In total this-year export of arms and military equipment from Serbia to Iraq, the value of which is 235m USD, Valjevo-based holding company "Krušik" will participate by supplying mortar mines of the new generation worth 32m USD - said General Manager Jovan Davidović.

- In order for this “contract of the century”, as people from the Valjevo-based corporation named it, to be successfully realized, new armory will be built in association with Srpska banka and "Yugoimport" SDPR, because the old one was destroyed during the NATO bombing in 1999 - said Davidović.

According to Davidović, construction of new armory will cost 3.2m EUR and repaired equipment that was saved from the NATO bombs will be built in it. Negotiations of import of few machines from Czech Republic are in progress.

- Before new armory is finished, armories in Bugojno, Romania and Bulgaria will be used - said Davidović.

He pointed out that other foreign partners of "Krušik", with which contracts on delivery of mortar mines worth 5m USD were signed, would not be neglected.

Davidović said that the companies that produce military equipment should receive greater support from the Government in realization of these and similar contracts, in the form of favorable credits or loans from the fund for the defense industry, which, by the decision of the Government, should have been formed in March 2005, but that has not been done yet.