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07/04/2006: Turkish Military To Donate $750,000 of Domestic-Produced APCs to Macedonian Army

07/04/2006: Turkish Military To Donate $750,000 of Domestic-Produced APCs to Macedonian Army

(Balkanalysis.com Security and Intelligence Brief 5) On July 3, the Macedonian Information Agency reported that the government of Turkey has made a new military grant to the Macedonian Army, with a value of $750,000. A total of $15 million worth of military equipment has been donated by Turkey since 1994.

The latest deal was signed by Macedonia’s Deputy Chief of General Staff, Major General Adil Gazafer, and Turkish Brigadier General Ali Akdogash, Chief of the Department for Defense Planning, in the presence of Turkish Ambassador to Macedonia Taner Karakash. According to MIA, the ambassador stated that the donation “aims at support to Macedonia’s efforts for integration in the Euro-Atlantic structures.â€?

The current donation will involve motorized military vehicles and means for connection “produced in Turkey and compatible with NATO standards,� announced MIA.

Turkey’s strategic interest in Macedonia owes both to its own former longtime role in the Balkans (the Ottoman Empire ruled in Macedonia until 1913), and to the opportunity it has had to gain influence in light of the continuing dispute between Macedonia and Greece over the name issue. While the two sides bickered, Turkey quietly asserted itself in the Balkans, to the detriment of Greece.

Both regional giants would like to impress their own stamp on the Balkans. So far, Greece has taken the lead economically, with major investments in all the Balkan countries. In Macedonia, however, Turkey has been trying to make up ground. The most modern shopping mall in Skopje, RamStore, was built by Turkey’s largest company, the giant Koc Holding.

It is likely that Koc has used its presence in the market to take advantage of the defense grants market. Defense sources in Skopje indicate that the “motorized vehicles� in question are going to be armored transport carriers made by the Otokar company, a subsidiary of Koc.

Otokar had the ambitious aspiration of making Turkey self-reliant for its ATC needs and even developing export channels. A Balkanalysis.com report from August 2005 discusses the details of Otokar’s production capability, its export deals and strategic aspirations. The Otokar website gives details of current international deals – without specifying countries by name – and reveals that its 2005 sales amounted to an 85 percent increase in the APC market. The largest deal was worth $88.4, for APCs destined for one of the 15 foreign countries Otokar services. The Turkish production and design were carried out with cooperation from Am General, the Indiana company that created the Humvee. Turkey’s move from being a mere recipient of military aid to becoming a competitive producer is changing the dynamic, if slowly, in regional arms sales.