Bosnia and Herzegovina is threatened by the activation of investment arbitration in Washington worth 695 million euros, because the Government of the Republic of Srpska has not yet reached an agreement with Elektrogospodarstva Slovenije on debt settlement. The deadline for reaching an agreement expires on February 6, and both sides have confirmed that a final agreement has not yet been reached, although negotiations are continuing.
Currently, the payment of 67 million euros with associated interest is being negotiated, in accordance with the earlier commercial arbitration decision made in Belgrade. The Minister of Mining and Energy of the Republika Srpska, Petar Đokić, said that he expects the Slovenian side to understand the financial difficulties faced by the Republika Srpska, stressing that Slovenians strive to protect their rights, but that fulfilling financial obligations will not be easy.
The holding company Slovenske elektrana, in which Elektrogospodarstvo Slovenije operates, refused to comment publicly on the course and dynamics of the negotiations, saying that they did not want to provide details about the ongoing talks.
The Attorney General’s Office of Bosnia and Herzegovina announced earlier that it is monitoring the negotiations between Elektrogospodarstva Slovenije and Rudnik and the Ugljevik Thermal Power Plant, and that, if necessary, it will take measures within its competence so that the investment arbitration is concluded in the interest of the state. In case of fulfillment of obligations from commercial arbitration, the dispute in Washington could become moot.
Experts warn that different scenarios are possible in such disputes, including a possible extension of the deadline for reaching an agreement. However, if one side estimates that it has no interest in an extension, the deadline of February 6 could remain final, which could lead to the continuation of the procedure and a potential financial burden on public budgets, primarily the budget of Republika Srpska.
It is recalled that the dispute between the Slovenian state company and the energy sector in Bosnia and Herzegovina has been going on since 2011. The Slovenian side claims a share of the produced electricity, referring to investments in the construction of the Ugljevik mine and thermal power plant back in the days of the former Socialist Federal Republic of Yugoslavia, which is the basis of the multi-year dispute between the two sides.
