One-fifth of the weapons manufactured in Serbia must remain in the country, according to a resolution adopted by Serbia's state leadership. No justification for the decision was provided, but the Russia-Ukraine conflict is likely to be the underlying reason. In the Balkan country weapons, military equipment and ammunition are manufactured in seven large, state-owned companies that are also engaged in the development of military technologies.

Belgrade expects a protracted war

Seven and a half months after the outbreak of the Russia-Ukraine war, Belgrade decided that one fifth of the weapons and military equipment produced in Serbia must remain in the country. The decision was not formally justified by the parties of the ruling coalition, it was only communicated it as a fact.

Seven large state-owned companies are the backbone of military production in Serbia, manufacturing weapons, military equipment and ammunition and developing military technologies. Data from the defence ministry show that the Balkan country exported weapons worth 500 million US dollars in 2021, up by one-third compared to 2020.

Photo: Serbia’s Defence Ministry

Serbia’s president announced at a recent press conference that he had signed the decree stipulating that 20 per cent of the military equipment the country produced must remain in Serbia.

In times of crises, we enhance military preparedness and replenish our supplies

„The decision by the state leadership could be related to the Russia-Ukraine war, but it is not a decision related to foreign policy. There is nothing extraordinary about enhancing military preparedness and replenishing military supplies amidst big global crises, even when there is no war,” Petar Boskovic, former head of the Public Relations Department of Serbia’s Defence Ministry, told Radio Free Europe.

The current decision is not surprising, this is how Dragan Sutanovac reacted to the decision. Serbia’s former defence minister confirmed that the great interest in Serbia-manufactured weapons didn’t start now. More than a decade ago, the demand for military equipment was also high. All this started between 2007 and 2012, when he was still head of the ministry. As he put it, at that time the factories were asking the state to allow them to take all domestically produced equipment abroad.

According to Mr Sutanovac, with the current decision, the Serb government wants to prevent a shortage of weapons in its own military.

Photo: Serbia’s Defence Ministry

„The relevant decree was formulated based on security policy considerations, in accordance with the current geopolitical situation. Its aim is to ensure that production does not go abroad and to prevent a possible lack of resources in Serbia’s armed forces,” the former minister explained.

Serbia sells weapons, but not to Ukraine

The crises rampant in the world and the protracted war are urging countries to procure as much military equipment and tools as possible. As a result, Serbia has gained a significant source of income despite the current 20-percent restriction. Belgrade believes that it can up the number of weapons sold, and consequently receive extra revenues. At the beginning of October, Aleksandar Vucic underlined that the state will spend hundreds of millions of euros on the modernisation of the sector.

„We can sell the ammunition we produce within 3 days. For each of our grenades, bombs and rockets, there are ten customers,” Mr Vucic said in mid-August, when a weapons demonstration was held at the Military Academy in Belgrade.

Serbia’s head of state did not provide additional details as to who are showing an active interest in procuring Serbian weapons. Earlier, however, he stated that Serbia is not sending weapons to Ukraine and will not allow weapons meant for Kyiv to transit its territory.