Year of Stings and Commercial War

Within a month, Serbian merchandise has entered Kosovo from 35m to 40m euros. However, after the safeguard clause, import has dropped by 99 per cent. In the past month, products worth 300 thousand euros have been introduced.

In addition to Serbian products, the move was set for Bosnian ones as well.

The first requests were made in May of this year by Economic Development Minister Valdrin Luka, and during the summer by the Ministry of Commerce. But in both cases, he was rejected by the government, under the argument that the protective tax is imposed only at the moment when it relates to economic effects.

But the move that was taken had nothing to do with economic effects, but political and that after Serbia's influence on removing Kosovo's recognition and non-membership in Interpol.

The move affected citizens' awareness of the consumption of local products and creating the impression that products should still be boycotted by this country.

Neither was the first subject expelled from the measure. During 2018, raw materials worth 50m euros were imported, out of them 80% was purchased from Serbia.

But from business meetings, the chairman of the Kosovo Economic Ode, Berat Rukiqi, has said the first item has been easily replaced. Even so, Serbia has not stood back. Oda's first doubts are in packing Serbian flour in Macedonia. From this country, Kosovo has tripled the amount of import of flour.

The first concerns were also on the possibility of increasing product smuggling. For this, Kosovo Customs had stepped up security measures by conducting 24-hour controls in the Mitrovica region. Sources within Kosovo Customs have told Kohavision that the amount of goods caught in trying to smuggle has doubled since the move was set. According to data provided by KTV, the value of goods referred to the import price is 78 thousand euros. Avoiding customs duties is 150,000 euros.

For the move, great pressure was put on by international authorities. The European Union's top representative, Federica Moghrini, had asked its removal to the country's president, Hashim Thaci. Moghrin had estimated that the move did not help the process build good neighbourly relations. The same request was made by American Secretary of State Mike Pompeii.

The Serbian side conditioned continuing dialogue with the removal of the move, but the country's prime minister did not withdraw from its implementation.

This government decision also got the attention of the biggest project in the country.

On January 19th this year, Economic Development Minister Valdrin Luka published the contract signed with Contour Global, which would take over project management.

The problem proved to be the World Bank's disapproval, from which support had been expected for 15 years now.

Refuting to ensure the project, the World Bank made it under the argument that they would not support in the Balkans electricity projects based on coal.

This also raised the response of civil society, which demanded payment of penalty and resignation from the project.

The same demanded that energy instead be produced through alternative forms.

But, rejected by Minister Luka, for according to him, the thermal power plant will create security with energy supplies.

Investments in the construction of the new thermal power plant are expected to be approximately 1.3 billion euros.

The company “Contour Global” is ready to invest 30% of the tools, while 70 per cent of the project will be realised through credit.

And if the government guarantees this loan, it will increase its external debt.

So far, external debt is close to 1 billion euros, or 16 per cent of GDP, while it is allowed 40 per cent.

With 70 per cent of the 1.3 billion euros expected to cost investment, then it will approach the allowed border, unable state aid in other projects.

Despite this, although it was envisioned for the company to build the thermal power plant to be selected in December and to know the investment value correctly, this did not happen.

Until, at the end of the winter, the project is expected to pass to the Kosovo Assembly for a vote by MPs.

Luka says he expects there will be no resistance from MPs for the vote.

But the project is being welcomed by businesses.

Energy problems do not end with the construction of new “Kosova”.

Kosovo continues not to be recognised as a result of non-membership in the European Network of Operators of the Electricity Transmission System.

That costs COSTT 25m euros.

12 million of citizens' non-paying in Serbian municipalities for the current they use, 10 million from the use of the Transit Line from Serbia and 3 million to pay the loan from investments made on the 400 kilovolt line with Albania.

COSTT chief chief Ilir Shala has said that resolving energy borders is more of a dialogue.

To pressure the ENTSO for recognition of energy borders, as well as finding an alternative for the supply of four northern energy municipalities, COSTT had started withdrawing energy from the European network.

This had caused energy deviations.

For this, NTSO had proposed for Kosovo a solution that conflicts with the energy agreement signed between Kosovo and Serbia in Brussels.

Under the deal, the country's energy borders would be according to geographical boundaries and COST would manage with Wyman.

Even so, a Serbian company would be created, which would only carry out the supply and reading of hours for northern municipalities.

But the temporary solution, dubbed by NTSO, envisions otherwise.

It was designed for Serbia to recognise the energy boundaries of Kosovo, which does not include northern municipalities.

In the end, it had not received the approval of member states, including Serbia.

The next meeting between NTSO, COSTT and the Serbian side was scheduled for 20 November with the same end, with no solution.

And so, Kosovo continues to draw energy from the European network, which so far has reached 12.5m euros, which is not yet known how to compensate.

In addition to the benefits the Albanians benefited from in the four northern municipalities -- Northern Mitrovica, Leposaviqi, Zvecan and Zubin Potok -- had exceptions.

As a result of Serbian seals that municipalities placed in documents, they had never managed to benefit grants.

But, Serbian Minister Nenad Ricalo, through a special programme, addressed 2m euros in grants to these municipalities.

The public company “Telekom” has also faced problems.

Workers sometimes protested and went on strike as a result of salary delays.

Minister Luka even stated several times about the possibility of lowering wages.

But that again did not prevent management from making new employment, whether with contracts on the work.

From a once super-powerful company, Kosovo Telecom completed 2018 with a financial plight, as it concluded in Trepca.

Inflows this year have dropped from 13 million to 12 million.