Tensions in the north disturb foreign investors

This company provides services to the international market, including the development of software, websites, marketing services and sales.

Life, founder and chief executive chief at the company, says that after any turmoil or escalation of the situation in the four Serb-run municipalities, (North Mitrovica, Zvecan, Zubin Potok and Leposaviq) customers from European states and the United States of America present concerns about the possibility of endangering their investments.

“interested if co-operation is to be aborted. Nevertheless, it is presented as general instability in the country. We've had such complaints. But, we've always managed to show you that (in northern Kosovo) it's a more isolated situation, as it can happen in other countries of Europe and the world and does not infect the rest”, she says.

Tensions in the Serb-run populated north began on May 26th, after the new mayors, under Kosovo Police assistance, entered municipal buildings.

Serbian citizens in Zvecan, Leposaviq and Zubin Potok even on May 29th protested to reject the entry of new Albanian mayors into municipal buildings. Their revolution turned into violent clashes with members of NATO's mission, KFOR, 29 May.

Zagray: Current situation disturbs partners
These tensions, Zagray says, cause hesitations in partners with whom they are in negotiations for co-operation.

“Anyway, we still don't know how this situation can affect investments that we haven't already received. With the customers we're working on we've convinced them, because they've been here (in Kosovo) we've been speaking live, but others can worry and leave”, she tells Radio Free Europe.

The IT sector in Kosovo is relatively new and has started to develop in the early 2000s, but has nevertheless managed to provide services on the international market as well.

Ferizaj-based company 'Stree's handling software services export. The owner of this company, Shzen Visi, says not in all cases of unrest react to international partners, with whom they co-operate.

Clients are not very informed about the situation in Kosovo, he says, as most contracts are connected electronically. They are interested in the service rather than in the country.

“Only in one case has happened. A partner from Switzerland has been in Kosovo for business reasons, and riots occurred in northern Kosovo. He worried and asked for security stability”, Visi shows.

Such problems do not have the American company Radix, which also has branches in Pristina. This company offers services to various companies in the world.

Its owner, Wisar Jasiqi, says customers use online services and are not affected by the current situation in northern Kosovo, nor have there been such complaints in the past.

It is not only the IT sector that is suffering from riots in Serb-dominated municipalities. For escalation of the situation in northern Kosovo, Kosovo authorities are blaming Serbia's <x0 criminal and illegal structures”.

OEAK: Investors reluctant to invest in uncertain country
The American Economic Oda in Kosovo has expressed the position that normalising relations between Kosovo and Serbia would benefit the business community and boost foreign investment.

“Unresolved issues between the two countries have created an unstable environment that is discouraging for foreign businesses to invest in Kosovo, as investors are reluctant to invest their money in a country with a high level of political uncertainty, which increases the risks related to their investments”, said in a communique on May 16th.

Tensions in the north increased after young Albanian mayors of Zubin Potok, Leposaviqi and Zvecan took oath in schools and other municipal buildings for security reasons.

And on May 26th, they were assisted by the Kosovo Police after groups of local residents opposed their departure to offices in municipal buildings that were formerly used by Serbian officials.

The international community has strongly condemned the Kosovo Government's decision, as they have said, “to enter by force” into municipal buildings in the north. NATO called for the immediate suspension of the situation.

Meanwhile, Kosovo Prime Minister Albin Kurti said the status quo requires that the basic agreement for normalising Kosovo-Serbia relations be implemented, as well as to calm the situation in northern Kosovo.

Within the context of the dialogue, between Kosovo and Serbia being mediated by the European Union and supported by the United States, the parties reached the basic agreement on normalisation of the reports on February 27th, while in March they agreed to the Annex to implement this agreement.

The agreement does not envision mutual recognition, which Kosovo insists on, but requires Kosovo and Serbia to accept each other's documents and symbols, including passports, diplomas and license plates. / REL