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 Minister of Defense Invented a Weapons Contract with Iraq to Save Himself from the President’s Wrath

Minister of Defense Dmitriy Salamatin has reported to Yanukovych regarding the situation of aborted contract for the supply of military equipment to Iraq. However, the agreement with the Prime-minister of Iraq that Ukrainian Minister mentions does not exist.

According to ZN.UA, the Minister of Defense reported on the success of Ukrspetsexport head Dmitriy Peregudov in resolving the situation related to the aborted contract for the supply of military equipment to Iraq. Salamatin notified the President that the Iraqi Prime Minister agreed to prolong the contract. However, the documents that ZN.UA has access to, show that no agreements were reached with the Iraqi Prime Minister.

As we previously wrote, the term of validity of the contract for the supply of APCs has expired in March 2012. The contract was not executed due to the fault of the Ukrainian party. This summer a second shipment of APCs (62 units) was delivered to Odessa. But the equipment cannot be shipped since the old contract expired and the new one has not been signed. Peregudov had to fly to Iraq to negotiate.

On August 9 Salamatin reported to Yanukovych that Extraordinary and Plenipotentiary Ambassador of the Iraqi Republic has initiated a meeting with the Minister of Defense to express his gratitude for active cooperation in military and technical fields. The Iraqi Ambassador supposedly said that "in the last two-three months the clouds hanging over the APC contract have been dispelled".

Citing the Iraqi diplomat, Salamatin has informed Yanukovych in writing that "the Iraqi Prime-minister Nouri al-Maliki has signed a corresponding government document on prolonging the above mentioned contract".

However, ZN.UA has information that at the moment of filing the report to Yanukovych (August 9) there was no "government document". And it does not exist today. Neither the old prolonged contract nor a new one.

There is one document that the media got a hold - it is the result of Peregudov's trip to Iraq. First of all, it is not a "government document". It is not signed by Iraqi Prime-minister but by one of the Ministry of Defense officials (not even the head).

Second, it is not a document on prolongation of the document that paves the way to continue equipment supply. The document is called "the memorandum of understanding". As a required condition of continuing the cooperation, it demands payment guarantee by the Ukrainian special exporter of 72,130,000 USD to the TBI Bank accepted by the Iraqi Ministry of Defense. Moreover, the Iraqi party demands the Progress Company to provide Ukrainian government guarantees regarding fair execution of obligations under the contract by the supplier. These requirements are obligatory to simply start the development and agreement of the contract supplements.

Third, the memorandum is dated August 16, while Salamatin informed the President of the success in writing a week earlier, on August 9.

And the last point - to continue the talks with Ukraine the memorandum demands the provision of bank guarantees and Ukrainian government guarantees no later than August 23. ZN.UA knows that no such guarantees were provided to Iraq by Ukraine.

 
 
 
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