KYIV. Aug 1 (Interfax-AVN) - Ukrainian state company Ukrspetsexport declined to comment on media reports that Iraq has fined Ukraine $3 million for the delayed delivery of the first shipment of BTR-4 armored personnel carriers under a sale deal between the two countries.
"We are not prepared to comment on this information or on the degree of authenticity of its sources," an Ukrspetsexport spokesman told Interfax-AVN.
On Friday, media reports, citing an alleged Trade Bank of Iraq document, said the Arab country had fined Ukraine $3 million for putting off the delivery to Iraq of the first 26 BTR-4 vehicles.
The supposed document records a $3 million payment, but its photocopy published in the media neither states the purpose of the payment nor contains any information on the shipment.
Iraq is to receive more than 400 armored vehicles, including BTR-4's, and six Antonov An-32 light transport aircraft under a 2009 contract with Progress, a subsidiary of Ukrspetsexport that is worth more than $550 million and is expected to become the first in a series of weapons trade agreements between the two countries.
Delivery of the first shipment was scheduled for late in 2010 but was put off until 2011 by agreement between Ukraine and Iraq due to the reported need for more testing of the equipment. All the supplies are to be carried through within three and a half years under the contract, which also makes provision for aircraft repair services by Ukraine.
The contract executors are the Morozov Engineering Bureau in Kharkiv, the Kharkiv Design Bureau for Engine Construction, the Malyshev Factory, also in Kharkiv, and the Antonov aircraft manufacturer in Kyiv.
The first shipment - 26 BTR-4 vehicles, two maintenance vehicles and two crew training simulators - arrived in Iraq on April 29.