Yushchenko Says Ukraine Must Improve Weapons Exports, Pledges Better Controls

KIEV, Ukraine -- Ukraine's President Viktor Yushchenko said that the country's military industry should make more efforts to improve it own weapons designs instead of exporting Soviet-designed surplus arms, the Unian news agency reported March 28.

After appointing Serhiy Bondarchuk, his ally and a prominent technocrat, as the new director of the Ukrspetsexport, Ukraine's state-run weapons exporter, Yushchenko said that "the company's future objective should be to focus more on manufacturing (of weapons), instead of (simple) trade and overhauling."

Yushchenko also said that Ukraine "should not be satisfied that it earns some $500 million (385 million euros) in weapons exports" to about a dozen other countries. "I expect a new, aggressive business approach," he was quoted as saying.

After the Soviet breakup in 1991, Ukraine inherited a sizable military industry and it remains a major producer of weapons, including missiles, aircraft and tanks.

However, the country has long been under scrutiny for murky weapons deals under the former regime of President Leonid Kuchma and Yushchenko said that Ukrspetseksport "must operate transparently, with clean hands and within the law." "Because of weapons scandals we are losing customers," Yushchenko said.

Ukrainian prosecutors acknowledged recently that 18 unarmed nuclear-capable cruise missiles were sold illegally to Iran and China by weapons dealers four years ago, during Kuchma's administration.

In 2002, the United States alleged that Kuchma had approved the sale of sophisticated Kolchuga military radars to Iraq despite U.N. sanctions against Saddam Hussein's regime, something Kuchma denied.

"We do not need ... deals that would later spark scandals," Yushchenko said.

He also pledged that the state will establish full control and supervision of weapons production, stockpiles and exports.

Last month Ukrainian authorities ordered military commanders to conduct an inventory of all military weapons and equipment in Ukraine after two anti-aircraft missile systems were discovered missing from a navy depot.