Export Ban Threatens “Zastava Arms” Operations and Employee Salaries
The Serbian arms manufacturer Zastava Arms is facing financial strain due to a government export ban introduced in mid-2025. The restriction, which also applies to civilian firearms exports to the U.S., has halted sales and jeopardized salaries for the company’s 2,300 employees.
Kragujevac – The oldest arms manufacturer in the Balkans, Zastava Arms a.d. from Kragujevac, marked 172 years of continuous operation on October 27 — but this year’s anniversary came under the shadow of an ongoing state-imposed export ban on weapons, introduced in mid-2025.
The restriction also includes the export of hunting and sporting firearms to the United States, a key market for the factory, resulting in stockpiled products and growing concern among employees over future salary payments.
According to Aleksandar Tadic, president of the factory’s trade union, Zastava Arms currently employs around 2,300 workers, with an average monthly wage slightly above 100,000 dinars (approx. €850).
“The export ban is causing serious difficulties because export orders were the main source of salaries for our employees. The management has so far managed to maintain regular wage payments, but we hope the government will lift the restrictions soon, as this situation endangers not only our factory,” said Tadić in a statement to FoNet.
The export halt has affected not only Zastava Arms but also a wider network of domestic defense and small-arms producers traditionally oriented toward foreign markets.
The factory’s anniversary was marked with a ceremonial session and a performance by the “Stanislav Binički” Artistic Ensemble of the Ministry of Defense, held at the Old Foundry Museum in Kragujevac.
The celebration also highlighted two significant historical milestones — 200 years since the birth of Petar Protic, the first Serbian manager of the national foundry (Topolivnica), and 145 years since the introduction of the “Kokinka” rifle, designed by Major Kosta “Koka” Milovanovic. Multimedia presentations showcased both these anniversaries and the company’s latest product line.
