LOCAL PRESS

 

ICJ dismisses Croatia’s claim and Serbia’s counter-claim (B92/Beta/Tanjug)

The International Court of Justice (ICJ) in The Hague dismissed on Tuesday Croatia’s claim against Serbia in its entirety, noting that Croatia failed to prove that genocide was committed in Croatia during the 1991-1995 war. Croatia did not prove that there was the specific intent required for acts of genocide. Croatia’s claim is dismissed in its entirety, says the reasoning behind the judgment read by ICJ President Petr Tomka. Tomka said that Croatia failed to prove that the only conclusion that could be drawn from the conduct of the Yugoslav People’s Army (JNA) and Serbian forces in the territory of Croatia was that there was intent to destroy Croats as a group. Tomka said that the acts were not committed with “the specific intent required for acts of genocide”, noting that the ICTY Prosecution had not accused anyone of genocide in the territory of Croatia from 1991 to 1995. Tomka said that Serbia cannot be responsible for crimes perpetrated before 27 April 1992, because the Federal Republic of Yugoslavia only at this time became the UN member and signatory of the UN Convention on the Prevention and Punishment of the Crime of Genocide. The state that just signed the Genocide Convention cannot be considered responsible for genocide retroactively in keeping with Article 9 of the Genocide Convention, Tomka said. This excluded the part of the Croatian lawsuit referring to war crimes committed in Vukovar in 1991. Tomka noted that the countersuit filed by Serbia which covers the Croatian military Operation Storm is legally founded as Croatia signed the Convention on Genocide in summer 1995. The Court believes that the countersuit is directly connected to the main request, factually and legally, and the Genocide Convention represents the legal foundation for the suit and countersuit, Tomka said. He noted that Croatia has the obligation to support the claim by firm evidence on genocide, while Serbia has to do the same with the counter-claim.

The ruling today marks the end of a court process that has lasted for 16 years. Croatia in 1999 filed its lawsuit against Serbia, while Serbia responded ten years later, charging Croatia of committing genocide against ethnic Serbs there during and after Operation Storm in 1995. The ICJ ruling is final and cannot be appealed, and the countries will have an obligation to adhere to it.

 

Nikolic: Confirmation that Croatia committed mass crime against Serbs (RTS)

Serbian President Tomislav Nikolic addressed the public following the ICJ judgment, by saying that Croatia didn’t manage to prove the genocidal intentions of the Serbian side in the war conflicts, and on the other side, even though Serbia’s counter-claim was not accepted, it was confirmed that Croatia perpetrated mass crime against the Serbs. Nikolic said that the Croatian Army killed all inhabitants in the Medacki Dzep, and the inhabitants were exclusively Serbs. “According to international law, but also according to the ICJ practice, as far as I know, this is irrefutable proof of the execution of genocide,” said Nikolic. According to him, the ICJ judgment is of great importance for Serbia and the Serbian people, because it reversed the established stereotypes of the international community on the events in the region of the former Socialist Federal Republic of Yugoslavia from 1991 until 1995. “On the other hand, even though Serbia’s counter-claim was not accepted, the ICJ established that the authorities of the Republic of Croatia were aware that the military operation Storm will lead to the expulsion of the civil population. This way, even the UN highest legal institution has confirmed that the Croatian forces committed mass crimes against the Serbs in Croatia,” said Nikolic. Thus, as the Serbian President assessed, despite the injustice, an encouraging step has been made. “I sincerely hope that in the time ahead of us there will be enough courage for Serbia and Croatia to jointly resolve, in good faith, everything that hinders our region to enter a period of lasting peace and prosperity,” concluded Nikolic.

 

Vucic and Dodik on international plans for B&H (RTS)

Serbian Prime Minister Aleksandar Vucic and the Republika Srpska (RS) President Milorad Dodik discussed the current affairs, including plans of the international community for the RS and B&H. The two officials met as part of regular consultations, and on the occasion Dodik updated Vucic about the political and economic situation in RS, reads the statement issued by the Serbian government’s press office. Vucic underlined the importance of respect for the territorial integrity of B&H and the integrity of the RS entity. Vucic informed Dodik about the forthcoming talks on Kosovo and Metohija, which will be held in Brussels on 9 February. Vucic also notified Dodik about the first results of the economic measures that the Serbian government has taken to rehabilitate the Serbian economy, the statement reads.

 

Death certificate for Jablanovic (B92/Novosti)

The Albanians are continuing the campaign against the Serb Minister in the Kosovo government Aleksandar Jablanovic on social networks. Photographs showing a false death certificate written in Albanian, have appeared on the internet. The false notice reads as follows: “Respected friends, we are informing you that the DOG died on 1 February. He died accidentally in the street. The farewell janazah (Muslim funeral prayer) will be held in the Orthodox Church. The funeral will be held on 3 February 2015.” The message is signed by “Isa Mustafovic and Hashim Thacovic” as the mourners. Several pages have been set up on Facebook garnering several hundred likes calling for Jablanovic’s resignation, with crossed out images showing Jablanovic, Kosovo Prime Minister Isa Mustafa, and his deputy Hashim Thaqi. “With these incomprehensible gestures, Serbophobia and stirring up of ethnic hatred continues and this is obviously getting out of control. We need to seriously think how to position ourselves further on,” Deputy Kosovo Prime Minister Branimir Stojanovic told Novosti.

 

Serbian Army members on a peace mission course (Tanjug)

The Serbian Army General Staff Centre for Peace Operations is organizing a course for staff officers and non-commissioned officers in multinational operations. The course is being attended by 19 Serbian Army members. It is being realized in cooperation with the Peace Support Operations Centre from Butmir, B&H. The two-week course, organized for the sixth time, has been opened by the Deputy Head of the Centre for Peace Operations, Colonel Nikola Dejanovic.

 

REGIONAL PRESS

 

Video of accused FYROM leader's meeting with PM (Tanjug, Skopje correspondent)

Video footage has been aired showing opposition leader Zoran Zaev admit to PM Nikola Gruevski that he had received materials from foreign intelligence services. In the video broadcast by FYROM’s TV Sitel, Zaev is heard saying he met several times with "foreigners" and that he was "sure of what he got." The FYROM police on Saturday filed criminal charges against four persons, the leader of the opposition Social Democratic Union of Macedonia among them. They are suspected of endangering the constitutional order of the state. In the recorded conversation, Zaev also tells Gruevski that "the material" he received came from a foreign service, "which is not from the neighborhood." After the meeting, a police investigation that lasted five months was launched at the prime minister's office, on Gruevski's complaint. The prime minister reported to the police that the leader of the opposition on four occasions personally blackmailed him with recorded materials received from foreign services, asking him to resign from office and announce early elections and a technical government. Zaev threatened to publish the documents unless Gruevski complied, according to the complaint. Zaev claims that the allegations that he was attempting to carry out a coup represent "the last attempt of the government to prevent the disclosure of evidence of criminal activities." In a statement for Tanjug late on Monday, he "did not rule out a black scenario in Macedonia" once his party "starts publishing the evidence." Zaev confirmed that he received documents accusing Gruevski and several of his associates of corruption and that they came "from the Macedonian secret service" - from people who could "no longer look on as the state was being ruined." Accusing the whole opposition is only possible in dictatorial regimes, he said, adding that Gruevski's "announcement of a court process while there is still no indictment shows that the Macedonian judiciary is under government control." Zaev confirmed that he already met with EU representatives, and received a message from Berlin that the latest developments in FYROM were "destroying the democratic opposition." He said he "counted on our friends from the EU" and expected their reactions to be timely, "and in line with what they think is fair." But the leader of the FYROM opposition said he "could not comment" on Russia's reaction to the controversy. Moscow "urged dialogue and warned about the danger of escalating ethnic tensions in Macedonia." "I cannot comment on that because the Russian Ministry of Foreign Affairs reacted for the first time. I don't know why that is happening for the first time at this moment. We did not ask for such a thing and therefore I cannot comment on it," Zaev told Tanjug. He concluded by saying that he expects early elections that would give legitimacy to a new government and normalize the situation in the country.

 

Croatian leaders should condemn Glavas’s statements and release (Srna)

Miodrag Linta, head of the Coalition of Refugee Associations, is urging Croatia to publicly condemn the country’s Constitutional Court decision to abolish the final and binding judgment issued to war criminal Branimir Glavas and the Zagreb County Court’s decision to release him, and to denounce Glavas’s support for “Greater Croatia”. Linta sent his appeal to Croatian President Kolinda Grabar Kitarovic, Prime Minister Zoran Milanovic, and Foreign Minister Vesna Pusic, also asking them to publicly condemn the banner posted at the entrance to Osijek on Sunday, which read “Branimir Glavas Hero”. He also urged them to publicly condemn the welcoming concert in honor of the convicted war criminal Branimir Glavas, held in an Osijek square in the presence of several thousand of his fans, and also condemn Glavas’s hate speech and his support to “Greater Croatia” within its historical borders. In the letter, Linta points out that a series of facts shows that Croatia is a country that not only protects, but also glorifies war criminals and considers them heroes. “That’s why we appeal to the European Commission to publicly warn Croatia that is must respect the stipulations laid out in the Accession Agreement signed in November 2011, which refer to building an independent and unbiased judiciary, punishing of war criminals and improving the position of ethnic minorities, above all, the Serb ethnic minority,” added Linta. Linta believes that if Croatia continues to obstruct the implementation of these obligations, the European Commission should impose sanctions against it. “If not, Croatia will become an example for extremist movements throughout Europe proving that it is possible not only to banish an ethnic community by committing war crimes and not be punished for it, but also celebrate war criminals as national heroes,” stated Linta.

 

Company from UAE investing 2.3 billion Euros in B&H (Oslobodjenje)

In the municipality of Trnovo, near Sarajevo, the largest tourist town in southeast Europe will be built, which will include thousands of housing units, hotels, the largest shopping center in B&H, and other necessary infrastructure, which will create the opportunity for employment for a great number of people. The project is valued at around 2.3 billion Euros, and Buroj Property Development from the United Arab Emirates will finance it. Ismail Ahmet, director of the firm, today in Sarajevo signed a protocol on cooperation with Ibro Berilo, mayor of Trnovo.

Ahmet took the opportunity to say that signing the document is just the first step toward building a strong partnership between the B&H government and Buroj Property Development.

The company, as he said, is one of the leaders in urban development and is dedicated to becoming a strong partner for B&H in developing the great tourist potential that the country has.

"We came here to work with the B&H authorities as a partner with the goal of ensuring that profits and benefits from our joint project are shared between Buroj Property Development and B&H citizens,” said Ahmet, adding that the firm he represents intends to assist B&H in becoming one of the leaders in tourism in the countries of the neighborhood and beyond. Such a project, he believes, will not contribute just to direct revenue from tourists, but will directly and indirectly create the opportunity to employ thousands of people. Ibro Berilo, mayor of Trnovo, said that signing the protocol is a historic day for Trnovo and that the municipality with this is confirming its preparedness for partnership in the realization of projects. He said that the help from higher levels of government will be necessary, because the project exceeds the capabilities and capacities of Trnovo. The project is titled Buroj Ozon.

 

INTERNATIONAL PRESS

 

UN Court Absolves Serbia And Croatia Of Genocide For Lack Of Proof In 1990s War (IBT, by Aditya Tejas, 3 February 2015)

The United Nations International Court of Justice (ICJ) ruled on Tuesday that neither Serbia nor Croatia had committed acts of genocide in the events following the collapse of the Socialist Federal Republic of Yugoslavia. The court, which deliberated Tuesday on accusations of genocide by Serbia and Croatia against each other, ruled that neither party had been able to prove that the other had committed an act of genocide. The crimes in question were allegedly committed during the Croatian independence war, which followed the breakup of the former Yugoslavian republic, and left about 20,000 people dead between 1991 and 1995. "In the absence of proof of the necessary intent, the Court finds that Croatia has failed to substantiate its allegation that genocide or other breaches of the Convention were committed," the court said in a statement, adding, "the Court considers that the existence of an intent to destroy, in whole or in part, the national or ethnical group of the Serbs in Croatia has not been proved in this case."

The ICJ ruled that Serbia intended to create a Serbian state by driving the Croatian population away from a region instead of destroying it, while noting that the acts of Croatian troops were not on a scale sufficient to establish an intention of genocide. The Croatian government had accused Serbia of committing genocide in the town of Vukovar in 1991. The Vukovar incident, and a subsequent 87-day siege by the Yugoslavian army, is said to have left over 2,000 dead and displaced tens of thousands of people. The court also ruled that Serbia cannot be found guilty of acts committed before April 27, 1992, when the country signed the genocide convention, according to a livestream of the court's deliberations. Serbia had filed a counterclaim against the forced expulsion of 200,000 Serbs from Croatia, in an incident where the Croatian military bombarded a majority Serb area, in an exercise called Operation Storm. The proportion of ethnic Serbs in the area had reportedly dwindled to 4 percent from 12 percent before the attack. The initial filing to the ICJ was made in 1999, accusing Slobodan Milosevic, president of the erstwhile Yugoslavian republic, of waging a systematic campaign of violence against ethnic Croats. Milosevic was tried for genocide at the International Criminal Tribunal and Yugoslavia was broken up into a collection of states including Serbia, Croatia, and Bosnia and Herzegovina. Serbia’s counterclaim was filed in 2010. Croatia had demanded financial compensation, the punishment of war criminals, information about all missing persons and the return of stolen cultural heritage, according to reports. Since it began in 1946, the court has only ever recognized one incident of genocide previously -- when it ruled in 2007 on the massacre at Srebrenica, where over 8,000 ethnic Bosnians were killed by Serbian troops led by infamous war criminal Ratko Mladić. The court also issued a reminder that it can only prosecute the acts of states, and cannot determine individual criminal responsibility. Relations between Serbia and Croatia have since normalized, with Croatia joining the European Union and helping Serbia with its own membership process. However, Serbia was outraged when the commander of Operation Storm was cleared on appeal by the ICT in 2012, the BBC reported. Serbian Foreign Minister Ivica Dacic had said that the ruling was impossible to predict, but expressed faith in the court’s decision, Serbian media outlet InSerbia reported. “I expect that the International Court of Justice will indeed be a court of justice,” he had said at a press conference Monday.

 

Macedonia opposition chief accused of staging coup d’etat (EurActiv, 2 February 2015)

Macedonia's chief opposition leader was charged by police on Saturday (31 January) with conspiring with a foreign intelligence service to topple the government. Zoran Zaev, leader of the Social Democrats, denied the charges, saying authorities were trying in vain to prevent the publication of what he says is incendiary evidence of criminal wrongdoing by the conservative government of Prime Minister Nikola Gruevski. Gruevski, in power since mid-2006, accused Zaev of trying to blackmail him to call a snap election during face-to-face talks in September and November, saying Zaev claimed he had gathered intelligence against the government with the help of a foreign spy service. "I watched and listened to the head of the opposition ... informing me that he is collaborating with a foreign intelligence service," Gruevski said. Macedonia's state prosecutor confirmed that police had submitted criminal charges against four people, including a former head of state intelligence and his wife. All except Zaev were in custody. Local media reported that Zaev had turned in his passport.

‘Undemocratic seizure of power’

Zaev's Social Democrats have been boycotting parliament for almost a year since alleging fraud in the last parliamentary election. Zaev's potential imprisonment would further deepen political divisions and may heighten concern in the West over a perceived authoritarian streak in Gruevski's rule. Macedonia, a landlocked Balkan country of 2 million people, wants to join NATO and the European Union, but progress has been stalled by a dispute with neighboring Greece over Macedonia's name (see background). The country narrowly avoided civil war in 2001 in clashes between government forces and ethnic Albanian guerrillas. Ethnic Albanians make up at least 25 percent of the population, and a party of former guerrillas shares power with Gruevski. For months, Zaev has been threatening to publish what he says is evidence of criminal wrongdoing by the government, including accusations he said could harm ethnic relations in Macedonia. "Even if they arrest Zaev, they will not succeed in stopping the publication of the evidence we have," Zaev was quoted as telling the Internet portal of Macedonian weekly Fokus.

Interior Ministry spokesman Ivo Kotevski said the plot amounted to an attempted putsch.

"For the first time since independence, the Ministry of the Interior has realized a case in which we have stopped an attempt to threaten the constitutional order - the undemocratic seizure of power."

Positions:

The Russian Foreign Ministry issued a statement Sunday calling for a detailed investigation into the alleged coup attempt in Macedonia. "We hope that a thorough investigation of the incident is conducted in order to ensure stability and security in Macedonia," a statement published on the Ministry's website on Sunday noted. "We call on all political forces in the country to act within the constitutional framework of democratic institutions in order to resolve problems through dialogue," the Ministry added. "The aggravation of the situation in friendly Macedonia may result in the danger of exacerbating existing ethnic tensions."

 

EU Urges Inquiry into Macedonia Opposition Coup Allegations (AP, 2 February 2015)

BRUSSELS (AP) -- The European Union is insisting on an independent investigation after Macedonia's opposition leader was accused of plotting a coup and prevented from leaving the country. EU spokeswoman Maja Kocijancic said Monday that the 28-nation bloc demands "an independent and transparent investigation in case of any wrongdoing." Macedonia, once part of Yugoslavia, is not in the EU but has been a candidate for EU membership since 2005.

Zoran Zaev of Macedonia's opposition Social Democratic Union party was charged Saturday with "violence against representatives of the highest state authorities." Local media reported he was not arrested but ordered to surrender his passport. Kocijancic said the EU is concerned about "the way in which events over the weekend were handled and the lack of balanced media coverage" of those events.

 

Greece Could Disrupt the EU’s Balkan Policy (BIRN, by Marcus Tanner, 30 January 2015)

The arrival of a more pro-Russian government in Athens could add to Brussels’ existing headaches in the Balkans.

While Europe remains transfixed by possible fallout of a pistols-at-dawn showdown between the EU and the new Greek government over its attitude to debt repayment, concerns about a pro-Russian tilt in Greek foreign policy have been shifted somewhat to the side. Concerns about “Russia’s new friend”, as the new Syriza-led government has been dubbed, may have been overplayed. Significantly, after complaining that it had not been consulted about plans to extend existing EU sanctions on Russia over Ukraine, when push came to shove, the new government did not try to block the extension of the sanctions regime at Thursday’s EU meeting. Nevertheless, the arrival in Athens of a government that views Russian policy with some sympathy – or at least with more sympathy than its predecessor - could undermine the EU’s chances of running a consistent ostpolitik. It could also affect the EU’s sudostpolitik as well – its policy towards the Balkans, where two states in particular - Serbia and Bulgaria - always feel unnerved by East-West tension. In those two countries, governments always have to wrestle with the fact that head and heart pull in opposing directions. Cold rational calculation may dictate alliances with the west but many people’s natural sympathies lie with the big Orthodox Slavic brother state in the east. At his recent lecture on the crisis facing Balkan democracy at the London School of Economics, Florian Bieber, professor of Southeast Europe studies at Graz, noted the potential for problems if maverick pro-Russian authorities like the government of the mainly Serbian entity in Bosnia suddenly find themselves in company. A constellation of Kremlin allies could start emerging in the region, he said, with a nod also to Hungary’s evident restiveness about conflicts with the Kremlin. Bieber recalled the visit by Syriza leader Alexis Tsipras to Serbia last year. One of his hosts - and biggest fans - was Alexander Vulin, the current Labour Minister and former hardline head of the Serbian government’s Kosovo office. The Economist’s Balkan correspondent, Tim Judah, says it is early to speculate on what Syriza will do in government in terms of foreign policy on the basis of flamboyant statements made in opposition. Also, Greece is a relatively small player and in a weak position right now. “But, if you have a Russia-loyal state in the EU, it could play a spoiler role in the EU,” he said. The EU has already had trouble in getting countries in the region to align their foreign policies to those of the EU over Ukraine. Now, he continued, political forces that might once have shrunk from bucking the common EU line “can hide behind Greece if there is something that a majority of EU countries want to do - that’s the problem. “In theory, all EU candidate countries should align themselves with the EU, Judah added. “Montenegro did so but Serbia did not. Now it may say, why put pressure on us [for sanctions over Ukraine, for example] when the Greeks are also against?” Ukraine is not the only issue on which the EU feels all its Balkan partners should be singing from the same hymn sheet. Others are migration, energy and Kosovo. On Kosovo, Brussels has not insisted on EU candidate Serbia recognizing Kosovo’s independence, but it has insisted on Serbia joining a dialogue in Brussels with the authorities of its former province. As Greece does not recognize Kosovo anyway, one might conclude that whatever position the new government took here won’t change much. But Judah warns that this is an over-simplification. This is because the EU relies on non-recognising governments like Greece’s not making too much fuss when, for example, Brussels gingerly dangles before Kosovo the eventual prospect of membership. In its October 2014 report, the Commission significantly described the conclusion of a Stability and Association Agreement with Kosovo as “a milestone” in their mutual relations. Likewise, on migration, the EU relies on external border countries like Greece taking much of the heavy loading in preventing a mass influx of unwanted incomers. Its eastern border with Turkey is a major gateway for illegal immigration from the Middle East. In recent years the Greek government has stepped up measures to stop the flow. The new government may well feel less bound to play the role of EU border cop. If it wanted to play hardball, it could turn a blind eye to much larger numbers of such people getting in and then allow them pass through to neighbouring states like Serbia on their way to the west via Hungary. As Greece and Brussels go eyeball to eyeball, in other words, it is clear that Greece holds more cards in its hand than might be imagined.

 

Serbia: caught in the EU-Russia crossfire (Hurriyet Daily News, by Hamdi Firat Buyuk, 2 February 2015)

Serbian Prime Minister Aleksandar Vucic paid an official visit to Austria last week to discuss the two countries’ assumption of joint chairmanship of the OSCE in 2017. However, during the press conference following the meetings, Vucic returned to a familiar topic by underlining that although EU integration tops Serbia’s foreign policy agenda, the country also desires to foster friendly relations with Russia. After recent changes in the fundamental underpinnings of the international arena, Vucic has been called on to clarify his country’s position; and he has done so several times and on various platforms. For instance, Vucic told Pink TV in his Christmas interview that Serbia’s main strategic goal is to become a member of the European Union. During the program, he delivered a remarkable speech on Serbia’s position between the EU and Russia, a topic which has been increasingly discussed since the outbreak of the Ukrainian crisis. In recent months, the Vucic has repeatedly expressed the direction of his government’s foreign policy to the public. Vucic also addressed the country’s position vis-à-vis the Ukrainian crisis. Between its strategic ally Russia and the EU, “Serbia has succeeded to keep its position and remain neutral,” he said, adding that Serbia did not promise the West that it would assume a position against Russia, and vice versa; it did not promise Russia it would act against the West. Since the onset of the Ukrainian crisis, Russian-EU relations have not shown any sign of warming, a reality that has been further exacerbated by Russia’s annexation of Crimea. Economic sanctions implemented against Russia by the EU and the U.S., political instability in the region and fluctuations in the energy market have indeed made 2014 a long year for Russia according to USAK expert on Russia Kerim Has. Also, it appears that Russia’s economy will continue to face hardship in 2015, a prediction that formed the basis of Russia’s decision to release a new economic reform package amid the recent crisis. It is in this context that countries such as Serbia with traditional, cultural and historical ties to Russia on the one hand and aspirations to join the EU on the other find themselves navigating increasingly difficult waters. Serbia commenced accession talks with the EU last year in January directly following the EU’s talks with Kosovo in Brussels. In spite of the fact that Serbia’s inclusion in the EU is a topic of debate in both Serbian domestic politics and within the international community at large, and regardless of the crises that Serbia’s coalition may be facing, Vucic has made clear that his country’s most important strategic objective is increased integration with the EU. As a candidate country, Serbia has come to face increasing pressure for it to act in unison with the EU in enacting sanctions against Russia. In return, Russia has become a more visible actor in the Western Balkans, which it sees as a new playground, says Judy Dempsey from Carnegie Europe in her latest opinion piece. Russia is trying to dissuade Serbia from siding with the West with its economic investments, political support in regional disputes and public diplomacy; the latter of which has become a very important and effective instrument on Serbia’s populace. However, Serbia remains deeply disappointed at Russia’s cancelation of the South Stream Pipeline that was expected to fertilize Serbia’s fledgling energy market. As the EU’s pressure on Serbia regarding its position toward Russia increases day by day, Russia’s visibility on the ground is becoming more apparent. In this sense, the two historical allies’ relations have seen a peak with Russian President Vladimir Putin’s visit to Belgrade last October, in which he was the guest of honor for the 70th anniversary of the liberation of the Serbian capital from Nazi occupation. It is well known that Russia has a strong desire to invest in Serbia. While such involvement is met with skepticism on the part of the EU, Russia has nonetheless made several strategic investments in Serbia’s railways, defense systems, telecom industry and infrastructure. The tense dynamic has been illustrated in a number of cases. For one, Russia’s state-led Russian Railways, whose president, Vladimir Yakunin, is on the EU’s list of individuals banned from entering any EU country, is now upgrading a 220-mile stretch of railroad in Serbia. Additionally, Russia’s state-owned energy company Gazprom supplies the majority of Serbia’s natural gas. One more, but certainly not the last, example is seen in the fact that Lukoil, another Russian energy company, holds nearly 80 percent of Beopetrol, which is one of Serbia’s largest gas station chains. Putin recently declared that Serbian exports to Russia could reach $500 million per year if the two sides enforce their agreements, further stating that such an arrangement “would be very beneficial for Serbia and would bring new jobs, but would also be beneficial for Russia.” In the end, Serbia is finding it increasingly difficult to balance its relations with Russia and the EU, and unless a form of détente is experienced by the conflicting parties, this trend is likely only to accelerate.

 

Montenegro: Government plan to boost competition, efficiency (New Europe, 3 February 2015)

At a session on January 26, chaired by Prime Minister Milo Dukanovic, Montenegro’s Council for Privatisation and Capital Projects approved the 2015 Draft Privatisation Plan and forwarded it to the government for consideration and adoption, the government said in a press release.

The 2015 draft privatisation plan, based on suggestions from relevant departments and the Council’s tender committee, sets out objectives and methods of privatisation, companies and capital for privatisation, terms and conditions for their implementation, as well as developing tourist sites and social aspects of the privatisation processes. According to the proposed projections, the main objectives is to boost competition and efficiency of companies, encourage foreign investment and entrepreneurship, stimulate economic growth, create new jobs and improve the living standards of the citizens. Structural reforms and measures to improve the business environment, which imply the removal of barriers to new investment, will be undertaken in order to achieve these objectives, the Council concluded. The privatisation plan will be implemented on the basis of the tender sale of share capital and the application of the model of public-private partnership in a number of companies. The Council decided that the implementation of already published public calls will be continued in the following companies: Institute Dr Simo Milosevic - Igalo, New Tobacco Plant Podgorica, Poliex – Berane, Montenegro Defence Industry – Podgorica and Hotel Park – Bijela. Preparations for publishing public tenders for privatisation of Montecargo, Montenegro Airlines, HTP Budva Rivijera, HTP Ulcinj Riviera, Institute of Ferrous Metallurgy” and Electrode Factory - Pluzine are underway, the meeting concluded. The projects to be implemented on the basis of public-private partnerships are: Island Lastvica with the Mamula fortress (the project is being negotiated), VTK Mediterranean - Zabljak, location between Njivice and the estuary of Sutorina River, military-tourist complex Bigovo, tourist complex Ecolodge – Vranjina, Long Beach -Ulcinj, Ada Bojana - Ulcinj, former barracks Radoje Dakic in Zabljak, NTC Marina – Kotor, military-tourist resort Valdanos, military- tourist complex Ostrvo cvijeca and Prevlaka land, site Donja Arza - Herceg Novi, Montenegro Post, Ski resort Savin kuk, as well as sites Kabala for – Herceg Novi and Buljarica, property of Gornji Ibar –Rozaje, project of golf courses construction in the municipality of Tivat. The Council adopted on January 26 the report on the results of the public call for privatisation of Montenegro Defence Industry – Podgorica. The consortium consisting of DOO-CPR Impex and ATL- Atlantic Technologies Ltd submitted a bid offering the purchase price of €680,000, implementation of an investment plan in the amount of €400,000 by December 31, 2015, and the obligation of the bidder to carry out the employment programme specified by the collective agreement and the company’s internal documents related to labour relations. The Council decided to forward the share purchase proposed agreement to the Government for approval. The Council’s session also addressed the status of the Adriatic Shipyard after four unsuccessful public calls. The Council concluded that the insistence on the concept of selling shares of the company would be a waste of time and result in more financial problems in the company’s operation. Therefore, the Council adopted a proposal, allowing, through programmed bankruptcy, sale of the assets of the company and the conversion of the company in the capacities for overhaul yachts and mega yachts, in which a number of respected investors have shown interest. The concept would, in addition to economic feasibility, have significant ecological dimension, based on the elimination of polluting technologies that have endangered natural and cultural heritage of the bay for decades. In order to implement the project, the Council decided to propose to the government to adopt Annex II of the concession agreement, which would create conditions for the realisation of the investment.

The meeting on January 26 also adopted the report on the results of the public tender for long-term lease of Lastavica island with Mamula fortress, and the draft contract for a 49-year lease period.