Bulgarian Govt Proposes to Ban Sale of Two Key Arms Firms

The Bulgarian government has proposed to ban the sale of arms manufacturer VMZ-Sopot and arms trader Kintex on account of their major importance for national security.

Draft legislation to put the two wholly-state owned companies on the list of enterprises banned for privatisation would be submitted to parliament for approval, the cabinet decided at a weekly meeting on Wednesday.

VMZ-Sopot and Kintex are major elements of Bulgaria's military-industrial complex and an important element of the country's economy, national security, and presence in strategic markets, the government said in a statement.

Keeping Kintex and VMZ-Sopot in state ownership would contribute to the process of stabilisation and expansion of both companies and the military-industrial complex, the government added.

The possibility of offering the two companies for sale emerged last month when the Finance Ministry unveiled its  medium-term budget forecast. According to the forecast, privatisation procedures for VMZ and Kintex could be launched in 2018 and 2019, respectively.