“The Rise of Bulgaria’s Arms Industry and Its Impact on the Region’s Economy and Rose Oil Industry”

Arsenal’s presence in the small town of Kazanlak, located 170 kilometers from Sofia, is ubiquitous, writes Neue Zürcher Zeitung (NCC). In addition to sponsoring the cultural center, most sports clubs and FC Rozova Dolina, “Arsenal” also provides work for about 8,000 people.

In the autumn, the number of employees of “Arsenal” was increased by 1000 people. We are looking for more people. Salaries start at BGN 1,400, which is good for Bulgaria, Borislava, who works in a cafe in the center of the city, told the NCC. “Arsenal” employees also receive shopping vouchers worth BGN 200, as well as regular bonuses, she adds. “My brother-in-law recently started working at the factory. But I’d rather sell cakes than assemble weapons,” says the waitress.

The growth in the arms trade is helping the entire region

“Arsenal” is not the only military plant in the area, notes the Swiss daily. Just 50 kilometers west of Kazanlak is Sopot, where the Military Museum is located. The reason for this concentration is topographical – the Rose Valley is a place that is easily defended. When the Arsenal factories were moved to the area around 100 years ago, the ability to defend was extremely important.

The Rose Valley is named after the second most important economic industry in the area – the production of rose oil, the NCC explains further and points out that it is for this reason that in journalistic materials about Kazanlak and its surroundings there is often a reference to the American rock band Guns N’ Roses.

But while gun production is booming, the rose oil industry is complaining of a lack of pickers. “We have no chance against Arsenal as an employer,” says Pavel Adamov. Almost no one wants to pick roses for 35 BGN a day. And yet he points out to the Swiss publication that when Arsenal is good, the whole region is also good. And currently the arms industry in the country is developing successfully: according to forecasts, exports in 2022 will be between 1.5 and 3 billion euros. In 2021, it was only 650 million.

Not only Soviet-standard ammunition matters

The reason for this rise is the war in Ukraine. Bulgarian companies produce something that is extremely important for the ongoing fighting in Donbas – ammunition. This industry dates back to the time of socialism, when Bulgaria produced more cartridges than Poland, Romania and Czechoslovakia combined, notes the NCC.

The EU knows how great Bulgaria’s potential is. That is why in March the European Commissioner for the Internal Market, Thierry Breton, visited several military enterprises, including VMZ-Sopot.

Most Bulgarian companies still produce according to the standards of the Warsaw Pact, notes the Swiss publication. These weapons are of a different caliber than those used in NATO. Therefore, the ammunition is not compatible.

Bulgaria exports to over 50 countries, an important market being the Middle East, where Soviet and Russian equipment is used. 2017, for example, when the most serious battles with the Islamic State took place, was the strongest for Bulgaria’s exports. Until the beginning of the war in Ukraine. The Ukrainian army still has large stocks of Soviet weaponry and relies on this ammunition.

But NATO-standard ammunition is gaining in importance. “For our companies, it is of interest to become part of the European supply chain,” Economy Minister Nikola Stoyanov told the NCC. “However, this redevelopment requires significant investment,” he explains. For this purpose, negotiations are currently underway with companies in Germany, France and the USA. “We have low taxes, relatively low salaries and great experience in the industry. Bulgaria is an attractive place,” adds Stoyanov.

Tihomir Bezlov from the Center for the Study of Democracy also gives a concrete example: the production cost of one bullet for a 30 mm machine gun costs $150 in the West and $30 in Bulgaria. “Bulgarian companies do not produce high-tech products. But we are very competitive when it comes to solid consumables,” he explains.

A controversial and closed industry

Emilian Gebrev’s EMKO company started a few years ago to produce NATO-standard ammunition. And with the appropriate investments, he can increase this production, he explains in a written response to the questions of the National Center for Social Sciences.

Bulgarian arms companies have long been a thorn in the Kremlin’s side, the publication notes. The authors recall the poisoning of Gebrev in 2015, as well as the frequent explosions and work accidents in his enterprises recently. This is probably one of the reasons, apart from the tradition of secrecy inherited from the Soviet era, that this industry is very closed, and those working in it avoid talking to the media. As well as the fact that the issue of weapons supplies continues to be controversial at the political level.

NCC journalists fail to conduct many of the interviews for which they send inquiries. Including the mayor of Kazanlak refuses to answer their questions and recommends that they better look at the pink fields. “Roses are simply more romantic than guns. I also prefer to talk about flowers,” rose oil producer Adamov told the Swiss newspaper.