally without fuel. Without pilots efforts, this tragedy would be much more dangerous.

Transportation

Taras Kuzio is claiming that the main routes of arms transport from Ukraine to the Balkans were by air and ship. "Ukraine is a major builder of air transport cargo planes which were used for this purpose. By ship they left Odessa which is a major black market hole. The weapons came from Russia, Ukraine and the separatist enclave of Transdniestr in Moldova", said Kuzio.

By sea the destination is changed in transit and instead of heading for Africa, the ship stops at Dubrovnik or Durras. There it is unloaded. The Ukrainians export directly along the Danube for Serbia. The Danube is the main route for the Ukrainians during the Yugo embargo. The ships in international waters are not controlled.

The Swiss affair with B&R Engineering OOD – Sofia

At the beginning of 1999 the Bulgarian licensed arms dealer B & R Engineering Ltd. Sofia exports hand grenades and ammunitions for the Ministry of Defense at Cote d'Ivoire. The broker for the deal is the Swiss company Lexway Sales Company Ltd with representatives Jean-Paul Chirouse and Alexander Polischuk – Ukrainian citizen, employee at Progress Company - Ukraine. Progress Company has the following registration address: Kiev, 37-41 ‘Artema’St. It is a subsidiary of Ukrspecexport, which is the only state company that trades in arms in Ukraine. The required documents are presented and the Inter-institutional Committee authorizes the deal.

At the beginning of 2001 the Swiss authorities start an investigation of the activities of Lexway Sales Company Ltd, related to illegal arms deliveries to the Albanian separatists. Upon a request for legal support on behalf of the Swiss authorities, the Bulgarian investigation service submits information on the case. In the process of the investigation it becomes clear that the deal certificate was authentic and the Bulgarian authorities had not broken any laws issuing the license. The end user of the deal was sent to the Bulgarian company by Jean-Paul Chirous. He was recommended to B&R Engineering Ltd. by the Ukrainian citizen Alexander Polischuk who actually represented Chirous in the deal.

The intermediaries on the deal are the Cyprus company Varkiza owned by Mihail Kirevski, former military intelligence officer, and Antony Naumov. In 1994 Sofia City Court registers Varkiza Trade Representation Office in Sofia. The company is managed and represented by Antony Naumov. His name is also found in the registration documents of a number of companies. In some of them he is in partnership with Vasil Bozhkov. He is the CEO of other companies as well – they are situated mainly in Cyprus. Our numerous attempts to meet Antony Naumov have failed.

Varkiza is later re-registered as Likonex.

Moldova and Ukraine are the countries with the most liberal air traffic regimes in the world. They have a free register and in this respect they resemble Liberia and Guinea in water transportation. Ukrainian Air companies have one AN-124 – Ruslan, with Ukrainian design but produced in Russia, so at the moment it is the subject of arguments between Russia and Ukraine (AN-124 is the biggest cargo plane in the world with capacity of 100 tons). They also have about 10 IL-76 (40 tons). The rest of the aircraft is in Russia. Antonov Design Bureau is a Ukrainian company.

During the Yugo embargo the arms to Belgrade and Podgoritsa are usually carried on foreign aircraft – i.e. Ukrainian aircraft.

Experts say that the natural air route from Ukraine to Yugoslavia goes over Bulgaria. There is another fact – many of the staff at the Air Traffic Control – Sofia is closely related to Ukraine: half of them graduated from higher schools in Ukraine, many of them have mixed marriages.

The statistics of the Civil Aviation Agency for the licenses it issued for flights over Bulgaria in the direction of Serbia, Bosnia and Herzegovina for this period is very interesting. The largest number of licenses was issued to military transport aircraft from Iran and USA (remember ‘Irangate’ for Bosnia). The aircraft did not declare that they were carrying special products. ‘I suggested we should find a way to make them land,’ a former officer from Counter-intelligence says. This was not approved.

If the special products are carried by a foreign air company, no control can be exercised. After leaving Bulgaria’s air space the crew could ask for DEVIATION and land at a different destination.

Landing for technical reasons is also a common way for changing the destination. The crew usually flies with two sets of documents – the first is falsified and is used at take-off, the second is presented at landing.

There were several air companies involved in arms trafficking into Serbia. We can reveal that one of the main transported of illegal weapons from Bulgaria, Ukraine to the Balkans was British pilot

Christopher Barret-Jolley.

Before starting his business in the Balkans in mid 90s, Barret-Jolley was in the last 30 years well know arms trafficker in Western Europe.

With his company Phoenix Aviation he was in charge of arms transport from main European destinations to Africa and Middle East. In 1995 his company was in trouble and Barret-Jolley had to suspend the flights. But just a year later he bought a small BAC-1-11. According to UK Daily Express of 9 June 1996 he persuade the British authorities to allow him to fly in to Ostend in Belgium supposedly to sell the parts.

According to Guardian, he put the plane on the Liberian register and formed the new company Balkh Air. According to Guardian from 14 march 1999 “The company fly arms from Bulgaria to a worldlord in northern Afghanistan”.

But not just to Afghanistan. Out investigation showed that Barret-Jolley was very much active the transport of arms from Bulgaria and Ukraine to Serbia and former Yugoslavia.

Few months after he formed company Balkh Air, Barret-Jolley arrived in Belgrade. He decided to buy transport aircraft that belonged to the Yugoslav Army. This was the famous aircraft – it was used in 1991 for the evacuation of military personnel from Croatia and Bosnia. Crew reported that sometimes 500-600 were carried on flights. It was ferried to Belgrade and used as a VIP transportation during 1992. In 1996 it had to be placed in the storage due to poor condition of the aircraft. It had accumulated 72.385 flighthourse. In January 1997 it was bought by Jolleys Balkh Air and ferried to Ostend. From that moment, he become regular guest in Belgrade and had meeting with leading arms dealers.

Our sources are still remembering that Barret-Jollyes was famous amongst Serbian criminals for organizing parties with lot of girls and cocaine. "I remembered that once he spend month in Belgrade living on a high standard. He was meeting with lot of important guy", our source is claiming. According to our source, he didn't transporting by his planes only weapons, but also high quantities of drug. The drug dealers, in that time with good contacts in Secret Service, were providing for Barret-Jolley business for the state.

Usually, Barrett-Jolley provided a four-main crew, sometimes captaining the plane himself. On a typical mission they would expect to earn about 2.500 dollars each for a days work, our source was claiming.

The main workers were British, Ukrainian and - Serbian. One of them was crucial for this future. His name is Nikola Luzaic. This mysterious Serb was working with main mafia leaders in the region, but later he started to work for the British intelligence. He later become the main source of information regarding Barret-Jolleys work.

This 40 years old Serbian had big criminal records in Serbia but also in Great Britain and many other European countries. Our sources are claiming Luzaic had important role in all wars on the territory of former Yugoslavia. He had excellent contacts with military leader and therefore foreign traders used his to approach the important people in the administration. He was also physically fit, expert for martial art so he was also working as a bodyguard for foreign “businessman” comming to Serbia and Bosnia. He is now living in Britain under the protection of British police.

Barret-Jolley had three main ports - Ostend in Belgium, Belgrade in Serbia and Burgas in Bulgaria. From Burgas Barret-Jollye began to ferrying arms from Bulgaria to the rebels fighting in Congo.

In the British report titled “Arms to Africa” written by Sir Thomas Legg it is said that Barret-Jolley was often called upon the service of former GRU (Military Intelligence of USSR) officer Victor Bout whose fleet of Antonov aircraft has been delivering arms to war zones for more that ten years. Barret-Jolley`s Balkh Air had a very close relationship with Bout company Transaviation. The both companies were based at the Belgium airport of Ostend.

Johan Peleman, director of the organization IPIS (International Peace and Information Service) based in Belgium, said to us that “airports in Ostend, Burgas, Tirana and Belgrade were the main point for arms traffickers during 90s”. Johan Peleman said :"The Ostend operators reside in Belgium, collect their cargo from eastern European suppliers and deliver to clients across the world. Traffickers liked Ostend where the night traffic is intense and controls are irregular. During 95-96-97, airport in Belgrade, Burgas and Ostend were strategic for arms trafficking".

According to UN report Barret-Jolley was behind the transportation of more than 180 tones of arms from Bulgaria to Yemen. He was also transporting weapons from Russia and Ukraine (via Belgrade and Burgas) to Angola.

At the end of 2002 Christopher Barrett-Jolley was found guilty of smuggling a 22 pounds cargo of cocaine from Jamaica into Southend Airport in England.

As usually, the aircraft had stop over up in Belgrade and flown to Gran Canaria to refuel before heading on to Jamaica. Here the drugs were loaded and the crew flew back to Grand Canaria and then on to Southend in England claiming technical problems. Barrett-Jolley said to the court that the plane was oh his way back to Belgrade when the plane was hit by technical problems.

The plane belonged to the Nigerian company “Koda Air”. British police found the owner of the company inside plane without condense. He was drugged!

Air Sofia

Founded in 1990s as CG Air with a plane bought from the museum in Belgrade bearing the registration sign SFA, Air Sofia, owned by Lilian Todorov (who completed his studies in Ukraine) and the astronaut Georgi Ivanov, is the most aggressive Bulgarian transport company during the Yugo embargo. It is the first Bulgarian company licensed in 1994 to carry dangerous cargo. In spite of the international scandals and several crashed with heavy casualties, Air Sofia continues its flights by means of exercising all sorts of pressure. For the period 1994-1996 Air Sofia aircraft fly with technical malfunctions and with falsified documents, issued by officials of the company, that the aircraft have been serviced. Officially they are being serviced in Ukraine, from where they get falsified documents, and at the same time AN-12s fly all over the world with a very high risk for the crew; the crew are not even insured. ‘I fly not on a plane, I fly in a coffin,’ a pilot tells his wife. On February 5, 1998 he dies in the plane crash on the island of Terceira in the Azores.

During the Yugo embargo Air Sofia takes the riskiest flights to Podgoritsa, Montenegro and Belgrade. At that time the company operates the cargo planes AN-12. It leases the Ukrainian Ruslan for a period. In 1994 Air Sofia transports rocket launchers from North Korea to Pakistan, Bulgarian intelligence sources state.

USA secret services sources say that Grigorii Luchanski – President of Nordex – sells arms through Bulgaria, transporting them on the transport aircraft AN-124 Ruslan. Nordex is accused of illegal arms deals with North Korea. Intelligence sources also claim that AN-124 was used to carry Scud missiles for Saddam Hussein. A question arises: could radioactive substances also have been carried from the Russian laboratories for Iran and North Korea? At the end of 1993 – the beginning of 1994 NSA received information that Nordex is involved in such operations. ‘There is no doubt about it,’ a USA administration official states in an interview for an American daily.

AN-124 is granted on lease to the Ukrainian firm Aerotrek. They lease it to Air Sofia. The above mentioned problems arise at Air Sofia. ‘We knew only that the aircraft was leased to the Bulgarians. Luchankli himself did not deal with this at all. It (the aircraft) flew to China with a way landing in Pyongyang – North Korea. The case with the arms is connected to this landing.’ This is a quotation of the statement of the representative of Nordex in Ukraine - the oligarch Vadim Rabinovich in an interview with the German journalist Urgen Rot. Urgen Rott publishes this interview in his book ‘The Oligarch’

On June 24, 1999 the Ukrainian Security Service declares Rabinovich (at that time he already has Israeli citizenship) persona non grata for a period of 5 years. It is thought that Rabinovich provided some foreign intelligence service with classified information revealing that Ukraine delivered arms to Yugoslavia, in spite of the Yugo embargo,’ claims a Ukrainian newspaper, pointing out the reasons for this decision. However, the ban is lifted the following year.

Some sources state that in 1995 the World Customs Organization declares Air Sofia as one of the biggest arms traffickers for former Yugoslavia. We could not find any evidence supporting this in the WCO Annual report for 1995.

In 1998 Ivan Kostov’s government refuses to re-new the license of Air Sofia for transportation of special products. Astronaut Georgi Ivanov meets General Atanas Atanasov in connection with this. The meeting is a failure for Air Sofia. However, in 2000 Air Sofia already has a license - issued on the grounds of a letter from US Embassy to the Head of the NSS. In 2003 the owners of Air Sofia open the first golf course in Ihtiman – 60 km from Sofia. Among the guests attending the opening ceremony there are high-ranking officials, as well as a representative of the US Embassy in Sofia. This seems to be part of the logic after the embargo.

Victor Bout

The world-known arms trafficker Victor Boot – former Russian military intelligence officer is a regular visitor to Bulgaria: once in 1995, 3 times in 1996 (in connection with an exhibition of special products and a business meeting on September 22, 1996. Victor boots visits Arsenal – Kasanlak. He is accompanied by Russi Hubanov, Petar Mirchev and Emil Georgiev, as well as some persons from Zaire and Belgium. On the same date they visit…ing Consortium. KAS Consortium has as partners the biggest Bulgarian armaments plants: Metalchim Holding, Arsenal – Kasanlak, Beta – Cherven Briag, the Armaments plant in Sopot, Arcus – Liaskovets, Trema-Dunarit.

It is known to the public that the aircraft of Victor Boot’s company Air Cess flew empty from Ostende- Belgium and landed in Burgas to be loaded with arms and before they took off for Africa and Angola.

Victor Boot’s brother – Sergei Anatolievic Boot, born in 1961 founds Air Zory – Sofia in 1995 in partnership with Angel Karamihov (president), Ivan Minkov and Emil Georgiev; all of them employees at KAS.

Air Zori is issued a license to transport special products in 1995. The company delivers arms to the Middle East and Africa; the flights are mainly connected with KAS contracts. The company also allegedly transports arms for Yugoslavia.

Boot acts as intermediary for KAS for the deliveries of special products to the Ministry of Defense of Togo. The terms of the signed contract are POB – delivery and loading on board a plane or ship at a Bulgarian airport or port.

Air Zori does not have a license to transport military products as of August 31, 1998.

Boot and KAS attract a lot of attention with the so called Rwanda deal in February 1999, when the arms end up with UNITA. A special investigation committee is formed with the UN, chaired by Senator Fowler. For this period Air Ches makes 12 flights from Bulgaria with destinations Togo and Cairo.

‘How can we get rid of him?’ a UN representative says about Boot to a member of the press. ‘Fighting him is like trying to kill all the flies in the world.’

In 1999 the license of KAS for trade with arms is not renewed.

Johan Peleman said to us that the name of Victor Bout was mentioned the last time in an article in The New York Times four month ago. In that article it was stated that he is living normally in Moscow, without any problems.

Bout didn't visit Serbia and all his business were done through mediator. We can reveal that Ukrainian Yuriy Ryhtikov was his main contact in Belgrade.

Yurij is born in Odessa in 1959 and he arrived in Belgrade in 1989 where he married a Serbian girl. Yuriy had good contacts with Odessa mafia and they help them to get in touch with Bout. Once Bout saw Yuriy is responsible person willing to work for him, he gave him permission to negotiate in his name with Serbian officials and mafia members involved in arms trafficking.

In 1999 he set up a trade company called "Fortunex" and is still living in Belgrade.

According to UN report Viktor Bout “oversees a complex network of over 50 planes, ten of airline companies, cargo charter companies and freight-forwarding companies, many of which are involved in shipping illicit cargo”.

The names of the network companies are piled up in a protective jumble of acronyms and nationalities.

He is always denied involvement in this dirty business. His partner said for ICIJ:”We did not support specific dictators, presidents and so on. We are transport company. If you buy a ticket from A to B, we will carry”.

There was significant space devoted to Mr Bout in the 2000 UN Security Council report in connection with suspicions that he had supplied weapons for the Angolan grouping UNITA instead of for the officially declared end client.

Alexander Zhukov

Taras Kuzio said to us:" Minin, Bout and Alxander Zhukov were all involved in illegal arms trafficking to the Balkans and Africa during the 1990s. All three had (and still probably have) close ties to ruling political elites in Russia and Ukraine, as well as to the intelligence services".

Oil tycoon Alexander Zhukov (67), a millionaire resident on Italian Island of Sardinia, was the main player behind a colossal arms trade to the former Yugoslavia from 1992 to 1994. He speaks five languages, have homes all over the world, from Kiev to Tel Aviv and from Paris to London.

Born in Moscow and carrying a British passport, Zhukov and his "Sintez" company seem to be phantoms in both Russia and Ukraine. At one time lent large sums to former Soviet President Mikhail Gorbachev and was very close to his successor. He founded company "Stellar" which served as a cover for Odessa mafia, led by Nikolai Fomichev and Alexander "Angel" Angert.

A company known as "Global Technologies" produced fake certificates regarding the origin of the weapons, as well as documentation for "shadow" customers, such as Moroccans, instead of the true Balkans purchasers.

His name is unknown to the Russian businessmen. But, it seems he was very successful in arms trafficking.

The biggest registered case happened in 1994 when NATO ships in Adriatic sea seized over 13,000 tones of arms based on ship "Jadran Express". The cargo contained 30,000 kalashnikovs, 400 missiles, 50 missile firing posts, 5,000 Katusha rockets, and 32 million items of ammunition.

The cargoes, which came from Ukraine and Belarus, were supposedly to arrive in Africa but actually ended up in Croatia via a triangle operation taking in Bulgaria.

The main people in Kiev behind the transfer was former KGB agents Anatoliy Fedorenko and Dmytro Streshinsky.

In February 1992, Dmytro Streshinsky, a former citizen of Ukraine, arrived in Kiev and asked a few old friends to set up a branch of his Panamian registered company “Global Technologies International” in Kiev. The company was registered with Anatoliy Fedorenko, a former KGB officer as president and Andriy Vazhnyk as his deputy.

Streshinsky first contacted the arms sales company, “Progress”, the company dauther of UkrSpetzExport.

The first contract was signed for 4.5 million of dollars. Streshinsky produced a Moroccan false end user certificate and the arms were shipped to Casablanca.

The second deal was signed in October 1992. This contract was for 3.85 millions of dollars and the final destination was Egypt.

The weapons were loaded onto the cargo ships "Island" and "Diana Delta" and they sailed for Egypt. But this time ships ended in Croatia.

Taras Kuzio said to us that despite some accusation in the media in Ukraine, there is no evidence linking Defence Minister Yevhen Marchuk for arms trafficking in the Balkans.

"As secretary of the National Security and Defence Council (1999-2003) Marchuk accused directly and indirectly other members of the ruling elites in illegal arms sales. These accusations were particularly directed against Leonid and Andrei Derkach who had links to Minin, Bouth and Zhukov. Leonid Derkach was head of the Security Service - SBU (1997-2001) during which its main activity was illegal activities (including corruption and illegal arms sales). During Derkach's chairmanship of the SBU, he organised a "spetsoperation" to supply Iraq with Kolchuga radars, a step authorized by President Leonid Kuchma in July 2000", said Kuzio.

An UN inquiry in Ukraine couldn,t prove this allegations.

Geza Mezosy

The middle man was Geza Mezosy, who is believed to be one of the major arms traffickers with the eastern European countries. The Belgian newspaper "Le Soir" disclosed that Hungarian foreign trade company "Technika" was behind the deal.

Geza Mezosy contacted "Technika" taking advantage of his native Hungarian language and his Serbian relatives. Mezosy dealt directly with Bosnian, Croatian and Serbian customers.

He was founder of the Belgian arms-trading company "Eastronicom". Later, he founded company "Laser" in Budapest.

American Journal "Forbes" in May 1993 mentioned "Eastronicom" and Geza Mezosy as covers for the Bulgarian arms company Kintex, also suspected of violating the UN embargo against the former Yugoslavia. After his company in Belgium was shut down, he transferred to Luxembourg.

The shipping documents for the weapons were forged by Mezosy and the weapons themselves were delivered to customers by the "Adria Express", a Croatian company. Most of the money made went to Zhukovs company "Sintez" which then redistributed it.

Mezosy had close contacts with four Bulgarians, from the Bulgarian company KAS, that were arrested in Belgium as part of a police investigation. Le Soir and La Derniere Heure reported that the Belgian police had raided 18 homes in several Belgian cities as part of a large-scale investigation into a ring smuggling arms from Bulgaria and laundering money.

Finally, he moved his headquarters to South Africa. He was arrested in Pretoria in 1998 and was extradited to Belgium, where he was sentenced to three years in prison.

Allegedly, his name also appears in the files on the 1981 assassination attempt against Pope John Paul II. It might even be that the gun used by Ali Agca to shoot the pope came from Mezosy.

Johan Peleman said to us that Geza Mezosy is now free man and that he was released from the prison. Peleman was not able to give information about Mezosy present activities.

Block

Exotic example - Rita Draxler

There were even quite mysterious transaction. For example, in march 1992 the Austrian born Rita Draxler with non'identified Bulgarian partner offered to Croatia SAM rockets. In April 1992 Zagreb asks them for Stinger rockets and AK47.

In UN Congress report made by Senator from Florida McColan it is stated that Rita Draxler offered to both Croats and Serbs anti rackets "ambrust". "In that time Croats were without money. The transfer was organised by one Swiss company and transportation was organised by Nigerian company. Draxler and her partner Mario Sokolovic made agreement with the government in Zagreb - they will receive weapons and instead of money they will provide help in the transportation of nuclear weast. The nuclear material was kept in the Croatian city of Sibenic. By Serbian truck material was transported via Serbia, Bulgaria and Turkey to Baghdad".

Block

Expert Alexander Radic

Aleksandar Radic, military expert from Belgrade is claiming that the biggest amount of weapons for Croats and Muslims during the war in former Yugoslavia arrived from Ukraine.

Radic said:" Slovenia started at the end of 1990 and beginning of 1991 to buy arms from Bulgaria. First, they bought systems "metis" and "rpg 22" and than big quantity of AK47 and guns. The weapons was paid in cash.

Croatia started intensive cooperation with Ukraine and Bulgaria in 1992. "In all documents, there is one name - of general Vladimir Zagorac, then director of "RH Alarm" company. He obtained from Ukraine aircraft MIG 21, helicopter MI24, transport aircfrat AND 22, transport helicopters MI17".

I was in possession of some documents regarding of this purchase and I can tell that one purchase passed through the 22 hands of illegal arms traffickers, in order to delete traces", said Radic.

In that time Croatian bought from Ukraine 72 aircrafts MIG 21, but our sources say that just 25 aircrafts were ready for flying. The other ones were for reserve elements.

"It is not known how much Croatia paid to Ukraine for this deal, but the number that is mentioned is between 2 and 4 billions of dollars", said Radic.

Weapons were transported by ships but also by Ukrainian aircrafts and helicopters. Some of them were destroyed by the Serbian forces in Croatia.

"The biggest such incident was crashing the plan that transported weapons from the Croatian town of Pula to the Muslim forces in the Bosnian town of Bihac. The aircraft was hit over the mountain of Kapela. All members of the crew, all Ukrainians, were killed. Official Kiev tried to denied involvement in this business, saying the aircraft was transported fruits from one African country", Radic said.

Bosnian Serbs also imported Ukrainian weapons but in much lesser quantity then Croats and Muslims. Mainly, Bosnian Serbs were interested in systems "fagot" and "igla".

The most important deal some Balkans country made with Ukraine was Croatian purchase of famous system "S 300". They paid several hundreds millions of dollars. This system was send to Croatia illegally. The country of destination was marked as Africa, but it finished in Zagreb.

This was shown on military parade in Zagreb, but in fact was never functional because Ukrainians never send all necessary parts for this modern system. This scandal is still not solved between Zagreb and Kiev.

Conclusions

Ambassador Avis Bohlen - bursar of Woodrow Wilson Foundation with his paper ‘Rise and Fall of the Control over Arms Trade’ - during his lecture at the Atlantic Club in Sofia on June 2, 2003 said: ‘No proper control has been established over the arms trade yet’.

Many of the things connected with the arms trade are rumors, insinuations, theories, presumptions, unspoken things. The truth is that the key players in that game are influential and respectable citizens nowadays. The truth is that the arms trading during the Yugo embargo is a black hole for the public interest both in Bulgaria and Serbia; the states does not want to announce information about this period, and even if there is such information it is fragmentary and not accessible. Perhaps it is time the things from that controversial period were made clear, perhaps it is time the curtain coving it was raised. That’s what we are trying to do.

END

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