Nov. 24 (Bloomberg) -- The Bulgarian government denied involvement in arms sales to the Kurdish regional government in northern Iraq, after the Washington Post reported that three planeloads of weapons were imported from Bulgaria in September.

“Bulgaria sells arms in Iraq only for the needs of the coalition forces, where each transaction is approved by U.S. authorities and the end user is the sovereign government in Baghdad,” Yavor Kuyumdjiev, deputy economy minister, said by phone in Sofia today. “The illegal-shipment reports are absurd. We cannot approve a shipment without an end-user certificate, which can be issued only by a sovereign government.”

Bulgaria joined the U.S.-led military coalition in Iraq in 2003 and has a 155-strong force serving near Baghdad. Of the 150 million euros ($192 million) worth of Bulgarian arms exports in 2007, some 4.3 million euros of small arms and ammunition were sold to the Iraqi government in Baghdad and 5.3 million euros of weapons to the U.S., said Kuyumdjiev, whose ministry issues arms export permits.

The Washington Post reported yesterday that the shipment of small arms and ammunition from Bulgaria to the Kurdish region has alarmed U.S. officials, who are concerned that Iraqi Kurds are trying to expand their control in northern Iraq. The government in Baghdad has accused Kurdish leaders of using their militia, the peshmerga, to push south from the autonomous region.

The weapons were flown to the northern city of Sulaymaniyah, the Post said, citing three unidentified U.S. military officials.

‘Transaction Is Impossible’

“Such a transaction is impossible. We have one of the of the strictest arms export control procedures in the European Union,” Kuyumdjiev said. “Nevertheless, Bulgaria has no control over what happens to an arms shipment after it reaches Baghdad.”

Bulgaria sold arms to Georgia, Algeria, India and the U.S. in 2007, Kuyumdjiev said. The former communist nation has several Soviet-era arms plants producing assault rifles, guided missiles and radio devices. The country was criticized by the U.S. in the mid-1990s for illegal arms sales to Africa.

The Balkan country was forced to tighten arms export controls to meet demands of the North Atlantic Treaty Organization and the EU, which it joined in 2004 and 2007, respectively.

To contact the reporter on this story: Elizabeth Konstantinova in Sofia at ekonstantino@bloomberg.net.

Last Updated: November 24, 2008 08:43 EST