While the European Union (EU) expands the range of sanctions against Russia and isolates its economy, thus punishing it for its invasion of Ukraine, in the Bosnia and Herzegovina (BiH) entity Republika Srpska (RS), cooperation with the Rusian businessmen is deepening.
In this regard, businessmen from Russia will discuss direct investments in this BiH entity during a three-day investment conference that began on Monday, September 5th in Prijedor, in the northwest of BiH.
This was confirmed by the RS Investment-Development Bank (IRBRS), which is the organizer of the “INVEST SRPSKA 2022” Conference.
The IRBRS did not say which Russian companies will participate in the talks, how many possible investments are involved, and whether any of those Russian companies are under international sanctions.
What sanctions did BiH impose on Russia?
The IRBRS did not directly say whether they see obstacles to cooperation with Russia due to international sanctions, especially due to the fact that BiH supported 34 out of 36 declarations of the European Council when introducing various EU restrictive measures towards Russia.
Among the restrictive measures there is a ban on the import and export of coal, steel, and other metals to Russia, as well as jet fuel. The sanctions also include several Russian banks and individuals close to Russian President Vladimir Putin.
Sanctions, despite this, are not implemented, because the decision was not made by the Council of Ministers of BiH, due to the opposition of the ministers from RS.
How does RS explain cooperation with Russia?
RS justifies economic cooperation with Russia with the policy of “neutrality”. However, the EU believes that it is not time for neutrality and that BiH should implement the sanctions it supported.
The EU Delegation in BiH states that they expect BiH to harmonize its foreign, security, and trade policy with the policy of the EU.
”The results of this process will be evaluated through the process of joining the EU. Now is not the time for neutrality,” is stated in a written statement by Ferdinand Koenig, spokesman for the EU Delegation and the Office of the EU Special Representative in BiH.
The Embassy of the United States (U.S.), commenting on the talks about Russian investments, points out that “the figures show that BiH is part of the Euro-Atlantic community of countries.”
”The citizens of this country have clearly shown that its political and economic future lies in the West. That future is also reflected in trade statistics: the value of BiH’s exports to EU countries was 10.3 billion BAM, while the value of exports to Russia was only 107 million BAM in 2021,” the Embassy stated.
How big are Russian investments in BiH?
As of December 2021, total direct investments from the Russian Federation in BiH amounted to 457.9 million BAM (234 million euros), according to data from the Foreign Investment Promotion Agency (FIPA) of BiH.
”In the RS, total investments from Russia amount to 453.4 million BAM (close to 232 million euros), as of December 2021, and Russia is the fifth on the list of the most important investors in the RS,” FIPA states.
On the other hand, in the second entity, the Federation of BiH (FBiH), total Russian investments amount to 4.4 million BAM (about 2.2 million euros), RSE writes.
E.Dz.
