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Belgrade Media Report 11 March 2015

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STORIES FROM LOCAL PRESS

• Djuric: Serbs not returning to Kosovo institutions (Tanjug/RTS)
• EP adopts resolution on Serbia (Tanjug/Beta)
• Stefanovic: Serbia is safe (Radio Serbia)
• Veljovic, Maxhuni: Stop migrants (Tanjug/Novosti)
• Hoti: No dismissal of 50 Serb policemen (Danas)
• Kosovo liaison officer on a visit to Bujanovac (B92)
• Novosti Internet poll
• Davenport: Chapters 23 and 24 in focus of attention (Tanjug)

STORIES FROM REGIONAL PRESS

• Izetbegovic: We’re close to a solution; Covic: Council of Ministers, FB&H government should be appointed Friday (Oslobodjenje)
• Covic not giving up on the Ministry of Finance (Nezavisne)
• Srebrenica divided B&H again (Nezavisne)

RELEVANT ARTICLES FROM INTERNATIONAL MEDIA SOURCES

• Group Buys Montenegro’s Leading Defense Firm (Defense News)
• Croatia looking at privatisation of state power company-minister (Reuters)
• Croatia and Montenegro to build pipeline for gas from Azerbaijan (Azerbaijan News)
• Croatians ‘sleep-walking’ into destroying tourism with Adriatic energy industry (The Guardian)

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LOCAL PRESS

 

Djuric: Serbs not returning to Kosovo institutions (Tanjug/RTS)

The representative of the Serb (Srpska) List will not return to the provincial government and provisional institutions until the elements of the agreement from the coalition government with Albanian parties in Kosovo and Metohija are fulfilled and the Serbs respected, the Head of the Office for Kosovo and Metohija Marko Djuric said. He said this following the meeting of Kosovo Serb representatives with him and Serbian Prime Minister Aleksandar Vucic, stressing that an urgent session would be held in the course of next week with representatives of all Serb municipalities where they will discuss further moves following the dismissal of minister Aleksandar Jabalnovic from the Kosovo government and “political degradation of the Serb nation”. “We didn’t enter the government in order to be a decoration nor will we take part as long as someone thinks that we should be a decoration,” said Djuric, adding that this is the stand of all Serb representatives who were supported by Prime Minister Vucic. Djuric pointed out that the Serb List is ready to talk with the Albanians, but that it will not accept intimidation and humiliation, and that it will continue to work towards improving the living conditions of the Serb population in Kosovo. Djuric announced that the Serb representatives would once a month hold meetings with the prime minister and representatives of the Office for Kosovo and Metohija in Belgrade. He said all decisions would be passed unanimously and in agreement with Prime Minister Vucic and the Serbian government and that they would work towards creating economic and political conditions for the Serbs to stay in Kosovo and Metohija. Asked whether this join session was the right moment to launch the formation of the Union of Serb Municipalities, Djuric said we should create events on the ground, and consider their formalization later. “When you look at the conclusions of today’s meetings, you will get a clear answer as to the direction in which things have been developing,” he said. According to Djuric, Oliver Ivanovic also called from prison to begin joint action of Serbs and added that the Serbs are ready to start acting in this way. “They will start creating political unity,” said Djuric. He specified that none of the key elements from the coalition agreement with the Albanians has been respected, giving the example of privatization, problems in regard to property, as well as dismissing minister Jablanovic from the government.

Former minister in the Kosovo government Aleksandar Jablanovic told the press that Kosovo Serb representatives should change nothing in their work, but only stand more united in their positions. “Our ideas and vocabulary that was appropriate at all times will not change. My measured statements concerning the attack on returnees in Djakovica was used as a reason to dismiss me, although it was essentially meant as a warning to Serbs,” he said, and added that Serbs in the province would not benefit from his return to the Kosovo government. Jablanovic added that there was no blackmail from Pristina concerning the possibility of him rejoining the government. “Albanians did not elect us, so they could not blackmail us,” he said. “After today’s meeting there is no doubt that we will not take part in something that is political farce,” said Jablanovic.
EP adopts resolution on Serbia (Tanjug/Beta)

Members of the European Parliament adopted a resolution on Serbia based on the proposal of European Parliament Rapporteur for Serbia David McAllister. Previously, MPs adopted three of seven amendments to the revised version of McAllister’s report referring to Serbia’s competences for trials concerning war crimes in former Yugoslavia, position of ombudsman, and progress in normalization of Belgrade-Pristina relations. The final text commends Serbia for progress in the reform process, development of good neighborly relations, and dialogue with Pristina and the Council of Europe is requested to open negotiating chapters as soon as possible. At the same time, the resolution also includes criticism over violation of freedom of expression and position of independent institutions, as well as over Serbia’s rejection to join European sanctions against Russia.

McAllister stated after the adoption of resolution that Belgrade’s commitment to the EU and reforms undertaken by the government deserve respect and support of Brussels, and pointed to the importance of further progress in terms of reforms. The Serbian government is dealing with systemic, social and economic reforms. This deserves our respect and support. The Serbian parliament recently adopted important laws on whistle blowers, media, labor, privatization and bankruptcy. This represents positive development, emphasized McAllister.

 

Stefanovic: Serbia is safe (Radio Serbia, by Jelica Tapuskovic)

Although in the last trimester of 2014 the number of cases involving drug trafficking, theft and robbery, corruption, and disorderly conduct was diminished comparing to the same period in 2013, the number of attempts at illegal border crossing, human trafficking and domestic violence was increased, Serbian Interior Minister Nebojsa Stefanovic said before the parliamentary Committee for Defense and Interior Affairs. While presenting the report on work of his ministry from October to December 2104, he has pointed that the overall situation in Serbia is safe and secure. With regards to the work of the police in the last three months of the last year Stefanovic has emphasized that the number of drug trafficking cases was decreased four times over, and he sees the reason for that in the stronger internal control within the police, which lead to the discovery of the police members who had been cooperating with criminals. The Minister was particularly concerned with the rise of the domestic violence by 10%, and the illegal migrations through Serbia by 3%, mostly the citizens of Afro-Asian countries. According to him, more and more guides who take the migrants to the border are under age, so in line with the current laws they cannot be tried, and in turn they repeat the same offenses. Stefanovic has also pointed that the public law and order has been maintained despite numerous public events that were organized in the relevant period – military parade and sporting events. The safety in traffic was also improved, as seen in the lesser number of the victims, and the minister has announced that the amendments to the law on traffic will soon be before the MPs. Those changes will not entail just the confiscation of the permit, but of the vehicle as well, if the driver is caught with 2 units of alcohol in the blood. The end of 2014 was marked by the growing number of forged documents at the degree of 25%, mostly foreign passports that are not protected as well as the Serbian one, Stefanovic noted. “More than three thousand pieces of fire arms have been registered, and on March 4 this year we have initiated the action of weapon legalization, which will last for three months. I expect a considerable number of illegal weapons and ammunition to be turned over in that period,” he said. The members of the parliamentary board were interested if the internal affairs control within the police will be further reinforced. They also wanted to know how is it possible that a certain Albanian businessman, mentioned as a drug lord, can be appearing in public and walking through Belgrade, buying a house in nicer section of the city and associating with celebrities. Some of the MPs asked when the new law on the police would be in the parliamentary procedure, why the Serb police is not integrated with the Kosovo police, why is the administrative line with the province not guarded well enough so sporadic gunshots are fired, the forests are cut illegally, and Serbian citizens are attacked.

Besides Stefanovic, the session was also attended by the Police Director Milorad Veljovic, the assistant minister and head of the emergency situation sector, as well as other members of the Ministry of Interior. The nine present members of the board for defense and interior affairs have unanimously adopted the report.

 

Veljovic, Maxhuni: Stop migrants (Tanjug/Novosti)

Serbian Police Director Milorad Veljovic met in Belgrade Tuesday with the Police Director from Pristina Shpend Maxhuni in the presence of EULEX Deputy Head Alban Ragg. They discussed the issue of increased influx of migrants from Kosovo and Metohija, through Serbia propert, to the EU countries, the Serbian Ministry of Interior said in a release. The police directors also talked about joint efforts in the fight against all forms of organized crime and security related incidents along the administrative line with the Autonomous Province of Kosovo and Metohija. Veljovic and Maxhuni also discussed the ongoing investigation into the killing of Serbian Gendarmerie member Stevan Sindjelic, who received fatal gunshot wounds when several persons of Albanian ethnicity opened fire at a Gendarmerie checkpoint near the Merdare crossing in northern Kosovo in August last year.

 

Hoti: No dismissal of 50 Serb policemen (Danas)

The spokesperson of the Kosovo Police Service (KPS) Besim Hoti has told Danas that members of this service, brothers Miodrag and Milan Lekic, had been “temporarily suspended over administrative measures and over penalties”. According to Hoti, the Lekic brothers are part of the investigative process conducted by EULEX over the murder of the member of Rosu special units Enver Zumberi and this is why they cannot temporarily perform duty. Hoti denies the claims of the Pristina media and Serb mayors in northern Kosovo that another 50 Serb policemen had been suspended in the KPS in this part of Kosovo and Metohija. “There are no decisions on suspensions. The stories about 50 dismissals are not true nor do they have anything to do with the Zumberi case,” claims Hoti. Leposavic Mayor Dragan Jablanovic explains for Danas that the Serbs find “unacceptable the dismissals in the KPS in the north and that any such decision will cause far-reaching security and political implications”. “Miodrag Lekic is the third person in the KPS regional directorate – the head of operations in North Mitrovica. He was promoted in September, after he passed rigorous intelligence and security examinations. His brother is an ordinary policeman in the KPS. Both were interrogated in EULEX, and then they released them, after which internal control suspended them, claiming this is at EULEX’s request. Four of us mayors from the north visited the EU Mission, where they claimed that they have nothing to do with the suspension of the Lekic brothers. During the visit to Pristina, the commanders were presented a list of the KPS and EULEX with 50 Serbs from the police to be suspended in the north,” says Jablanovic. He notes that the mayors haven’t yet addressed Belgrade for assistance, because they are waiting for the decisions for 50 suspended Serb policemen. “If these decisions arrive, the question is whether there will be Serbs in the KPS. All of them 500 will return belts, which is unfortunate for the Brussels agreement that Pristina has not respected even when it comes to the integration of all members of the Serbian Interior from northern Kosovo who applied for the KPS. We want to be told why the KPS command in Pristina intends to carry out personnel changes when the Region North was declared the best one in 2014 of all seven in Kosovo. This police officer command was elected in Brussels at the proposal of all four mayors,” Dragan Jablanovic said.

 

Kosovo liaison officer on a visit to Bujanovac (B92)

The Kosovo Assembly, government and all institutions will help more than in the past to resolve quickly the accumulated problems of education of the Albanians in Bujanovac, Presevo and Medvedja. This was concluded after talks with the Albanian representatives in Bujanovac by Valdet Sadiku, Kosovo liaison officer and Naim Hasani, the Chairman of the Commission for Education of the Kosovo Assembly. Shaip Kamberi, the Serbian MP, tells B92 that he and his parliamentary colleague Riza Halimi and the Chairman of the National Council of Albanians Jonuz Musliu, reached agreement with the parliamentary delegation headed by Hasani and Sadiku. “We received confirmation in talks that the Kosovo Assembly, government and all institutions will directly deal with the resolution of accumulated problems of the Albanians in the Presevo Valley. We agreed that this issue must be the subject of the Brussels dialogue between Pristina and Belgrade,” said Kamberi. He explained that a huge number of Albanians who were educated in Kosovo, due to the nature of the education system, have been suffering for years because official Belgrade doesn’t recognize Kosovo diplomas. On the second day of the visit to southern Serbia, the high-level parliamentary delegation from Kosovo, will discuss the same issues with the Mayors of Bujanovac and Presevo, Nagip Arifi and Ragmi Mustafa respectively. Before leaving Bujanovac, Naim Hasani and Valdet Sadiku will lay wreaths on the grave of Ridvan Cazim, better known among the Albanians as “Commander Leshi” who was killed in May 2001 during the clashes in southern Serbia.

 

Novosti Internet poll

Do you support the departure of Serbian soldiers to the UN and EU peacekeeping missions abroad?

74.21 percent answered ‘no’

21.79 percent answered ‘yes’

4 percent answered ‘don’t have a stand’

 

Davenport: Chapters 23 and 24 in focus of attention (Tanjug)

The Head of the EU Delegation to Serbia Michael Davenport voiced hope that the preparation of action plans for opening of Chapters 23 and 24 in the Serbia-EU accession talks would be completed soon and that the two chapters would be opened shortly thereon. “We have completed the stage of technical reviews for all 35 chapters in the talks, and the preparation of action plans for the opening of the first two chapters, Chapters 23 and 24 on the judiciary and fundamental rights and fight against corruption, is underway,” Davenport told reporters at the Faculty of Law of Belgrade University. He expressed the hope that the task would be completed within the next few weeks and months and that the chapters would be opened as soon as possible. “The two chapters are in the focus of our attention and implementation of all obligations which Belgrade has in keeping with the April 2013 agreement with Pristina will be conducted simultaneously,” Davenport said and reiterated that the dialogue on the political level has been restored, which is a highly positive sign for further course of the negotiations.

 

REGIONAL PRESS

 

Izetbegovic: We’re close to a solution; Covic: Council of Ministers, FB&H government should be appointed Friday (Oslobodjenje)

Bakir Izetbegovic, the Vice-President of the Party of Democratic Action (SDA), after holding two meetings with Croatian Democratic Union (HDZ) leader Dragan Covic and member of the Democratic Front (DF) Damir Becirovic, said that they are close to a solution around forming a Federal government. “We are very close to a solution, more than that for now I cannot say. I hope that we will complete everything tomorrow or the day after,” said Izetbegovic. “There should be a solution that on Friday we have a Council of Ministers and a FB&H government,” said Dragan Covic, the HDZ president, after meeting twice with Izetbegovic. He confirmed that the FB&H finance ministry would go to the HDZ. If the Democratic Font did not wish to give up the position, Covic said that they “have no interlocutor in the HDZ”. For today meetings around the formation of government in the B&H Presidency building have finished, and will continue tomorrow, as Bakir Izetbegovic said.

 

Covic not giving up on the Ministry of Finance (Nezavisne)

It was dramatic yesterday at the B&H Presidency, where the talks on forming a government in the Federation were held. The leaders of two of the three parties in February agreed to create a Federation authority. Bakir Izetbegovic (SDA) and Dragan Covic (HDZ) met twice yesterday in an attempt to reach a final agreement. After the second meeting, held in the late afternoon, a large group of reporters was first addressed by Bakir Izetbegovic, the Deputy-President of the SDA, who confirmed that he had two meetings with Dragan Covic, and with a representative of the Democratic Front, which he did not name. Nezavisne, however, found out that it was Damir Becirovic, member of the Presidency of the DF, who was at the meeting instead of the party leader Zeljko Komsic, who was unable to come. Izetbegovic did not want to present any details of talks with Covic, but he confirmed they are close to an agreement. Asked whether the negotiations are affected by Covic’s position of the HDZ not giving up on the Ministry of Finance, Izetbegovic said: “Of course they are affected” but did not explain in which context.

Dragan Covic, the President of the Croatian Democratic Union, said that he expects that his party, the SDA and the DF, will come to an agreement on Friday to form the government of the Federation, as well as the Council of Ministers. “I think we are heading towards a solution, providing that the HDZ will not give up on the Ministry of Finance. If the DF continues to insist on having that position, they will have no counterparts in the HDZ,” said Covic, who said that the HDZ is not giving up on having the six ministries in the government. The HDZ President said that the position of his party is that some of the positions are undebatable, while they can make a compromise on the other ones. The leader of the HDZ B&H added that the agreement that was reached by the DF and SDA on Sunday is a bit hazy, but that he is generally willing to make some concessions. Asked whether he’s talking about the agreement “five plus five plus five” and one shared ministry, Covic said that even he does not know what it means. “And what does that mean? I’m not exactly sure what it means, everything is so mysterious and in the fog,” said Covic. Izetbegovic has presented Covic with the details of the agreement that was reached with the representatives of the Democratic Front at the meeting in Sarajevo and said that Covic has in general agreed with the agreement reached by him and Komsic, and that he is now attempting to contact Komsic and invite him to the meeting. The SDA and the DF have agreed that each of the three parties that would form a parliamentary majority in the FB&H government would get five ministries and that one ministry shares tri-party consent. According to unofficial information, the DF might give up on the Ministry of Finance, providing that it receives the Ministry of Agriculture.

 

Srebrenica divided B&H again (Nezavisne)

The announcement that the United Kingdom with the support of the Netherlands and the United States could refer the resolution to the UN Security Council to declare the July 11th “International victims of the genocide Remembrance Day” divided B&H again. While the Serb representatives argue that it is pointless and that genocide didn’t happened, the representatives of the Bosniak people argue that such a resolution is necessary and that it was unequivocally established that there was genocide in Srebrenica. For Dusanka Majkic, the initiative of Great Britain, represents the creation of the truth by the will of the powerful, not the righteous, because the aim of such initiative is to send black-and-white images from B&H, although it is known that the events should be judged after some time has passed. “It’s a one-sided view of the tragedy that happened in B&H, because if we would have approximately the same view on these events, then we would all see that the victims are on all sides and that this is the way how the things should be judged,” said Majkic. On the other hand, the Bosniak parties say that the world needs the International victims of the genocide Remembrance Day considering that it was unequivocally established that the genocide was committed in Srebrenica. “The court’s ruling has clearly demonstrated what it was. For that has happened in Srebrenica, by all accounts, it was a genocide and I hope that something like this never happens to anyone ever again,” said Senad Bratic, the Vice-President of the RS National Assembly from the SDA, adding that he sees nothing controversial about the United Nations commemorating the tragedy of Srebrenica as the International victims of the genocide Remembrance Day. On the other hand there is an opinion that the UK initiative is a result of the Bosniak lobbying and that eventual proclamation of the Srebrenica genocide remembrance day will not be widely accepted, especially in B&H. Proponents of this, so far, sharpest resolution on Srebrenica requested greater cooperation in the world in order to preventively warn on the danger of genocide or other serious international crimes. In addition, the Member States that have not yet ratified or approved the Convention on the Prevention and Punishment of the Crime of Genocide were invited to consider the issue as a priority. The resolution also strongly condemns the denial of the Srebrenica genocide. Momcilo Cvjetinovic, the President of the local SDS in Srebrenica, says that the international community has so far done everything to prevent the reconciliation between peoples of B&H. Maureen Cormack, the US Ambassador to B&H, will visit the municipality of Srebrenica, the US Embassy in B&H announced. Cormack is to meet with officials of the municipality of Srebrenica, representatives of associations of families of the victims and with the representatives of local NGOs. Also, as stated by the US Embassy, ​​ Cormack plans to visit a primary school in Srebrenica.

 

INTERNATIONAL PRESS

 

Group Buys Montenegro’s Leading Defense Firm (Defense News, by Jaroslaw Adamowski, 9 March 2015)

WARSAW — An Israeli-Serbian consortium has purchased Montenegro’s leading defense company, Montenegro Defence Industry (Vojna Industrija Crne Gore), the country’s Privatization and Capital Investment Council said in a statement. The two investors, Israel’s A.T.L. Atlantic Technologies Ltd. and Serbia’s CPR-Impex, have agreed on an investment package to ensure the development of new products, worth some €400,000 (US $450,000), on top of the €680,000 it will pay the Montenegrin Treasury. “The consortium plans to significantly increase the export of arms and military equipment produced in Montenegro and… [invest] in new production capacity,” the statement said. The deal was finalized on March 4. Under the deal, Montenegro Defence Industry will introduce new products by the end of 2015, and maintain the company’s workforce at its current level over a period of at least three years, according to the statement.

The group comprises five entities:

• Jugoimport Mont, which specializes in foreign arms trade

• Krusik 4. Novembar, manufacturer of missile engines, detonators and various equipment

• Fets 1. Decembar, producer of electronic and communication systems;

• Explosives maker Poliex

• Prva Petoletka Namenska, which specializes in manufacturing hydraulic and pneumatic systems.

The Montenegrin group says it exports its products to some 20 countries. These include the UK, Germany, Greece, Macedonia, Syria, Pakistan, India, China and Egypt.

 

Croatia looking at privatisation of state power company-minister (Reuters, by Maja Zuvela, 10 March 2015)

BUDVA, Montenegro, March 10 – Croatia’s government is to appoint advisers to look at the possibility of selling up to 25 percent of state power company HEP Group via a share market flotation, Economy Minister Ivan Vrdoljak said on Tuesday. “After a risk and benefit assessment we will decide about the IPO size but I am positive it will not exceed 25 percent of the company shares,” he told Reuters on the sidelines of an energy summit in Budva, Montenegro. HEP reported revenues of 14.8 billion Croatian kuna ($2.08 billion) in 2013 and 6.51 billion kuna in the first six months of last year, a drop of 15.5 percent on the same period of 2013.

PLANS FOR LIQUEFIED GAS IMPORT TERMINAL

He also said the government is about to commission a feasibility study for the construction of a liquefied natural gas (LNG) import terminal in the northern Adriatic, which would serve central and southeast European markets. The plans have been on the table for more than a decade but interest has been rekindled by Europe’s desire to reduce its reliance on Russian gas imports, which prompted Russia late last year to cancel its South Stream pipeline project. The terminal would be built on the island of Krk, at the southern end of a gas pipeline corridor connecting Croatia and Poland’s Baltic port of Swinoujscie by 2020. “We are due to sign a deal with consultants who will complete a feasibility study by the end of this year,” Vrdoljak said. “The final decision will be taken in the first quarter of 2016,” he added.Croatia is due to hold a general election in late 2015, with opinion polls currently putting the conservative opposition just in front of the ruling centre-left bloc. Mladen Antunovic, managing director of LNG Croatia, said the company would invite expressions of interest from potential investors in the project before July. “After the cancellation of the South Stream pipeline project this is the most realistic and logical project for southeast and central Europe” he said. The terminal’s tentative value is seen at around 600 million euros ($645 million) and its capacity at between 4 and 6 billion cubic metres (bcm) of gas a year. Croatia, which joined the European Union in 2013, currently consumes 2.7 bcm of gas annually, producing 60 percent of its own needs. In January it awarded 10 oil and gas exploration licences in the Adriatic and Vrdoljak said contracts with the winning bidders would be signed in May. He said blocks that had attracted no interest in the first round will be offered again later this year. ($1 = 0.9301 euros) ($1 = 7.1094 kuna) (Editing by Greg Mahlich)

 

Croatia and Montenegro to build pipeline for gas from Azerbaijan (Azerbaijan News, 11 March 2015)  

Balkan countries are trying to diversify their energy supplies to the region within growing political and economic influence of Russia. In particular, Croatia and Montenegro are going to build a natural gas pipeline that will join the project TAP over the next five years. Oxu.Az reports with reference to Bloomberg that Croatian and Montenegrin section of the pipeline will stretch along the Adriatic coast. Zagreb and Podgorica are going to spend EUR 700 mln on the construction of the GTS. The statement came from the Minister of Economy of Croatia and Montenegro Ivan Vrdoylak and Vladimir Kavaric speaking at a joint press conference in Budva. “All countries in the region want to join the TAP. This is also a great opportunity for Montenegro to make a profit by selling the produced gas through the pipeline,” Kavaric said. “There is a political will. Now you have to gather investors and regulators to discuss transit costs. We also would like to include Bosnia and Herzegovina in this project,” Vrdoylak added. GTS TAP is designed to deliver the Azerbaijani gas to Europe. This is the only project to date on the diversification of energy supplies to the EU, which is active. BP has invested $ 28 bn in the development of the Azerbaijani “Shah Deniz” field, from which it plans to sell 16 bn cubic meters of gas per year to Turkey and Europe. The company’s partners are Statoil ASA, Total SA and the Azerbaijani state oil company SOCAR. The establishment of TAP project with the participation of Ukraine, Hungary and Croatia was spoken of in 2013. But now, against the background of the war in the Donbass, it became particularly relevant.

 

Croatians ‘sleep-walking’ into destroying tourism with Adriatic energy industry (The Guardian, by Cherie Booth, 9 March 2015)

As Cherie Booth speaks at a summit on energy exploration on Montenegro and Croatia’s pristine coast, opponents vow to fight industry ‘until our last breath’ – at a beach in Budva, Montenegro, the prospect of oil and gas exploration is attracting opposition.

An ancient walled city on a sparkling sea, surrounded by beaches and backed by the Dinaric Alps, Budva in Montenegro is one of dozens of Venetian-influenced towns along the Adriatic coast and the centrepiece of a tourism boom. Holidaymakers are drawn by Croatian islands such as Hvar, favoured by yachters, and Pag, popular with partygoers and foodies alike, as well as the famous city of Dubrovnik, known as the “Pearl of the Adriatic”. However, concerns are rising that this could all be jeopardised by the growth of the oil and gas industry. Amid growing opposition to offshore development in one of Europe’s top travel destinations, a conference promoting Adriatic oil and gas exploration is being held in Budva on Tuesday. Government ministers, energy industry executives and financiers will discuss “key legal issues surrounding oil and gas exploration”. The keynote speaker is Cherie Booth, wife of the former prime minister Tony Blair, in her capacity as chair of Omnia Strategy, a law firm she set up to “provide strategic counsel to governments”, including those of Gabon and Kazakhstan. Supporters say offshore oil and gas in the Adriatic could help Europe reduce its reliance on Russian energy imports. Opponents warn that exploration will damage tourism and could have grave environmental consequences. Under mounting pressure, the prime minister of neighbouring Croatia, Zoran Milanović, has proposed a referendum on exploration. Paul Bradbury, who runs tourism websites from Hvar, said “Oil and gas is tourism suicide. Croatians are sleep-walking into this irreversible path without a proper public-awareness campaign. Hvar is the sunniest island in Europe, but it is also reliant on its pristine seas.” Croatia, the EU’s newest member, launched its first tender for offshore oil and gas blocks last year. This was beginning of a process that it hopes will bring in $2.5bn (£1.7bn) of investment over five years to an economy that has barely grown since 2008.The tender applied to an area of 14,000 sq miles (36,823 sq km) from the Istrian peninsula – billed as “the new Tuscany” – to near the mouth of Montenegro’s Bay of Kotor, a mountain-fringed gulf dotted with attractive limestone villages. The first licences are due to be awarded next month, with the remaining blocks going to a second tender in September. Montenegro has held a similar tender for offshore oil and gas exploration blocks covering 1,200 sq miles, and announced in February that it had started initial negotiations with bidders. To the south, Albania has been undertaking seismic studies of offshore resources, and companies including Shell are already active onshore. Critics say that the benefits of oil and gas development are outweighed by the potential risks to the environment and the tourism sector. Exploration would be allowed up to about six miles (10km) from the mainland and four miles from the islands. “This is contradictory to 20 years of work on the tourism industry and could kill Croatia’s whole brand,” said Tanja Gutenmorgen, a member of the Clean Adriatic Sea Alliance (CASA), an anti-drilling activist group, and the owner of a high-end tourism business. “People come because of pristine untouched nature. Nobody wants to bathe in a sea where they see oil rigs, platforms, tankers and pipelines, or see the onshore infrastructure. We all have villas and apartments that we offer to tourists for the view of the sea. This is like putting an elephant in a tiny shop full of filigree. We will fight it until our last breath.” Vjeran Piršić, a local councillor on the island of Krk and head of an environmental organisation, told the Guardian that he feared an oil spill worse than the Deepwater Horizon disaster in the Gulf of Mexico in 2010. He and CASA claim that currents in the Adriatic mean a spill off the eastern shore would be pushed northwards towards Venice, permanently damaging the pebbly beaches along the coastline. Piršić said: “This is a question of human life, and also the economy, which is dependent on tourism and fishing. Local communities are now mobilising.” CASA, which advocates replacing fossil fuels with renewable energy, says oil extraction could earn Croatia as little as $400m, a figure dwarfed by annual tourism revenues, which reached $9.5bn last year from 11 million holidaymakers, according to the UN World Tourism Organisation. This claim is strongly rebutted by the Croatian Hydrocarbons Agency, which says its conservative estimate of oil and gas revenues is $1bn a year. Croatia’s tourism industry was devastated by the country’s 1991-95 war, but has been painstakingly rebuilt over the past two decades. Visitor numbers only returned to pre-war levels in 2012. Montenegro has one of the world’s fastest-growing tourism sectors, according to the World Tourism and Travel Council, and is increasingly popular with Europe’s glitterati and Russians buying second homes. The billionaire financier Nat Rothschild held his 40th birthday in Porto Montenegro, a glitzy resort on the Bay of Kotor in which he is an investor, with guests including Peter Mandelson and Roman Abramovich. Barbara Dorić, the head of the Croatian Hydrocarbons Agency, which is running the exploration tenders, told the Guardian that tourism in Croatia had co-existed with the oil and gas sectors in Croatia for 40 years, and Italy had more than 140 gas platforms and oil rigs in its Adriatic waters. She added that environmental protection standards had to meet stringent EU directives. Dorić said: “We insisted on the strictest criteria for the preservation of the environment. Tourism is the most important industry in our country, which cannot and will not be endangered with this project.” Sources close to the process insisted that few oil rigs would be visible from the coast, and gas fields were attracting more attention. Some in the tourism sector are less pessimistic than CASA about hydrocarbons development. Tihomir Nikolas, head of a major tourist association, said he was not opposed to new explorations but wanted more thorough consultation, monitoring and management. “Certainly, we are concerned about any potential risk of contamination in the Adriatic,” said Boris Šuljić, owner of a boutique hotel on Pag. “But all indications are that there will in fact be gas exploration in the Adriatic, which is less risky then oil exploration. We believe that the highest standards of environmental protection will be applied. “The Adriatic is one of the cleanest and most beautiful seas in the world and I am sure that our government and citizens will make the best decisions in order for it to remain that way.” Despite this, Milanović – who faces a re-election battle this year – appeared to back down last week in the face of mounting opposition to exploration, calling for a referendum “to see if we want to exploit minerals and raw materials”. Luka Orešković, co-chair of the Emerging Europe business and government group at Harvard University, and a Zagreb political insider, said: “Milanović sees quick benefits of a populist measure particularly for parts of the electorate that rely on tourism for their livelihood. “The opposition to the oil and gas process is extremely insubstantial in terms of actual arguments, but two years after the tenders were announced, it’s become a key issue. If it goes to a referendum, it’s a question of how it is phrased, but it could be the end, as popular sentiment has turned very much against.” Meanwhile, Booth’s role is coming under scrutiny. In a statement issued to the Guardian on Friday, CASA said it could not “comment on what relevance the former prime minister’s wife role as an advocate and lobbyist might mean to the Adriatic”. But it added: “We suspect, based upon her previous actions, it won’t be in the common interest of the population, the natural heritage, fisheries or tourism industries.” Asked by the Guardian if Booth was aware of the growing controversy over Adriatic oil exploration, Omnia Strategy said in a statement: “Mrs Blair will stress the importance of implementing international best practices to efficiently address key social and environment challenges.”

 

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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.

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Belgrade Media Report 30 April 2024

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