The Serbian military industry will remain under state control, Defence Minister Aleksandar Vulin said in parliament on Friday.
Vulin told MPs that foreign investors can own up to 49 percent of military industry companies.
“That is not privatization, it is recapitalization and the state remains the majority owner. The point is that we will technically upgrade that industrial branch since weapons are becoming increasingly complex,” he said.
Vulin said foreign investments will not mean that employees will loose their jobs, adding that new jobs will be created. One single foreign investor can’t own more than 15 percent and will have to undergo rigorous security and other checks to see if the investment is in Serbia’s interest, the defence minister said.
Vulin said the engagement of Serbian military personnel in peace operations has both political and economic importance since the countries where those personnel are deployed often need reconstruction.