LOCAL PRESS

North Mitrovica mayor appeals to international community (Tanjug)

North Kosovska Mitrovica Mayor Goran Rakic has called on the international community to invest maximum efforts in dealing with security issues and providing a safe and secure environment for all the people in the province of Kosovo.

His appeal came after an unexploded hand grenade was found and cleared by the police in North Kosovska Mitrovica on Saturday, an area where Serbians make up the majority of the population.

Two cars were set on fire in Filip Visnjic Street on Saturday, according to preliminary investigation results, and that happened just two days after another similar incident, he stated.

“It is hard to believe that this is not a string of planned incidents intended to cause disorder and panic among the Serbian population in North Kosovska Mitrovica and Northern Kosovo in general,” Rakic stressed.

Such incidents could become an everyday occurrence in Kosovo once again unless the international community starts working on clearing up all the security issues.

He fears that inaction by the international authorities in the province would cause more apprehension and distress among the Serbian population and make pointless all activities meant to encourage internally displaced persons from Serbian ethnicity to return to their homes in Kosovo.

He also appealed to the authorities to do be responsible in their duties and follow the Brussels Agreement, meaning to ensure the safety and security of all the people in Kosovo and their property.

“Unfortunately, I have to say that nothing more than investigating the scene and reporting on the situation there, has been done so far regarding any of the attacks on Serbs and their property,” he remarked.

“EULEX does not affect the court decision” (Danas)

EULEX has no opinion on judicial decisions. It is a question for the courts, which decide on each case individually, Miguel Carvalho de Faria, of EULEX, told Danas.

The cornerstone of the judicial system is independence and EULEX respects the prosecutor’s autonomy and the independence of judges. Political interference is to be excluded from court proceedings, the Head of Press and Public Information of EULEX told Danas, regarding the accusations of GI SDP that EULEX applies “double standards” in discriminating on ethnic lines when it comes to the Serbs and Albanians in the province of Kosovo.

Ivanovic’s lawyer, Nebojsa Vlajic, announced that his client will appear before the Basic Court in the North Kosovska Mitrovica on 26 August for “preliminary” hearing, when he should make a statement about the indictment that EULEX prosecutor from the Kosovo Special Prosecution Office filed against him.

Stronger guarantees

Oliver Ivanovic is in prison for more than six months, and on 27 August, when the last two-month extension of custody is due to expire, the Court should re-declare its decision. SDP has already announced that it will seek that the Government of Serbia offer new, stronger guarantees for Ivanovic, so he could defend himself with freedom, even though the previous ones, which Belgrade has sent to EULEX, are not taken into account.

The crisis in Kosovo-Metohija – problems in the dialogue? (Tanjug)

Due to the inability to elect a provincial government, Kosovo has plunged into an institutional crisis that has stalled the EU-facilitated dialogue between Belgrade and Pristina, analysts in Kosovo-Metohija estimate.

Political parties are divided into two opposing blocs, one led by the Democratic Party of Kosovo (PDK) leader Hashim Thaci and the other led by the Alliance for the Future of Kosovo (AAK) leader Ramush Haradinaj, each of whom claims to command the majority that will form the next provincial Kosovo government.

“Serbia will not be able to join the EU with the burden of Kosovo on its shoulders, and neither will Pristina, until it sorts out relations with the Serbian community in Kosovo,” the Director of the Center for British Studies in Pristina Fadil Ljepaja said.

The process of forming the Special Court for war crimes committed by so-called paramilitary KLA has also stalled, and analysts say that, because of this, and other problems, “the image of Kosovo pales” internationally.

In addition, media reports that Kosovo was recently confronted with dangerous radicalism and extremism, evidenced by the latest arrests, while after the report of the chief prosecutor Clint Williamson, a bidding with names of potential persons who will be in the dock started, and the main KLA militants led by Thaci were also mentioned.

Ljepaja said that Hashim Thaci’s PDK, with its new, and “in many ways strange” partners, does not have enough numbers, actually it has only a third of the MPs it needs, although it has full control over the society, even the media and so-called civil society.

“This is achieved by referring to the merits of their war, and the post-war gains, especially those related to the declaration of independence. On the other hand, the new coalition led by the Democratic League of Kosovo (LDK) is not harmonious on the objectives and priorities of the new government for which they have a sufficient number of MPs, ” Lepaja said. According to his words, the “number of” MPs is determined by the concessions required, particularly those demanded by the Self-determination party.

The Kosovo Serb community assessed that it is trying to find a balance after Thaci’s government and thereby achieve a negotiating position conducive to the goals of the Serbian community in Kosovo. “Thus, with the reservations shown by the international community towards some of the goals of Self-determination, everything turned into a real political marketplace in which Thaci’s PDK offers itself to everyone, and even offers the position of Prime Minister, but again fails to collect the sufficient numbers needed to form a government ” Ljepaja said.

On the other hand, he added that the new coalition does not prioritize in a way that is acceptable to all.

“In this situation everyone calculates and the current government coalition has become destructive by virtue of its trying to maintain power at any cost,” Ljepaja says.

He believes that the recent arrests of Islamic extremists in Kosovo-Metohija were hasty and indiscriminate based on the principle of “arrest everyone with a beard” and that the fight against extremism or terrorism does not work when the whole society is dragged into it, and when it is carried out with so much noise.

“Unfortunately, I think it is a bad propaganda that works in favor of the extremists. Namely, it is not impossible that all this noise serves to conceal institutional blockages, and other important processes happening in the society, and that is the departure of a group of officials who thought that because of their war triumphs they have the right to be above the law, ” Ljepaja said.

He believes that the EU-facilitated dialogue in Brussels should be continued, although, as he assesses, it has been rather “disingenuous” so far, and both sides have been stalling the process, often accepting the agreement only after completely changing the essence of certain issues.

“In my opinion, the talks should be led by forces inclined towards the future and Europe, and not those who quibble about the past. The past is a matter of history or law. Politics does not have a lot of work there. And the future is common for all the peoples of the Balkans”.

Germany will not set new conditions for Serbia (Tanjug)

Agreements concluded by the European Union are well thought-out and do not change the way someone would like, and Germany, which strictly adheres to it, a member of the Bundestag Joseph Juratović said, adding that Germany is not setting new conditions for Serbia.

“Germany is the partner on whom you can always rely, one that would strive to the maximum for the agreement to be implemented. Conditions have been clear for a long time and are the same as they were for Slovenia and Croatia. As for Pristina, it is the smallest obstacle for Serbia, since Kosovo also wants that Serbia join the EU, because the Kosovo Albanians then have a chance to come out of their isolation, ” Juratović answered the question from “Blic” whether Germany will demand — before agreeing to the opening of membership negotiations with the EU — another agreement with Belgrade and Pristina on the full normalization of relations will need to be signed.

After last week’s talks with Prime Minister Aleksandar Vucic, Juratović said that “Serbia is seriously anxious to finally become one of the modern democratic states of the EU, where it belongs.”

“For the political leadership, the primary importance is that the citizens of Serbia get a realistic chance for economic prosperity and social security,” Juratović said.

He emphasized that Serbia has recently done a lot in regard to its path towards the EU.

“In addition to the serious intention to implement reforms, it is necessary to build good neighborly relations and cooperation with all its neighbors, as the founding countries of the EU have done” Juratović concluded.

Gasic: Tensions between Russia and the EU are not our problem (Danas, By Vuk Jeremic)

Tensions between the European Union and Russia, due to the Ukrainian crisis are not Belgrade’s problem and do not in any way threaten the great military cooperation between Serbia and Russia, Defence Minister Bratislav Gašić told Danas after a meeting with his Russian counterpart, General Sergei Shoigu.

How did the meeting with Minister Shoigu go, what was discussed and what are the conclusions?

– This is the first time we have opened all topics related to military education, military medical and Military Technical Cooperation. We talked about the possibility to send a certain number of members of our armed forces to school in Moscow, as well as the possibility that they send their people to our military academy. We talked about the recently completed tank biathlon. Of course, we thanked them for the help they sent us during the recent catastrophic floods and the assistance they provide us internationally in preserving the province of Kosovo-Metohija within the international borders of Serbia. We also conveyed our stance on the issue of Ukraine. We reiterated that Serbia is committed to the sovereignty and territorial integrity of all members of the United Nations.

What was the reaction of the Russian side to the official position of Serbia that we respect the territorial integrity of Ukraine, but will not impose sanctions on Russia?

– They were not pleased to hear that. However, they value Serbia’s position of not introducing sanctions on Russia, because they are aware that we cannot do that to a friendly and brotherly nation with which we have such a deep connection and such a large foreign trade. Why would we shoot ourselves in the foot by introducing sanctions to Russia? On the other hand, although they argue that the international community has double standards when it comes to the principle of respect for the territorial integrity of Serbia and the province of Kosovo’s secession, on one hand, as well as that of Ukraine and Crimea, this is precisely why Belgrade maintains the stance that it has.

Why is the Russian loan intended for the modernization of our armed forces temporarily frozen?

– Because we have to show more responsibility. We must not be selfish and think only about the army outside the country. In the past twelve years, when the Democratic Party (DS) was in power, Serbia became heavily indebted. We have a huge foreign debt. We are not giving up on the realization of the Russian credit for our armed forces, but we will wait for the economic situation to stabilize and then we will resume negotiations with Russia. And from existing resources, with no problems, we will be able to meet all the challenges facing the Army of Serbia.

REGIONAL PRESS

Amfilohije bothered by Montenegro’s policy against Russia (Tanjug/Vijesti)

Serbian Orthodox Church Metropolitan of Montenegro and the Littoral Amfilohije criticized the Montenegrin authorities for their policies against Russia.

He said yesterday, as quoted by the Podgorica “Vijesti”, at a national gathering in Kolasin municipality’s village of  Gornje Lipovo that “pride, self-love and love of power obscures the human mind.”

These vices, he added, are the cause of what is currently happening in the sphere of foreign policy.

“What is happening in Kiev Rus?— now called Ukraine? What is happening in Syria and what is happening in our beloved Kosovo-Metohija, what recently happened in our country, what is happening in all of these areas, and beyond that, what is it?” asked Amfilohije and assessed that the core of all the conflicts is the “love of power”.

RS: Youth the NDP against nepotism (Beta)

Youth of the National Democratic Movement (NDM) unfurled, at Krajina Square in Banja Luka, a banner with a list of officials and emphasized the nepotism in the Republika Srpska (RS) and Bosnia-Herzegovina (B&H).

About a dozen young people, with white masks, during an action which they named “Top Rated nepotists”, held the banners with the names of top government officials, senior officials of the RS’ ruling Alliance of Independent Social Democrats (SNSD) and their relatives which they have employed.

It was stated that the RS President Milorad Dodik gave his son a loan, from the Investment-Development Bank, of three million convertible marks (KM), that his daughter was chief of staff at one of the RS’ ministries, and that his best man, Ranko Skrbic, became B&H Ambassador to Serbia.

The husband of RS Prime Minister Zeljka Cvijanovic, as stated on one of the banners, is employed at the Institute for the Construction of Banja Luka, and their son is in the Transmission Company ‘Elektroprenos’ of B&H.

It was stated that the RS Minister of Finance Zoran Tegeltija’s wife is Assistant Minister of Trade of RS, while their daughter is also employed in Transmission Company ‘Elektroprenos’ of B&H, and their son-in-law in RS Banking Agency.

A son of the Minister of Finance Nikola Spiric was appointed as Secretary of the Embassy of B&H in Belgrade. A representative of the SNSD in the House of Representatives of the B&H Parliament Dusanka Majkic employed her two sons in the Tax Administration of the RS.

Director of the Tax Administration of the RS Zora Vidovic, one banner said, employed her daughter at the Central Bank of B&H, and son-in RS Banking Agency.

Youth of the NDP stated that the Bosnian Serb member of the Presidency of B&H Nebojsa Radmanovic employed his daughter at the Ministry of Administration and Local Self-Government of RS, while the Republika Srpska Parliament Speaker Igor Radojicic’s spouse is Assistant Minister of Finance of RS.

President of the Young of the NDP Djordje Praštalo said that nepotism is pervasive in the RS and that “the reckless government, a month before the election, continues to employ relatives and friends in public companies.”

“While in the RS and B&H getting employed is done along party and personal relationships, regardless of knowledge and competence, a third of young people want to leave” Praštalo warned.

Croatia sends Ukraine helicopters to fight with Russia! (Novosti)

The US Defense Department proposed that Zagreb replace its Russian-built Mi 8 MTV transport helicopters with US-built Black Hawks, after which the Croatian armed forces should send helicopters to help the Ukraine Army

Croatian Defense Minister Ante Kotromanovic and Army Chief of General Staff Drago Lovric on Thursday in Zagreb talked with representatives of the US Congress, led by Harold Rogers, the Chair of the Congressional Caucus for the distribution of federal funds.

The Croatian Air Force has 14 helicopters, of Mi 8 MTV make, and ten of the Mi 117 SH make. It is the Committee to approve the draft of the Pentagon on military aid to allied countries. One of the topics discussed was equipping the Croatian armed forces with American transport helicopters Black Hawks, the Croatian daily Jutarnji writes.

This initiative was launched a few months ago by Minister Kotromanovic in a meeting with US Vice-President Joe Biden.

Then, a possibility that Croatia could buy, from the US state of Minnesota’s National Guard, several helicopters, which are 7-8 years old, was been discussed. In the meantime, the US Defense Department and Zagreb whether Croatia would replace its transport helicopters Mi 8 MTV for “Black hoc”, Croatian helicopters would then be sent to the Ukrainian army.

Croatian military officials are intrigued about this possibility because, that way, they would be able to procure used choppers, but of a recent production.

INTERNATIONAL PRESS

EU tells Serbia not to exploit Russian Embargo (BIRN, 18 August 2014)
A meeting of EU foreign ministers on Friday said it expected candidate countries – of which Serbia is one – to “refrain from measures aimed at exploiting new trading opportunities arising from the introduction of these [Russian] measures”.
BIRN has learned that the wording of the formulation especially related to Serbia, because of its close ties to Russia and special trading agreement.
Serbian officials have made no secret of their wish to boost exports to Russia, now that the Kremlin has banned imports of food from the EU.
Serbia has resisted Western pressure to impose sanctions on Russia on account of the Kremlin’s perceived role in separatist fighting in Ukraine. It has adopted a neutral stance on the crisis in Ukraine.
Under a free-trade deal between Serbia and Russia signed in August 2000, goods produced in Serbia are subject only to a 1-per-cent tariff.
A senior EU high official told BIRN it expected compliance from Belgrade. “We expect Serbia to comply with our decisions as the country seek membership of the Union,” he said.
“We expect compliance with our foreign policy, which at the moment includes sanctions on Russia, and at the same time we expect solidarity,” he added.
“We will certainly address this in our upcoming progress report [on Serbia], where we will once more underline that we expect Serbia to fully adopt EU foreign policy,” the same source continued.
President Vladimir Putin announced a “full embargo” on food imports from the EU, the US and other Western countries in response to sanctions imposed over Ukraine on August 7.
Serbian Chamber of Commerce data show that Serbian food exports to Russia in 2014 rose by 68 per cent compared to the previous year.
They were worth $117 million in the first six months of 2014, well up on the figures for 2013, when food exports to Russia were worth $185 million for the entire year.
Serbian exports made up only a small fraction of Russia’s total foreign food needs, however. In 2013, Russia imported about $42 billion worth food and agricultural products.
Experts believe that Serbia has a chance to increase its exports to Russia of fruit, vegetables, meat products, dairy products and alcoholic beverages.
The embargo already increased the demands for Serbia’s fruit and dairy from Russian companies.
“We are receiving calls from new buyers from Russia all the time,” Vilmos Fogas, a farmer from the province of Vojvodina, told the media.
“If we could produce three times more apples, we could sell them all,” Fogas said, adding that at this moment larger production of fruit is not possible.
The owners of the Kuc dairy factory in central Serbia said they had received requests for products from 50 Russian companies in the last five days alone.
“Demand compared to last year has increased by more than 100 percent,” Mirjana Dudic, from Kuc, told Serbia’s Tanjug news agency.
Serbia’s Chamber of Commerce on Friday sent Russian counterparts a list of factories and producers that are ready to increase production in order to meet the demands of Russian market.
In 2013, Russia was Serbia’s fourth-largest importer of goods from Serbia, behind Italy, Germany and Bosnia.

Serbia rethinks NIS sale to Gazprom (New Europe, by Kostis Geropoulos, 15 August 2014)
Serbia would like to secure for itself better terms under the privatisation deal for the country’s gas giant Naftna Industrija Srbije (NIS) signed with Russian gas monopoly Gazprom Neft, Prime Minister Aleksandar Vucic told a news conference on August 14.A day earlier, Vucic said that a probe launched into the selling of NIS to Gazprom would not damage Belgrade’s relations with Moscow.
“The relevant authorities will show all that they need to show,” Vucic said, noting that Serbia has not imposed sanctions on Russia. “It seems to me that this says something about our respect,” Vucic noted, adding that he has also discussed the matter with the Russian leadership. “We have discussed some things, and the discussions about this will continue,” Vucic said.
Earlier, Serbia’s Interior Ministry said it would investigate how NIS had been privatised by Gazprom Neft five years after the government signed a 30-year energy pact with Russia that ceded control over its oil and gas market.
Interior Minister Nebojsa Stefanovic said an investigative group would be set up to study the deal’s circumstances.
On August 14, Vucic listed several issues the Serbian side is unhappy with like the profit-sharing and a lowly 3.0% mineral resource royalty fixed as part of the terms of the privatisation deal for NIS. In June, NIS said it will pay out as dividend 13.08 billion dinars (€112.7 million) from last year’s net profit of 52.3 billion dinars.
Alexei Kokin, a senior oil and gas analyst at UralSib Financial Corp, told New Europe on August 15 that NIS is an important asset for Gazprom Neft.
“They also produce some crude oil. The crude oil production is not very important. It’s probably 1% of total of Gazprom Neft. But the refinery has been modernised to some degree and management has improved very much,” Kokin said.
Serbia sealed the deal to sell its only refiner amid a gas dispute between Russia and Ukraine in late 2008 and early the following year. The contract was signed in Moscow by Gazprom Neft’s Director General Alexander Dyukov and the then Serbian Energy Minister Petar Skundric. Gazprom Neft owns 51% of shares. The majority stake was sold for €400 million. But Russia committed itself to invest €500 million into modernisation of an oil refinery in Panchevo near Belgrade what it did as promised.
NIS was sold as part of the Russian-Serbian intergovernmental agreement which also included the construction of the South Stream gas pipeline, which will transport Russian gas to Southern and Eastern Europe bypassing Ukraine, and an underground gas storage facility near the Banatski Dvor village in Vojvodina province.  Later, Gazprom bought another 5.15% of shares from the NIS minority shareholders thus increasing its stake to 56.5%.
In 2008, the Deloitte & Touche audit company, which carried out an independent assessment of the NIS deal, considered the deal to be beneficial to Serbia. NIS was evaluated at $2.2 million.
Together with the majority stake, Gazprom Neft also inherited NIS debts worth about €1 billion. “The reason why it was cheap was that actually it was burdened with debt,” Kokin told New Europe, adding that the cost to Gazprom Neft was much higher than the cash they paid to Serbia.
“It seems it would be a rather unpleasant situation for Gazprom Neft if they had to pay up another half a billion dollars for this,” he said. “If you look at Gazprom as a whole, perhaps it wouldn’t be that important. It’s something that would definitely affect the strategy of the oil subsidiary,” Kokin added.
NIS is one of the largest vertically integrated companies in Southeast Europe. Its main activities include the exploration, production and processing of oil and gas, as well as the production and retail of a wide range of petroleum products.

The UAE’s shadowy dealings in Serbia (Middle East Eye, by Rori Donaghy, 15 August 2014)
UAE is accused of using investments in Serbia’s arms trade to distribute weapons in the Middle East and act as a proxy for the US and Israel
Over the past two years the UAE has invested billions of dollars in Serbia.
The Emirati leadership has agreed lucrative deals to develop the Serbian arms industry; bought a significant stake in its national airline; and handed out multibillion dollar loans to the government.
The reasons for UAE investment in Serbia are shrouded in secrecy, although Serbian sources have revealed to MEE that they go far beyond any potential financial rewards.
The Crown Prince of Abu Dhabi Mohammed bin Zayed al-Nahyan has been accused of acting as a proxy for the US and Israel in Eastern Europe while also attempting to exploit a loosely regulated Serbian arms market to distribute weapons across the Middle East.Behind the huge investment lies the shadowy figure of exiled Palestinian strongman Mohammed Dahlan. He is said to be at the centre of a web facilitating communication between the UAE with American and Israeli intelligence figures while also aiding corrupt Emirati investments in Serbia that have lined the pockets of their political leaders.
UAE investments in Serbia
An agreement worth up to $200mn was signed between the Serbian arms company Yugoimport SDPR and the UAE’s Emirates Advanced Research and Technology Holding (EARTH) at the International Defence Exhibition in Abu Dhabi last year.
A source in Serbia told MEE the investment relates to the Serbian missile system ALAS (Advanced Light Attack System), which is a “multipurpose anti-armour weapon with effective range up to 60km”. The source said the UAE is interested in these missiles because “they should be able to destroy all existing models of tanks in the world”.
The UAE is the fourth largest arms importer in the world, according to the Stockholm International Peace Research Institute, and spent over $19bn on military equipment in 2012. With a national population of fewer than one million the UAE, in terms of arms per capita, is now widely viewed as being the most heavily armed nation on the planet.
The UAE-Serbian defence relationship is becoming increasingly close, according to the Serbian source, who said “initial forms of cooperation have been established at the level of military security agencies, military police and special units, and in the fields of information and communication technologies and cyber defence”.
While the source said the UAE is primarily interested in Serbia’s burgeoning defence industry, the Emiratis have also made numerous other investments across several industries.
One of the most prominent deals has been Abu Dhabi’s Etihad Airways buying a 49 percent stake in Serbia’s lossmaking JAT Airways in August 2013. A new company was born out of that investment, Air Serbia, with the stated aim of creating an eastern European transportation sub-hub.
The deal, however, has been criticised as corrupt by a former economic advisor to the Serbian government.
“Etihad provided a credit note, not a direct investment, in the JAT deal that will later be converted to shares,” Dusan Pavlovic, who served as advisor to the Minister of Economy in Serbia from September 2013 to January 2014, told MEE. “The Republic of Serbia is the guarantor of this credit note and if the new company goes bust it is the Serbian people who will have to pay up the 40 million euros.”
“If this were to happen an additional two million euros would have to be paid in legal fees to a company involving people close to the Serbian prime minister,” he added.
Deals involving UAE investments in Serbia are kept secret from the public because of a condition in an agreement signed between the two governments in March 2013, according to Pavlovic.
“This agreement included provisions to overrule some domestic law in Serbia. For example, any investment that comes from the UAE is given priority over local deals,” he said.
“The agreement for UAE investments in Serbia stipulates that the details of all deals must remain secret.”
Pavlovic slammed many of the most high-profile Emirati investments and criticised the Serbian government for lying to their people.
He described a proposed multibillion dollar property investment by the Emiratis in Belgrade as “totally absurd”, saying “there simply isn’t the market for luxury apartments” in a country as poor as Serbia.
He criticised the sale of agricultural land to the UAE worth hundreds of millions of dollars as preventing local Serbians from accessing huge farming areas, condemning the government’s claim that the land was derelict as a “complete lie”.
Reasons behind UAE involvement in Serbia
Serbian officials have proudly proclaimed the UAE interest in Serbia as evidence of the country emerging as a key regional player.
“The UAE believes in the political stability of Serbia, in our human capital and it [the investment] is the result of friendship and understanding between [Serbian Prime Minister] Aleksandar Vucic and Sheikh Mohammed [bin Zayed the Crown Prince of Abu Dhabi],” Sinisa Mali, economic advisor to the prime minister and candidate for the mayor of Belgrade, told Bloomberg in March this year.
While there is understood to be good personal relationships between Serbian and Emirati leaders, MEE’s Serbian sources have said geostrategic goals lie behind the UAE’s involvement in Serbia.
“The UAE may be using its close ties and investment strategies in Serbia to thwart its rival Turkey from establishing a firm foothold and spreading its economic and geopolitical influence in the Balkans,” the source told MEE. “The strategic positioning of the UAE against Turkish regional influence in the Balkans is probably the main underlying reasons for strategic cooperation between the UAE and Serbia.”
“This is probably done on the advice of the US and Israel.”
The source said the Serbians are naturally keen to counter any Turkish influence in the Balkans due to “fears Turkey may later use their power to recolonize Serbia”.
Analysts have said that Serbia is openly hostile to Turkey, pointing to their cancelling of a trilateral meeting with Turkey and Bosnia last year.
“One should keep in mind that orthodox Serbia was never too keen on Turkey’s renewed influence in the Balkans, unlike predominantly Muslim Bosnia,” Vladimir Pekic, a Serbian journalist and analyst, told MEE.
Pekic also suggested that the UAE may be investing in Serbia’s defence industry in order to counter Russian influence in the Balkans.
“What might be possible as well is that the UAE is finding a way of employing Serbia’s defence industry – as Serbia is a country that refuses to join NATO – in a way that is seen as favourable by the US and EU,” he said. “Serbia is constantly balancing between the EU and Russia in its foreign policy and the West may be keen to prevent Serbia from aligning itself too much with Vladimir Putin’s Russia in the defence sector.”
It isn’t just political manoeuvring in the Balkans that is driving UAE interest in Serbia, however, with investment in the Serbian defence industry a potential route to amplifying their power within the Middle East, according to senior banking figures.
“Last year in Belgrade I was told by a government official that the UAE want to source arms supplies to give to their ‘friends’ in the region,” Timothy Ash, head of emerging markets at Standard Bank, told MEE. “Serbia has a large arms industry and a lot of surplus military equipment. Obviously there is a market in the Middle East for high quality kit.”
“There is a very sophisticated arms sector in Serbia, with far more flexible arms export rules, and the UAE are taking advantage of that,” he added.
The UAE has run into trouble in the past for re-exporting arms in the Middle East. In 2012 Switzerland briefly suspended all arms export licenses to Abu Dhabi after reports emerged that Swiss-manufactured hand grenades, sold to the Emiratis, had been found in the hands of rebel groups in Syria.
The Swiss lifted the ban after UAE officials “assured.in writing that apart from the hand grenades, no other war material imported from Switzerland has been re-exported.”
Another area of controversy in the UAE arms industry has involved the Crown Prince of Abu Dhabi himself. The New York Times revealed in 2011 that Sheikh Mohammed had charged Erik Prince, founder of Blackwater Worldwide, with establishing a private mercenary army for the crown prince.
The army was established for various reasons, including “to put down internal revolts” in the UAE. Prince has recruited hundreds of Columbian mercenaries to the army, avoiding the hire of any Muslims as they “could not be counted on to kill fellow Muslims”.
The opportunity to explore a new arms market that is loosely regulated is clearly a draw for the UAE, Standard Bank’s Ash explained, going on to state that while the Kosovo war had caused issues in the Serbian-Emirati relationship these problems have been resolved by politicians able to see mutual benefit in restoring positive ties.
“Former Yugoslavia has historically close ties into the Middle East so there are a lot of long-dated relationships there and [Prime Minister] Vucic has taken advantage of that,” he said. “He’s cultivated those relationships and for Abu Dhabi there is the opportunity to build some nice investment opportunities.”
Mohamed Dahlan: the UAE fixer
Aleksandar Vucic was elected as prime minister of Serbia in April this year. He was previously known for his vitriolic hatred of Muslims, in 1995 he is reported as having said that Serbia “would kill 100 Muslims for every Serb who died” during the civil war.
Vucic now enjoys what he described as a “close personal friendship” with Sheikh Mohammed of Abu Dhabi.
This friendship and subsequent heavy UAE investment in Serbia was only possible because of one man: Mohammed Dahlan.
Dahlan, the former Palestinian spy chief in Gaza, has been living in exile in the UAE since he was chased out of the West Bank in June 2011. Palestinian President Mahmoud Abbas has accused him of financial embezzlement and acting as an Israeli agent involved in assassination attempts on the late Yasser Arafat.
He is now widely reported as serving as a security advisor to Sheikh Mohammed in Abu Dhabi.
Dahlan was the linchpin in improving ties between Serbia and the UAE in 2012, after relations had soured four years earlier when the Emiratis became the first Arab country to recognise Kosovo as an independent and legitimate state.
Dahlan’s mediation role hinged on his own interests in Eastern Europe, which centre on Montenegro. He was given Montenegrin citizenship in 2012, despite what Serbian analyst Pekic describes as “a very restrictive policy” that does not allow double citizenship.
Montenegrin officials have not disclosed why they gave Dahlan citizenship, but MEE’s Serbian source has suggested it could be to do with his lucrative business dealings in Montenegro, claiming “there is strong evidence Dahlan has used Montenegro to launder Palestinian money he has embezzled”.
Dahlan has numerous companies registered in Montenegro including the Levant International Incorporation, which is registered for consulting and management, and Manarah Holding, established for developing real estate projects.
There are no publicly available details about the financial dealings of these companies, although The Richest website, which calculates the wealth of public figures, has estimated Dahlan’s net worth to be in the region of $120mn.
Mohammad Rashid seems to be Dahlan’s key partner in Montenegro, appearing on the business registry of at least four of his companies. Rashid is a Kurd from Iraq who was formerly an economic advisor to Yasser Arafat.
Rashid has several companies registered in Montenegro and has received loans amounting to 13 million euros from the Djukanovic brothers, one of who, Milo, is the Montenegrin prime minister.
One of his companies, Monte Mena Investments, is also registered in Panama where his partner, according to a Serbian source, is Egyptian billionaire Samih Sawiris. In 2011 Sawiris obtained Montenegrin citizenship and is reported to be planning a billion euro investment in Montenegro’s Lustica peninsula.
Dahlan is said to have used his Montenegrin connections to facilitate a visit by Prime Minister Milo Djukanovic to the UAE last year. Serbian Prime Minister Vucic later referred to that visit as being key to improving his own previously sour relations with Montenegro when he said: “we were very pleased when Djukanovic said a few nice words about Serbia in his talks with UAE officials. He was decent enough to advise them to invest in Serbia’s defence industry.”
That advice is what led to the UAE investments in Serbia’s weapons industry in recent months.
In April 2013 the Serbian President Tomislav Nikolic – a key Vucic ally in Serbia – awarded Dahlan with the Medal of the Serbian Flag “for his contribution to peaceful cooperation and friendly relations between Serbia and the UAE”.
Dahlan could also be called upon to give advice on the arms trade as he himself is said to have experience of covertly working within it. He is accused by the Palestinian Fatah Party of being involved in shipping Israeli made arms to former Libyan leader Muammar Gaddafi. He has connections to Libya, as revealed by a WikiLeaks cable from 2010 that detailed a meeting he held in Spain with Gaddafi’s son Saif.
As well as aiding the UAE’s investments in Serbian arms, Dahlan could also be playing a key role in the alleged Emirati goal of fulfilling American and Israeli interests in Eastern Europe. A Serbian intelligence source, who asked to remain anonymous, told MEE that Dahlan has a “warm relationship” with former CIA Director George Tenet and “ties” to Amnon Shahak from the Israeli army and Yaakov Perry from Mossad.
The source said that Dahlan has connections to exposed Israeli agents in Eastern Europe too, through the Palestinian Adnan Yasin who is currently living in the Bosnian capital Sarajevo. Yasin is a former employee of the Palestinian Liberation Organisation who was arrested in Tunisia in 1993 after French security agencies “expressed concern at his activities”.
Yasin is reported as having confessed to working for Mossad in 1991.
The UAE itself has direct dealings with Israel, according to the Intelligence Online website. A report in 2012 stated that “trade between the two countries, principally in the area of security, amounted to nearly $300mn last year [2011].”
While Israel does not have an official presence in the Gulf it recently opened a “virtual embassy” on Twitter, in order to promote “dialogue with the people of the GCC region”.
Gulf monarchs are particularly sensitive to being publicly linked with Israel. Last month Saudi Arabia’s ambassador to the UK released a statement refuting claims his country, along with Egypt, were coordinating with Israel over a deadly assault on Gaza that has left nearly 2,000 Palestinians dead.
News of the UAE’s shadowy dealings in Serbia and the key role played by Mohammed Dahlan will do little to help the Gulf States in their struggle to keep dealings with Israel a secret.
As for the powerful Sheikh Mohammed bin Zayed he has described his relationship with Serbia in ambiguous terms. He has praised the “honesty of Serbian friends” and stated: “We [the UAE] believe in Serbia, we believe in our friendship.”
Due to the secretive nature of the UAE’s bilateral agreement with Serbia it is impossible to say with certainty what the goals of this relationship are. It is clear, however, that for some analysts at least, there is far more than meets the eye when it comes to the Emiratis newfound love affair with Eastern Europe.

Does religion have role in Bosnia elections? (Al Jazeera, by Mersiha Gadzo, 16 August 2014)
For the first time since Bosnia’s formation, a religious leader has signed on for presidential elections.
Sarajevo, Bosnia and Herzegovina – Sitting in a large conference room in the new Gazi Husrev Bey public library in Sarajevo, Mustafa Ceric has replaced his flowing Islamic black garb for a snug suit and tie. A white and green woven flower – the symbol of the July 11, 1995 Srebrenica genocide is pinned to his lapel whenever he attends public events.
Outside the conference room, in the auditorium, guests from around the world have arrived in Sarajevo to participate in a symposium marking the 100-year anniversary of the start of World War I. Politicians and academics have prepared speeches highlighting reconciliation and peace- concepts.
“Are we less intelligent? Are we less hardworking?” Ceric asked. “What is the secret that people who leave Bosnia and Herzegovina, who go west with nothing in their pockets end up with a job, a house; they send their children to school, and they’re even able to save up some money to send to their people who live here?”
Listed in 2012 as one of the top 50 most influential Muslims in the world by the Jordanian Royal Islamic Strategic Studies Centre, Mustafa Ceric, Bosnia’s former grand mufti of 20 years threw his bid in Bosnia’s general elections on October 12 as an independent candidate for the Bosniak (Bosnian Muslim) seat of Bosnia and Herzegovina’s tripartite presidency.
It’s the first time a former religious leader has signed up to run in Bosnia’s presidential elections since the country’s formation in December 1995 after the signing of the Dayton peace agreement, which halted the three-and-a-half years of war.
Today the country faces staggering challenges. Bosnia’s unemployment rate hovers at around 45 percent. According to a 2008 report by Bosnia’s Ministry of Human Rights and Refugees, around 1,350,000 Bosnians live outside of Bosnia – roughly a quarter of the country’s total population. News reports in Bosnia regularly feature stories of the most recent slew of medical workers moving to Germany for work and a better future.
These facts have motivated Ceric’s bid for presidency. He’s calling for a large-scale financial rescue programme designed to build up industry and remove trade barriers to restore Bosnia’s struggling economy by leading the country on the path towards NATO and EU membership.
As the newest face on Bosnia’s political scene, Ceric brings international experience and influence. He’s participated seven times in the World Economic Forum in Davos and has collected numerous international awards relating to peace and interfaith understanding.
Fluent in Bosnian, Arabic and English; educated from Cairo to Chicago; Ceric has worked as a professor in Bosnia, the United States, Malaysia and Jordan.
Two years ago, as Bosnia’s grand mufti, Ceric founded the World Bosniak Congress, the Bosniak Academy of Sciences and Arts and the Bosniak National Foundation based in Sarajevo, with the aim of uniting Bosniaks globally and strengthening their ties in the Balkans, protecting them from another potential genocide. He has labeled Bosnia as the home for all Bosniaks.
Who’s on first?
Adis Arapovic, a political analyst and manager of Bosnia’s Centre for Civil Initiatives said that he believes Ceric, as a former religious official, has as much of a chance of winning as his opponents.
“The president of Germany was a former religious official, indirectly elected, and that doesn’t bother European and German democracy, modernity and secularism,” Arapovic said.
A poll set up on Facebook – with Bosnia’s electoral commission listed as its website –  shows Emir Suljagic, a candidate from the newly formed Democratic Front party, leading for the Bosniak seat.
Suljagic is the founder and former coordinator of Bosnia’s “March First” coalition, which unites 44 civil organisations that work to bring equal rights for all Bosnians throughout the country. The coalition has achieved many goals since forming only two years ago, including raising the rate of non-Serb returnees to the Republika Srpska entity by lobbying for a series of laws in parliament that protect returnees’ rights.
Another contender is incumbent Bakir Izetbegovic, son of the late Bosnian president Alija Izetbegovic and member of the SDA party (Party of Democratic Action). In the 2010 elections, Izetbegovic beat nine candidates with 35 percent of the vote.
Fahrudin Radoncic, president of the Union for a Better Future (SBB) party and former minister of security, is also a contender this year. A total of 10 candidates are in the runing for the Bosniak seat.
Controversies
Religious figures of his stature should have no place running for public office, especially in countries like Bosnia where questions of faith are so politically charged.
– Jasmin Mujanovic, York University
Ceric has been considered a liberal and moderate Islamic leader but some of his statements made while serving as grand mufti have garnered criticism from secular Bosnians.
He has spoken highly of Sharia law but admitted it is unrealistic to implement it in Bosnia.
He’s also known for glorifying the Ottoman Empire, which ruled the Balkans for five centuries. In 2008, during a meeting with Turkish Prime Minister Tayyip Erdogan, Ceric said, “Turkey is our Mother. That’s how it always was, and it will remain like that”.
Jasmin Mujanovic, a PhD candidate of political science at York University in Toronto, believes Ceric’s candidacy to be profoundly problematic.
“Religious figures of his stature should have no place running for public office, especially in countries like Bosnia where questions of faith are so politically charged,” Mujanovic stated.
“By running for the Bosniak post of the presidency, Ceric is only furthering the idea that faith and nation are one and the same in Bosnia; in this case that Bosniak and Muslim are interchangeable identities.”
In May 2009, while visiting Serbia’s Bosniak-majority Sandzak region, Ceric said, “We are one; there is no force that could separate us,” referring to Bosniaks in both Sandzak and Bosnia. Having previously criticised Serbia’s human rights violations of Bosniaks, Ceric says that human rights in Bosnia need to be addressed first in order for the economy to pick up.
Two months are left until the elections, and minorities such as Roma and Jews still can’t run as candidates, according to Bosnia’s constitution implemented by Dayton. Ceric maintains that Dayton has made Bosnia “the black hole of human rights and human respect”.
In 2009, the European Court of Human Rights urged constitutional reform, but Bosnia still hasn’t made changes.
Mujanovic and Arapovic agree that Ceric’s lack of political experience is a handicap he will have to bear, but Ceric remains confident that the Bosniak seat of the Presidency will be added to his CV.
“You know the saying in the Bible, ‘In the beginning was the word,'” Ceric said with a smile. “At the moment, I have ideas, I have words… I believe this is a process; this is a journey.”

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Media summaries are produced for the internal use of the United Nations Office in Belgrade, UNMIK and UNHQ. The contents do not represent anything other than a selection of articles likely to be of interest to a United Nations readership.