Davostag

[Augustus]

 

Government Stops all Trade with the Legion,

Trade Deal Signed with NEC

8 July 5635 | Kivonia, Davostag

 

Minister of Foreign Affairs Sigrid Torsdotter, joined by the Minister of Commerce Alicia Olander and the Minister of Defence Jonathan Seglund, held a press conference around lunch to address the growing security concerns in the region, pointing towards the active bombardment of the island of Etxea. Discussing possible effects and more, as well as a concern within the private trade sector feeling unease towards this sudden act of aggression. Torsdotter then announced, after discussions with the rikspresident, that the Davostag Republic will be halting all trade with the Kundrati Legionary State until the attacks cease. Seglund added that the deployed fleets in the region will be monitoring the waters to ensure that no trade goods from Davostag will be entering into Kundrati-controlled territory. On the question regarding the security of the Davostagers in Kundrati, Torsdotter stated that she is confident that the Legion will bow down, stop the attacks and resume peaceful trade with their good partners here in the north.
 
As we can see from some companies in response to the press conference, that they will be redirecting their trade to other countries, such as Hutori, Etxea and now, possibly the NEC following a trade deal signed between Davostag and the Nadiyan Economic Community in former Trigunia. This trade deal, signed by trade representatives from both states, and joined by representatives of the All-State Defence Company (ASFK), saw a 65.4 billion DAV* deal allowing ASFK to purchase former parts of several military equipment, vehicles and crafts as well as the right to produce Davostager versions of these. The NEC, having previously defunded the armies of its member republics, were open to it, especially coming to know the intention for Davostag to halt trade with the Legion, a state they embargo. Included in the deal is for Davostag to also buy gas and oil from the NEC, providing Davostag with a greater supply of such vital resources as the military expands and for the NEC a great increase in revenue.
 
Some of the former Trigunian military equipment parts and designs, acquired by ASFK, are as following, beginning with aircrafts: Su-25, Su-33, Tu-160M2, An-178, Ka-226, Ka-31, Ka-50, Mil Mi-8, Mil Mi-24 "Hind", Mil Mi-26, and Mil Mi-28; of the naval crafts there are: Yegorovich-class aircraft carrier, Udaloy-class destroyer, Svoboda-class cruiser, Orlan-class battlecruiser, Admiral Gennadiyevich-class frigate, and Admiral Gregorov-class frigate. While ASFK have stated that they have ordered that the parts be stored and that blueprints for Davostager-designed versions be made, have said that this has been a massive cost output, and taking the amount that has been acquired, it will most likely be some 20-30 years before there each and everyone of them are put to service at the same time. The cost is a staggering 14.6% of the entire military budget, with a report from ASFK and Ministry of Defence describing that several private banks and investment companies helped alleviate the costs for the Armed Forces. As one analyst said: "It is only in Davostag that we are ready to cripple the economy for the military". While the situation is not to such a degree, the Kivonia Stock Exchange saw a lot of red these past days following the deal, with experts giving careful optimism for stabilization in the coming weeks.
 
In any case, the Secretary of Trade and Cooperation Hans Jönsson, who led the trade discussions with the NEC, said that both Davostag and NEC look forward to further cooperation, agreements and deals in the coming future, as the Davostag Republic repositions itself on the regional and international stage.
 
News report written by Lisa Johansdotter.

* (OOC: I use Swedish Crowns, SEK, to measure Davostager riksdaler. 7.2 billion US dollars equals at the time of writing about 65.4 billion SEK)