Diplomacy&Commerce 75 by Diplomacy&Commerce magazine

May 2022 | ISSUE No. 75 | Price 350 RSD

09 MAY

www.diplomacyandcommerce.rs

9772466380002

EUROPE DAY MARKED IN NOVI SAD

RESILIENT SERBIAN ECONOMY YULIA USTYUGOVA

Head of IMF’s Office in Serbia

PRESENTATION OF THE NATIONAL MUSEUM OF SERBIA

NEW MODELS FOR NEW TIMES DRAGANA MARKOVIĆ

Director of the Tax Administration of the Republic of Serbia

Israel

THE LAST TRAIN TO JASENOVO Reportage by Robert Čoban

ROOTS OF FRIENDSHIP IN LONG-LASTING RELATIONS

H.E. BASSEL SALAH MOSTAFA AHMED Ambassador of Egypt to Serbia

Mining & Energy FOCUS ON

H.E. YAHEL VILAN The Israeli Ambassador to Serbia

Professor ZORANA MIHAJLOVIĆ, PhD Minister of the Mining and Energy

CLICK TO GO  www.diplomacyandcommerce.rs

The Henokiens FOLLOW US TO STAY UPDATED

FOREWORD

ROBERT ČOBAN Director

WEB

FACEBOOK

t dinner after the opening of the Venice Biennale, inspired by the fact that every house in Venice is three or more centuries old, a diplomat told us an interesting story. It was about an association called The Henokiens (French: Les Hénokiens) which gathers companies owned and managed by the same family for over 200 years. The association was named after Enoch, a patriarch mentioned in the Old Testament, who, according to

YOUTUBE

INSTAGRAM

TWITTER

the Bible, lived 365 years (his son, Metusalem, had an even longer life – according to the legend, he lived for 969 years). The association was established by Marie Brizard in 1981, and at first it had only four members from France, while today it counts 47 members – all from Europe and Japan. The oldest company owned by a single family is the Japanese Hoshi Ryokan, established in 717, and the “youngest” member is the Austrian jewelers “A. E. Köchert” (established in 1814). My interlocutor learnt about this association when the head and member of the 14th generation of the Ital-

TANJA BANKOVIĆ Editor in Chief tanja.bankovic@color.rs ILIJA PETROVIĆ INDIGOCHILD Art director indigochild.ilija@gmail.com NATAŠA NEŠIĆ Advertising director

natasa.nesic@color.rs

JOVANA MARKOVIĆ Advertising manager jovana.markovic@color.rs DRAGANA RADOVIĆ Advertising manager dragana.radovic@color.rs JELENA RANDJELOVIĆ Advertising manager jelena.randjelovic@color.rs NIKOLA PAVLOVIĆ Journalist nikola@ diplomacyandcommerce.rs ROBERT ČOBAN Director robert.coban@color.rs

Photos GORAN ZLATKOVIĆ SHUTTERSTOCK Translation SNEŽANA BJELOTOMIĆ Print ZLATNA KNJIGA Jagodina Bagrdanski put bb

”Color Media Communications” LTD, 21132 Petrovaradin, Štrosmajerova 3 TIN 107871532 Matriculation number 20887303 Phone: +381 21 4897 100 Office: Braće Jugovića 23/2, Belgrade Phone: 011 4044 960 CIP - Katalogizacija u publikaciji Biblioteke Matice Srpske, Novi Sad 33 Diplomacy & Commerce / glavni i odgovorni urednik Tanja Banković, 2016, br. 1 (mart)-.Novi Sad: Color Media Communications, 2016 - , -33cm Mesečno. ISSN 2466-3808 = Diplomacy & Commerce COBISS.SR-ID 303269895

ian Beretta family, the famous Italian weapons manufacturers (established in 1526) told him that there was a meeting that was more important than a meeting with the head of a certain state. It turned out that Hugo Beretta was going to the Henokiens Annual Congress. They say that in our region only 22% of family companies survive the transition from the 1st to the 2nd generation. Less than 1% reaches the 3rd generation. If we set aside the revolutions, wars and nationalizations – this is just a matter of our mentality. What do you think, when will someone from Croatia, Serbia, Bosnia Herzegovina, or even Slovenia, enter The Henokiens club?

CONTENT

RESILIENT SERBIAN ECONOMY

ULIA USTYUGOVA

NEW MODELS FOR NEW TIMES

Head of IMF’s Office in Serbia

DRAGANA MARKOVIĆ

ROOTS OF FRIENDSHIP IN LONG-LASTING RELATIONS H.E. BASSEL SALAH MOSTAFA AHMED Ambassador of Egypt to Serbia

KEEPING UP WITH INFORMATION IGOR BOŽIĆ News Director at N1 TV, Belgrade

THE NATIONAL CLIMATE AND ENERGY PLAN IS BEING DRAFTED Conference

Director of the Tax Administration of the Republic of Serbia

WE WILL CONTINUE TO EDUCATE THE ENTIRE DIGITAL ECOSYSTEM ZORANA MILIDRAG President of the E-Commerce Association of Serbia

FOCUS ON ENERGY EFFICIENCY AND GREEN ENERGY Professor ZORANA MIHAJLOVIĆ, PhD Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy

ENERGY STABILITY AND CHALLENGES CAUSED BY THE GLOBAL CRISIS DR MILINKO RADOSAVLJEVIĆ Mining engineer, Director of the Mining Institute

THE NEW SWISS COOPERATION PROGRAMME FOR SERBIA Event

PRESENTATION OF THE NATIONAL MUSEUM OF SERBIA Cultural heritage building

15 YEARS OF BELDOCS MARA PROHASKA MARKOVIĆ Director of the Beldocs Festival

‘TIS BUT A FLESH WOUND

Russia’s Economy is Back on its Feet There's a reason for its resilience

n early april we pointed to preliminary evidence that the Russian economy was defying predictions of collapse, even as Western countries introduced unprecedented sanctions. Recent data further support this view. Helped along by capital controls and high interest rates, the rouble is now as valuable as it was before Russia’s invasion of Ukraine in late February (see top chart). Russia appears to be keeping up with payments of its foreign-currency bonds. The real economy is surprisingly resilient too. True, Russian consumer prices have risen by more than 10% since the beginning of the year, as the rouble’s initial depreciation made imports more expensive and many Western companies pulled out, reducing supply. The number of firms late on their wage payments seems to be growing. But “real-time” measures of Russian economic activity are

EVEN BEFORE THE INVASION RUSSIA WAS A FAIRLY CLOSED ECONOMY, LIMITING SANCTIONS’ BITE. BUT THE BIGGEST REASON FOR THE ECONOMY’S RESILIENCE RELATES TO FOSSIL FUELS largely holding up. Total electricity consumption has fallen only a smidge. After a lull in March, Russians seem to be spending fairly freely on cafés, bars and restaurants, according to a spending tracker run by Sberbank, Russia’s largest bank. On April 29th the central bank lowered its key interest rate from 17% to 14%, a sign that a financial panic which began in February has eased slightly. The Russian economy is undoubtedly shrinking (see bottom chart), but some economists’ predictions of a GDP decline of up to 15% this year are starting to look pessimistic. Even before the invasion Russia was a fairly closed economy,

limiting sanctions’ bite. But the biggest reason for the economy’s resilience relates to fossil fuels. Since the invasion Russia has exported at least $65bn-worth of fossil fuels via shipments and pipelines, suggests the Centre for Research on Energy and Clean Air, a think-tank in Finland. In the first quarter of 2022 the government’s revenues from hydrocarbons rose by over 80% year on year. On May 4th the European Commission proposed a ban on imports of all Russian oil that would come into full force by the end of the year. Until then, expect the Russian economy to continue to trundle along.

From The Economist, published under licence. The original article, in English, can be found on www.economist.com

CLICK TO GO  www.diplomacyandcommerce.rs

READ THIS ON WEB

INTERVIEW

by Nikola Pavlović

Resilient Serbian Economy Serbia’s medium-term outlook, while uncertain, remains favourable, supported by the authorities’ commitment to structural reforms YULIA USTYUGOVA

cantly lower. What are your projections for this year? — Indeed, higher global energy and commodity prices fuel inflationary pressures across all the countries. In Serbia, inflation grew to 9.1 percent in March. At the same time, core inflation that excludes food, energy, alcohol, and beverages has been significantly lower, at 4.8 percent, and inflation expectations have remained reasonably anchored so far. Importantly, monetary policy has been tightened since October 2021, in response to the rising inflation. Taking all these factors into account, we expect Serbia’s inflation to remain elevated over the next months amid high global inflation, but commence a gradual decline in the second half of 2022, assuming that food price inflation subsides after last year’s drought-induced price hike. We will release the updated inflation projections in late June.

Head of IMF’s Office in Serbia

e are currently living in rather turbulent times and many countries are facing serious economic challenges. Globally, fuel and food prices have increased rapidly, while financial stability risks have also risen. In her interview, Yulia Ustyugova, Head of the IMF's Office in Serbia, talks about the external shocks affecting Serbia’s economic outlook, inflation projections, financial stability and the ongoing agreement between Serbia and the IMF.

The IMF’s assessment of the Serbian economy has been positive throughout the pandemic. When, do you think, Serbia will return to the pre-pandemic GDP growth? — The Serbian economy has indeed demonstrated a high level of resilience helped by agile policy response during the COVID-19 pandemic. Following a mild contraction in 2020, real GDP strongly rebounded by 7.4 percent in 2021 and approached its pre-COVID trend. Not only production but also employment recovered more rapidly than in many other countries. Macroeconomic and financial stability was maintained. Until the war in Ukraine started, Serbia was expected to converge to the pre-pandemic economic trends already in 2022. The war, however, triggered a costly humanitarian crisis and disrupted economic recovery. Economic damage from the conflict will contribute to a marked reduction in growth for Europe and hence for Serbia. The latest IMF World Economic Outlook, for example, projects GDP growth in advanced European economies and emerging European economies (excluding Belarus, Russia, Turkey, and Ukraine) to decline in 2022 by one and 1.5 percentage points, respectively, compared to the previous forecasts. Several major economies—such as France, Germany, Italy, and the United Kingdom—are projected to

THERE ARE SEVERAL CRITICAL REFORM AREAS UNDER THE IMF-SUPPORTED PROGRAM PLANNED FOR THE PERIOD AHEAD barely expand or even contract for two straight quarters this year. What is your assessment of Serbia's GDP trends this year? — According to our latest assessment, lower growth in trading partners and higher global commodity prices could curtail Serbia’s real GDP growth to around 3.5 percent in 2022. This is one percentage point below our previous forecasts. Moreover, nearterm risks to the outlook are elevated and mostly to the downside. These risks include more pro-

longed or more severe spillovers from the war in Ukraine. They also stem from growing energy prices and energy supply disruptions, further trade disruptions, and lower global demand. I do want to mention that Serbia’s medium-term outlook, while uncertain, remains favourable, supported by the authorities’ commitment to structural reforms. Although inflation has been driven by rising food and energy prices worldwide, core inflation in Serbia has remained signifi-

The euro/dinar exchange rate is still stable, as is Serbia’s financial sector. Can the Ukrainian crisis cause a significant fluctuation in the exchange rate and financial stability in Serbia? — Regarding financial stability, as mentioned in the latest IMF Global Financial Stability Report, the war in Ukraine fuelled financial stability risks globally. The National Bank of Serbia acted swiftly and appropriately to manage and mitigate those risks. It timely initiated a resolution procedure in respect of Sberbank Srbija and quickly finalized its acquisition by a domestic banking group. The financial system has also been provided with sufficient foreign cash to meet additional requests driven by uncertainty. The banking system remains well-capitalized and liquid, but continued vigilance is of course essential. As for the exchange rate stability, the National Bank of Serbia has repeatedly emphasized that the exchange rate would be kept stable through this crisis. Exchange rate stability has also been successfully maintained throughout the COVID-19 pandemic, which

CLICK TO GO  www.diplomacyandcommerce.rs

helped preserve confidence and anchor inflation expectations. The adequate level of foreign exchange reserves of the NBS offers an important buffer to financial disturbances that we witness these days. Continuation of reforms and further growth are just some of the priorities for the next period, according to the IMF mission in Serbia. Apart from this, what should be the other priorities of the new Serbian government? — There are several critical reform areas under the IMF-supported program planned for the period ahead. These include anchoring medium-term fiscal discipline with a new set of fiscal rules to provide clear and credible signals about the government’s fiscal commitments and fiscal sustainability. They also include implementing the SOE ownership and governance strategy, making progress under the new capital market development strategy, and pursuing the transition to greener growth. Among other priorities, I would emphasize the urgent need for rigorous reforms in the main en-

ergy companies and the sector overall. As you know, the disruptions in domestic electricity production during the 2021-22 winter coincided with rising international gas and oil prices and significantly increased energy costs to Serbia’s economy and the government budget. Mitigating these problems will require not only adjusting energy tariffs to support cost recovery and financial sustainability of the energy companies but also implementing more fundamental governance reforms in these companies. Moreover, it is important to formulate and roll out without a delay a new energy investment strategy to underpin energy security and the greening of energy generation in Serbia. Serbia is prominently positioned on the investment destination map. What else can the country do to increase the FDI influx?

— In the current context of high uncertainty, the immediate priority is to preserve macro-fiscal and financial stability and mitigate the impact of the ongoing external shocks. This will help ensure a more predictable environment for the existing and new businesses. Here I would like to underscore that maintaining macro-fiscal and financial stability has clearly been a priority for Serbian policymakers, who also formed a task force to help the companies navigate supply chain disruptions. At the same time, it will be important to continue with structural reforms to improve the investment climate, strengthen rule of law, and enhance governance. Such reforms should further anchor confidence and improve competitiveness, thus maintaining Serbia’s attractiveness for the FDI. In addition, focus on digitalization will be instrumental for

I WOULD EMPHASIZE THE URGENT NEED FOR RIGOROUS REFORMS IN THE MAIN ENERGY COMPANIES AND THE SECTOR OVERALL

Serbia’s transition to a knowledgeand innovation-based economy, attractive for the quality-FDIs. Last year, Serbia concluded a new advisory arrangement with the IMF, which will last until the end of 2023. Could you tell us a bit more about the most important points of this arrangement? — This arrangement is called Policy Coordination Instrument (PCI). It was designed for the countries that do not need the IMF financial resources but want to demonstrate commitment to a coherent reform agenda, communicate this commitment domestically and externally, and benefit from continued policy discussions. Like other IMF arrangements, the PCI involves reform targets and reviews to provide regular feedback on program performance. I am pleased to say that the First Review Under the PCI was already successfully completed in December 2021. The Second Review will be considered by the IMF Executive Board in June 2022, when we also expect to release a new report with a detailed discussion of economic developments and challenges facing Serbia.

READ THIS ON WEB

INTERVIEW

by Žikica Milošević

Roots of Friendship in Long-lasting Relations Egypt and Serbia have been working during the past few years on boosting economic cooperation to expedite key segments of cooperation. There is a strong potential for intensifying the economic relations in agriculture, trade in agricultural products, investment and ICT

H.E. BASSEL SALAH MOSTAFA AHMED Ambassador of Egypt to Serbia

ood relations between Serbia and Egypt have not just been surviving but also prospering. The new Egyptian Ambassador to Serbia, H.E. Bassel Salah Mostafa Ahmed, spoke about economic cooperation between the two countries, tourism and cultural exchange, as well as also about the situation in Egypt in light of the current events in Ukraine.

The friendship between Egypt and Serbia has been validated many times. What are your plans regarding diplomatic and political cooperation between the two countries during your term? — Lately, I had the honour of meeting H.E. Mr. Aleksandar Vučić, President of the Republic of Serbia, and H.E. Mr. Nikola Selaković, Minister of Foreign Affairs, and both of them showed great interest in advancing bilateral cooperation between the two countries in all fields. I was assured that the two countries will continue their positive and constructive approach towards each other. During my term, I will pay great attention to facilitating visits of top officials, attempt to hold political consultations headed by the two ministers of foreign affairs, organizing training courses for junior diplomats in both countries, and expanding cooperation in the political-security field especially in peacekeeping through the draft MoUs signed between the University of Belgrade’s Faculty of Security Studies and the Cairo International Centre for Training on Conflict Resolution and Peacekeeping in Africa (CCCPA). Also, there are many opportunities which can be exploited in areas such as agriculture, tourism, health care and the construction and machinery industries.

TO ENHANCE THE BILATERAL ECONOMIC RELATIONS, THE EMBASSY IS COORDINATING SEVERAL VISITS FOR BUSINESS PEOPLE FROM EGYPT Can our economic cooperation improve and what does the Embassy do to facilitate the business and trade between the two countries, considering that nearshoring is the latest thing due to the container transport prices skyrocketing? — Egypt and Serbia have been working during the past few years on boosting economic cooperation to expedite key segments of cooperation. There is a strong potential for intensifying the economic relations in agriculture, trade in agricultural products, investment and ICT. Egypt is focusing on two main mechanisms for boosting bilateral

cooperation with Serbia. The first is the governmental mechanism represented in the Joint Committee for Economic, Technical and Scientific Cooperation, at its 19th Session that will be held in Cairo with the participation of a number of relevant Egyptian and Serbian ministries to discuss the prospects of the economic cooperation between both countries. The second mechanism is the private sector mechanism represented in the Egyptian-Serbian Joint Business Council, which its meeting will be held on the margins of the next meeting of the Joint Economic Committee. To enhance the bilateral eco-

nomic relations, the Embassy is coordinating several visits for businesspeople from Egypt. In July 2021, a number of business people from the tourism industry visited Serbia and held meetings with the officials and private companies in Belgrade and Nis. In September 2021, several business people from agricultural product export and import companies from Alexandria visited the International Agricultural Fair in Novi Sad and had a meeting with the Novi Sad officials in light of the cooperation agreement between Alexandria and Novi Sad. We are facing tough times because of the war in Ukraine, with political pressures and a looming economic crisis. How is Egypt coping with all that? — Economic analysis shows clearly the negative impacts of the crisis of Ukraine on the global economy, compounded, of course, by the effects of the Covid-19 pandemic, as well as the global in-

CLICK TO GO  www.diplomacyandcommerce.rs

flationary wave, which increased the prices of food and other basic commodities. The situation will deteriorate economy-wise worldwide if the current crisis resumes for a longer time. Ukraine is a major source of wheat, corn and barley in the world and the lack of yellow maize imports will raise the prices of basic commodities in the world which will lead to a rise prices of meat and dairy products. Egypt is already affected concerning food commodities, especially wheat, as 80% of the wheat imports are from Russia and Ukraine. The Egyptian government is keen on coordinating with all state agencies to provide sufficient essential goods for Egyptian citizens, especially wheat, rice, sugar, cooking oil, and meat and ensure that strategic stocks are at safe levels to avoid causing any shortages in the domestic market. You participated in the Summer 2022 conference, which discussed the impact of the Eastern European crisis on tourism. Would is your opinion about that? — I participated in the conference and in my speech, I explained the importance of the tourism industry, which remains one of the main sources of national income for any tourist country like Egypt and as a result, we always pay great attention to developing the tourism sector. The current crisis in Eastern Europe may have had effects on the tourist destinations around that period but Egypt has numerous types of tourism, which meet all the requests of the travellers. The most common type of tourism in Egypt is of course cultural tourism which is related to visiting the ancient monumental destinations which feature the timeless treasures of the ancient times. In addition, many other types of tourism encourage travellers to select Egypt as their top destination such as religious tourism, recreational tourism, medical tourism, desert tourism, eco-tourism, and diving and sea-related activities tourism. The effects of the crisis are tangible and clear, but we are hoping that it will have minimal effect on tourism in Egypt since it is a yearround destination. What connected us in the past was taking the same side in wars, with the Yugoslav king taking refuge in Egypt in 1941.

many Serbian tourists have decided to spend their Easter vacation in Egypt. The Red Sea coast has become the first-choice destination for most Serbian tourists.

housing units and an entire digital transformation system. Also, several advanced recreational infrastructure projects are being implemented. Currently, we are in the preparation phase. The State is racing against time to officially inaugurate the city which is envisaged as an architectural icon proving the value of the Egyptian State while simultaneously tackling one of the most difficult problems facing Cairo - overcrowdedness.

Egypt is one of the countries that have moved their capital into a newly-built city. The new capital is going to be stunning. We visited it on a group trip in 2019. How is the construction going on? Have you picked the name for it? — The government has decided to establish Egypt’s New Administrative Capital City east of Cairo, which will alter the country’s infrastructure and usher us into a new era of modernization. It will also serve as a new centre for government buildings, ministries, embassies, universities, and corporations to provide a focal point for the country’s businesses. The city will span 168,000 acres, which is equivalent to Singapore area. Once the city is completed, it will have a population of 6.5 million people and job opportunities for 2 million people. This is a full-service city with shopping malls, high-quality

The Egyptian Embassy has initiated a strong cultural exchange between Egypt and Africa, on the one side, and Serbia, on the other. What are your plans regarding cultural cooperation? — I have to highlight the unique role that cultural relation plays in boosting the relations between our two countries towards Africa. Egypt is the gate for Serbia when it comes to introducing its culture to Africa and vice versa. The Embassy always promotes Egyptian folklore through cultural visits from Egypt or participation in several cultural events in Serbia. Currently, we are preparing for Africa Day and the celebration of Serbia and Africa Friendship Day in May 2022, in addition to our participation in the international folklore festivals in Serbian towns of Bogatić, Loznica, Sremska Mitrovica and Bečej. Finally, there is also the Nišville Festival 2022 which will take place in August 2022.

EGYPT IS ONE OF THE BEST DESTINATIONS FOR SERBIAN TOURISTS. THE NUMBER OF SERBIAN TOURISTS WHO VISITED EGYPT INCREASED VASTLY IN THE PAST FEW YEARS After that, the Non-Aligned Movement brought us even closer. Today, that's tourism. What do you think the post-pandemic 2022 tourist season will be like? — Our friendship is rooted in long-lasting relations. The NonAligned Movement (NAM) was a catalyst to highlight our similar views of the international community and our respect for international law and tradition. That being said, tourism connects us further, as Egypt has monumental sites and blissful climate throughout the whole year and a unique geographical location, which make our country the top destination listed in the travel plans of most travellers and adventurers. Also, we take pride in ourselves on the fact that we are well-prepared to receive tourists all year round. Egypt is one of the best destinations for Serbian tourists. The number of Serbian tourists who visited Egypt increased vastly in the past few years. For instance, in 2021, the number of Serbian tourists in Egypt went up by almost 90% in comparison to 2019. The 2022 summer season has already started, and

INTERESTING FACTS

NATIONAL DAYS

Global Currency Through History... What is Next?

MAY

POLAND

ational Day N (Constitution Day)

ICRC, IFRC

I nternational Red Cross Day

09 EU

ational Day N (Schuman Day)

he fact that we, in Europe, as well as in the North African countries (Morocco, Tunisia, etc.) calculate everything in euros, only shows that the euro is a global and pan-European currency. But how is that true when the US dollar has been considered a global currency for hundreds of years? And what happened earlier in history? Some say that the Roman sesterius was the first global currency, but as the Romans did not have a long "reach", the sesterius was a kind of forerunner of the euro. The first real global currency was the Spanish real, or peso. It was often called "real de a 8", because 1 peso, a silver coin, was often physically divided into 8 pieces, which were used for small transactions. The peso started to be used in 1497 and as a result of the Spanish conquests of the Ameri-

cas and enormous wealth, it became globally used money. After the independence of Mexico and the South American colonies, and the rapid rise of Britain as a colonial power, the peso was replaced by the British pound, a symbol of the enormous "empire in which the sun never sets" and the UK dictating the world economy. But in 1944, the tortured Britain gave way to the new giant, the United States and its dollar. The loss of the colonies after WWII became

ISRAEL

Independence Day

NORWAY

Constitution Day

ARGENTINA

Primera Junta Day JUNE

ITALY

Festa della Repubblica

DENMARK

Constitution Day

JASNA TERZIĆ New Chairwoman of the Executive Board of Erste Bank a.d. Novi Sad The current Chairman of Erste Bank’s Executive Board, Slavko Carić, is leaving this position and will be replaced by Jasna Terzić, a member of the Bank’s Executive Board. After the National Bank of Serbia gives its required approval, Jasna Terzić will be officially appointed as the Chairwoman of the Executive Board of Erste Bank on June 1st. In addition to the new role of the head of Erste Bank’s Executive Board, Jasna Terzić will continue to helm the bank’s Retail Division and will temporarily assume the manage-

crucial, and following the abolition of the so-called gold standard in 1971, the era of printing dollars began. Many want to overthrow the US dollar from its 'global throne'. The first notable attempt was in the 1980s and the second in the 21st century, with the introduction of the euro. Both attempts failed. Will sanctions against Russia help de-dollarize the world? It remains to be seen. We are currently in the "era of the third global currency".

ment of the Capital Market and Corporate Banking divisions, until a new executive is appointed to manage these two divisions. After graduating from the University of Novi Sad’s Faculty of Economics, specializing in international economic relations, Ms Terzić entered the world of banking almost three decades ago. Since October 2005, she has been a member of the Executive Board of Erste Bank. She helms the bank’s operations relating to retail customers, small businesses, marketing, human resources and asset management.

SWEDEN

National Day

RUSSIA

Russia Day

ICELAND

Republic Day

MALTA

ational Day N (St John the Baptist)

CROATIA

Statehood Day

SLOVENIA

Statehood Day

CLICK TO GO  www.diplomacyandcommerce.rs

READ THIS ON WEB

INTERVIEW

by Nikola Pavlović

Keeping up With Information We have new plans for a prime-time programme that will be even more dynamic and defined. Furthermore, we’ll have some fresh faces who will be a valuable addition to our team of journalists. We will be practically live from morning till late in the evening, so you will watch everything that happens on our TV station first

IGOR BOŽIĆ News Director at N1 TV, Belgrade

n the previous period, the N1 television has launched several new shows. In his interview, Igor Božić, News Director at N1 TV, talks about these shows, plans and his beginnings as a journalist.

You started your career on Studio B radio, before switching to the eponymous TV station. What did your early days as a journalist look like in the turbulent first half of the 1990s? — I started my journalistic career in probably the most challenging and dynamic media outlet at the time and the most experienced morning programme newsroom with Djoko Vještica and Bojana Lekić at its helm. This was the time of sanctions, wars and hyperinflation, we didn’t have mobile phones, the news arrived via fax machine and everything was very different. We had direct daily contact with the audience, who trusted us. We solved people's problems by calling the relevant institutions which, at that time, were run by people who knew very well that it was better for them to pick up the phone and answer when one of Djoko Vještica’s journalists was calling, regardless of how bad the repercussions would be for them. We reported live via our Motorolas, which signal covered only the centre of Belgrade. As for other areas, we simply had to manage the best we could. For instance, we used to ask a local baker or shop owner to allow us to report live by using their landline phones. So, everything was more complicated and challenging, but we quickly learned how to solve practical problems. Things weren't much easier even at Studio B NTV. The RTS team, for instance, had five or six members but we always had only one cameraman and one journalist and were constantly struggling due to a lack

I HAVE TO ADMIT THAT I MISS QUALITY DUEL SHOWS, AND WHEN I SAY ‘QUALITY’, I AM PRIMARILY REFERRING TO A DEBATE WITH ARGUMENTS AND POINTS OF VIEW, NOT A DEBATE ABOUT FACTS of the much-needed technology and equipment. Literally, journalists had to learn to produce everything on their own. Sometimes we had to learn how to use a camera if our cameraman was not available. Sometimes we had to use a beat-up old car which often broke down and then, when that happened, figure out how to get up Bubanj Potok to reach the motorway and fill up the car's water cooler with ordinary tap water (since distilled water was a luxury). We covered street protests and political rallies, but also reported from the battlefield, often with

semi-working cameras. All of us who started our journalistic career back then didn't do it because it brought a certain status, but because we sincerely believed that our job meant something, that conveying the right information and topics, which were hidden from the public even then, could help the public to finally get a real picture. You switched from Studio B to the then BK Television and had your own show called Tête-àtête, a form of a TV duel. Today, when such media format is al-

most extinct or has a much milder form, what do you think of the public dialogue back then compared to today’s? — Tête-à-tête was actually Tanja Jordović’s show, which I occasionally did. Even then, it was not easy to find two sides that would agree to a duel of opinions, but we succeeded. They did not need to get permission from the "boss". Public figures were more independent back then, had integrity and not everything was prepared in advance. Spontaneity and sincerity are important for leaving an impression. I'm afraid we don’t have that anymore, not even in traces, when it comes to staged TV duels broadcast on privileged TV stations. I do not idealize the 1990s, but at that time, we had more options for dialogue and debate than today. Of course, the then president was out of reach for the free media, as is the current president

CLICK TO GO  www.diplomacyandcommerce.rs

of Serbia, but he was much less present in the media. At that time there were no social networks, so duels and dialogues were exclusively shown on TV, less often on the radio. Now, we a cacophony of noises and you can practically predict what someone will say. On the other hand, I have to admit that I miss quality duel shows, and when I say ‘quality’, I am primarily referring to a debate with arguments and points of view, not a debate about facts. It seems to me that, in Serbia, facts not points of view are discussed, which is a problem. That is not a debate, but a lying/distortion of the truth. You have spent most of your career working for B92. Why, do you think, has such a large television company downgraded to today’s level? — The TV station that today bears the name ‘B92’ is not a real B92. I think that is completely clear to the audience. The sale of B92 to the Greek group Antenna led to a huge editorial change. The B92 TV that used to uncover scandals and bad moves by the state authorities now is covering them up. Everything that represented B92 was stricken off very quickly. Antenna then sold B92 to Copernicus and its programme became a carbon copy of pro-regime TV stations. B92 was a medium that grew out of youth radio, gathering people with specific energy and attitude during the 1990s, and then later at the beginning of this century. B92 used to be a part of the history of good, critical journalism, a kind of journalism that is now history at B92. A certain part of the public perceives N1 in the same way as the former B92. What do you think about that? — A lot of N1 journalists did work for B92, but they still make a minority of N1’s editorial office. The audience sees N1 as an alternative to the pro-regime media, and that is probably one of the reasons for the analogy with B92. However, N1 is not B92 and should not be viewed as such. Foreign investors are the owners of N1 and we have an international board of editors. We are formatted as a news channel. B92 has not survived the attempt to switch to the mainstream format, and N1 has been launched as the mainstream medium which has been growing for the last eight years.

AS ALWAYS, WE REACT QUICKLY IN EVERY BREAKING-NEWS SITUATION AND WE ARE THE AUDIENCE’S FIRST CHOICE WHENEVER SOMETHING ‘BIG’ HAPPENS N1 TV has been facing some kind of boycott by certain state officials. How difficult is it to maintain a balanced media image in such a situation? — We cannot simply give up if the government deliberately avoids N1 in an attempt to discredit it because it does not control it. That's why we go to all the events to ask questions to government officials who refuse to come to our studio. Oftentimes, instead of answers, our journalists are met with insults, which makes the whole situation even more difficult. It is not easy to work in such circumstances, but it is the only possible way if you want to do the job professionally. It is also frustrating when politicians abuse their positions by spreading misinformation about N1, frequently presenting us as a political opponent. Since last autumn, N1 has been broadcasting new shows with familiar faces. How did the audience react to these new projects? — Judging by the ratings measured by the TV Beat platform, the reception was very good. Our viewership is growing, and above all, new products such as the research and documentary show called ‘Ispod Površine’, then pro-

grammes like ‘Rekonstrukcija’, ‘Global Focus’, ‘Da Razumemo’ and ‘Iza Vesti’ with Danica Vučenić as an anchor. As always, we react quickly in every breaking-news situation and we are the audience’s first choice whenever something ‘big’ happens. This is our greatest advantage - to adapt quickly and give the audience the fastest and most accurate information. Along with the TV programme, our website is becoming increasingly influential, which has become evident when the war in Ukraine erupted or when we reported election results as they were coming in. In those two instances, N1 had the most-watched programme in the entire SBB network and our website also ranked in the top three sites in Serbia by the number of visits. As a traditional medium, television does not hold much influence over the younger population. What do you think about the future of television, specifically in Serbia? — Indeed, the younger generations do not perceive TV as an exemplary medium. That is why we are equally committed to developing in the digital world too. However, it is difficult to expect that

TV will become extinct as a medium. Rather, it is more realistic to assume that TV will be an important outlet for live events, that is sports and news. Entertainment, cultural and artistic content will probably soon be available to the public only on streaming platforms. However, the option to rewind or watch shows within the EON package (e.g. the N1 Izbor option) actually allows the audience not to have to adjust their time to the TV schedule. Younger generations use this feature, while older ones like to watch the programme live. However, the TV will survive, and it is up to us to adapt to the audience’s demands. You have been the news director at N1 for nearly a year now. What are your plans for this TV station? — We have new plans for a primetime programme that will be even more dynamic and defined. Furthermore, we’ll have some fresh faces who will be a valuable addition to our team of journalists. We will be practically live from morning till late in the evening, so you will watch everything that happens on our TV station first. Along with the expansion of our programme scheme, we plan to launch new digital content like podcasts and a substantial number of video clips that will be adapted to online audiences. The basis of everything is that we are free in an editorial sense and that no topics are taboo to us, and that will not change. We do not plan to gamble on hard-earned trust.

READ THIS ON WEB

CORPORATE

Lean Six Sigma and Family Friendly Enterprise certification benefits When we create in a company a balance between private and business life and when we understand the needs of employees, we create an environment for work in which everyone will feel good and motivated CLICK ON ICON 

WEBSITE

ers, to the advanced techniques as GSES and Lean Six Sigma. It is good to know that the good service almost always leads to the better economic results. In the case of Lean Six Sigma it is also the imperative and only the verified financial effects are recognized. Of course, no standard can help if your staff is undertrained. We always recommend more training, especially because the fluctuation of the people today is higher than ever before. Properly trained staff cannot just deliver good service, but also they will be able to implement the standards and tools and to enable organizations to be resistant to the changes and challenges.

KRUNA GAVOVIĆ Marketing and Academy Director at TMS CEE and CEO at The Lean Six Sigma Company CEE

bout HR issues and TMS, ensuring the good quality of the service and about the Lean Six Sigma concept and The Lean Sigma Company CEE, we talked with Kruna Gavović, Marketing and Academy Director at TMS CEE and CEO at The Lean Six Sigma Company CEE.

How can TMS help organizations deal with HR issues in the best possible way? — TMS is the exclusive license holder for a highly advanced HR concept – Family Friendly Enterprise certification. Friendly Enterprise certificate implies implementation of HR policy in the field of sustainable business, which refers to the harmonization of private and professional life of employees. Satisfied and loyal employees are the key to the growth and development of the company, and through this certificate this can be achieved. Absence due to an extraordinary family reasons, flexible working hours, private health insurance, personal development training and award program, support for the fathers caring for a child or mothers returning to work after maternity leave, organized gatherings of employees, work from home, all these and many more are the benefits that Family Friendly Enterprise certification brings to the employees and their families in this challenging time. When we create in a company a balance between private and business life and when we understand the needs of employees, we create an environment for work in which everyone will feel good and motivated. Our clients say that employee’s satisfaction is their priority and they have been evaluating their satisfaction and motivation at work for a long time in order to

PROPERLY TRAINED STAFF CANNOT JUST DELIVER GOOD SERVICE, BUT ALSO THEY WILL BE ABLE TO IMPLEMENT THE STANDARDS AND TOOLS AND TO ENABLE ORGANIZATIONS TO BE RESISTANT TO THE CHANGES AND CHALLENGES respond to their needs and when they entered into the FFE certi1fication process they created phenomenal stories about business results and positive impact on society. In addition to 20 big organizations which already implemented this model, like Telekom Srbija, Merkator S, Generali Insurance, A1, Roaming Group, Apatinska Pivara, to mention just a few, there is growing interest from

smaller organizations (10-50 employees) too. We are extremely proud to say that Family Friendly Enterprise is the best-known concept for achieving the work-life balance. How a company can ensure the good quality of the service? — There are several standardized ways – from generic standards like ISO 9001, ISO 10002, or oth-

Can you tell us more about the Lean Six Sigma concept and The Lean Sigma Company also? — The Lean Six Sigma Company from Rotterdam developed itself into the leading global provider of Lean Six Sigma trainings. TLSSC is active in more than 25 countries across the globe and offers many Lean and Six Sigma courses in the native languages of each country. This year is very special for us, since we celebrate 20 years of the company and we are very proud to announce that. Our ambition is to facilitate the organizations to excel in what they do and our focus is on knowledge transfer through trainings, workshops and coaching. Lean Six Sigma is an established philosophy, an organizational and improvement structure as well as the set of tools. Using this perspective Lean Six Sigma addresses organizational issues with respect to competitiveness, cost reduction and customer satisfaction. Depending on company’s ambition Lean Six Sigma can be implemented in phases. Every organization is unique, without a common blueprint that universally applies. Together with you, The Lean Six Sigma Company will develop a plan of action tailored to your organization.

CLICK TO GO  www.diplomacyandcommerce.rs

READ THIS ON WEB

CORPORATE

Proud of 22 Years of Providing Education Today, the University Business Academy comprises eight faculties and aims to become a reputable institution in terms of education and research in all five scientific fields stitution in terms of education and research in all five scientific fields, while insisting on the personal integrity of each student, teamwork, effective communication, ethical behaviour, and all that coupled with a proactive approach in terms of the necessary and occasional modifications of our curricula with the view of aligning them with the current social changes.

CLICK ON ICON 

WEBSITE

YOUTUBE

The University provides a wide and flexible range of high-quality curricula. Is there a plan to expand them? — We have all the means for further development and expansion. We plan to accredit study programmes in the English language and maybe even have a joint study programme with some of our partners around the world. In the last few years, we introduced several study programmes at all study levels; some completely new and others improved and updated. So, we are constantly expanding our already wide variety of study pro-

all the requirements of the today’s higher education, scientific and practical work, while at the same time, considering and respecting the wishes of our students. We have been engaged in all fields of work - from education and science to cooperation projects with international institutions and universities in the country and abroad. Not only have we managed to establish excellent contacts and cooperation with them, but we are constantly improving and developing them. It is really difficult to single out the ones we are the proudest from a vast variety of activities, but we are confident that we did our best to establish and develop international cooperation and good relations with others - individuals and institutions alike. The University provides complete support to the students and is developing the Alumni Club. What kind of support can students expect to receive from the University?

THE ALUMNI CLUB, WHICH EXISTS AT ALL OUR FACULTIES, IS ANOTHER VALIDATION OF A JOB WELL DONE

Professor MARKO CARIĆ, PhD University Business Academy, Rector

n honour of the University Business Academy’s two decades of operations and successfully educating students, we spoke with the University’s Rector, Professor Marko Carić, PhD, about the University’s activities, curricula, changes and plans.

The University Business Academy in Novi Sad is the first privately accredited university in Vojvodina. Could you give us a short retrospection of the University’s last 22 years?

— We are very proud of everything we have done in the last twenty-two years. First of all, we have built the name, identity, brand and image of our University based on a creative and proactive approach. If we look at the first years of the University Business Academy and the University as it is today, we can notice a big difference. It is not just about the received accreditations, but also about significant figures, such as the number of students, projects, papers cited in the SCI list of journals and many more. Today, the University Business Academy comprises eight faculties and aims to become a reputable in-

grammes and improving them to follow the current development of science and technology and to be synchronized with labour market demands. Cooperating with businesses and international cooperation are very important factors in the University’s development. Could you tell us more about that? — We have been constantly trying to improve our operations by adding new activities, anticipating our compatibility with the environment, and connecting as successfully as possible with countries in the region to build a small, but flexible and efficient system that meets

— The Alumni Club, which exists at all our faculties, is another validation of a job well done and of completed education and training, because we have many excellent colleagues who have proven their worth in their jobs, are valued and occupy high positions in their work and profession they perform. We will develop this segment even more in the coming period because we, like the most prestigious universities in the world, are proudest of the professional results and careers of our former students. A large number of our students get a job after graduation and start building their careers with real knowledge and skills

CLICK TO GO  www.diplomacyandcommerce.rs

that are in demand in the market. For those who continue pursuing higher levels of education, we offer the opportunity to continue with their education and see all the advantages and disadvantages of working while studying. The decision is definitely up to them. We are here to support and guide them in all processes, both educational and scientific. When our former students are faced with a seemingly insurmountable obstacle in their career development, the University’s doors are always open to them and they will always be able to reach our professors for support, advice, new information or knowledge. You also have a lot of additional extracurricular activities, such as forums and guest appearances. What plans do you have for the coming period? — In the following weeks, we will have a few activities which are very interesting for high school graduates and our students. There is a competition for students and high school graduates called Lex Libertas where the competitors are supposed to write an essay. The best three essays in both categories will be awarded. We are also very excited about the annual oratory competition which has been held at our Faculty of Commerce and Judiciary for more than a decade. In late May, we are going to have a final event and award ceremony for the FILMić national short film competition at the Fac-

ulty of Economics and Engineering Management. Besides competitions, we also hold a vast number of specialized courses for our students, alumni and third parties that are interested in expanding and upgrading their knowledge. For the next school year, we are planning to have very interesting guest lecturers, because our plans for the past two years were disrupted by the pandemic. So, for the next year, we hope that we can realize all the events that were disrupted and add some new top-

ed. The knowledge they acquire through studying enables the students to find a job and develop a career. Of course, not everything can be learned in college, nor can students be educated at once, for a lifetime. Science and technology will develop and no one can be trained during their studies for the next forty years. Students receive the basic fund of knowledge they need to get involved in the work process. The programs are focused on the needs and the demand of the market, and the

WE HAVE BUILT MANY BRIDGES AND WE HAVE ADHERED TO PRINCIPLES FROM WHICH WE DO NOT GIVE UP FROM DAY ONE, SO WE ARE FOLLOWING THE KNOWN PATTERNS WHICH HAVE PROVEN TO LEAD TO SUCCESS ics that emerged as very interesting for our students and the general public. The university manages to keep up with all the changes and challenges associated with higher education in European countries. What does this mean for the University's students? — The study programs at the University Business Academy are modernly conceived and I think that they provide every student who completes them with enough knowledge to engage in the activity for which they were educat-

learning system is such that students learn "how to learn" in the coming years and decades and constantly innovate their knowledge following the requirements of time and market. Thinking that once acquired knowledge at the faculty will always be relevant is a great delusion, and our professors will certainly not deceive our current or future students - on the contrary, they will reveal the magnificent beauty of lifelong learning and provide tools to guide students through learning. You are dealing with new challenges and growth opportunities

face on. What are your plans? — We have built many bridges and we have been adhering to principles which we held onto from day one – that is following the familiar patterns which have proven to lead to success. We do not compare ourselves with others; we are competing with ourselves. We try as much as possible to develop and get involved in domestic and international educational trends, give as much as possible to our students and be a quality partner and representative of higher education. The University Business Academy is one of the few such institutions in the country that has not experienced a decline in the interest shown by new students. This is due to the continuous effort invested by all our employees into contributing to the University’s growth and development, both domestically and internationally, to use every opportunity for progress and steer clear of repeating the same mistakes. We are highlighting new goals and creating new dimensions as evidenced in our University’s motto - "Satisfied desires are not a motive enough!" The University Business Academy is constantly leading the way. For us, stagnation isn’t an option in any field or at any time. We plan to develop and progress at an even faster pace than we did in the past because we know that we can do that in the future too. www.privrednaakademija.edu.rs

CONFERENCE

The National Climate and Energy Plan is Being Drafted he conference titled "Serbian-American Relations: Energy Diversification Strategy", organized by the Serbian-American Friendship Congress (SAFC) and Color Media Communications, was held on May 12, 2022, at the House of the Serbian National Assembly. The conference was opened by Ivica Dačić, Speaker of the National Assembly of the Republic of Serbia, who said on the occasion: "We, in Serbia, have long been engaged in the diversification of energy sources, which is one of the state and economic priorities. In this regard, we are very active in all international forums. The Republic of Serbia is a proactive participant in the global effort to reduce greenhouse gas emissions. We have undertaken to reduce emissions of harmful gases to zero by 2050 and we are working on that. " Aside from Ivica Dačić, Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy Zorana Mihajlović, the US Ambassador to Serbia, H.E. Christopher Hill, the Israeli Ambassador to Serbia, H.E. Yahel Villan, the Deputy Assistant Secretary in the Bureau of Energy Resources of the State Department, Laura Lockman, and MP and founder of the SAFC, Vladimir Marinković, also spoke at the conference. The Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy, Zorana Mihajlović, pointed out that a great task awaits Serbia, namely the drafting of "the National Climate and Energy Plan which will show how we see se-

H.E. Christopher Hill, Zorana Mihajlović, Ivica Dačić, Vladimir Marinković, H.E. Yahel Villan and Robert Čoban

curity and stability in the decades ahead”. Ms Mihajlović also said that she was confident that the new government would approve of the Plan. She also pointed out that at least 40% of the gas Serbia procures must come from another supplier for the country to have a stable energy supply. “We import 90% of gas and that must change. To have real e energy safety, Serbia must build more interconnectors leading to all the country’s neighbours, in addition to the one with Bulgaria, which we will complete in September next year, in order to expand the network of potential suppliers. We must turn to renewable energy sources and increase the production of clean energy because Serbia should be a country that can attract green investments,” concluded Ms Mihajlović. The US Ambassador to Serbia, H.E. Christopher Hill, stated that sovereignty in the energy

H.E. Christopher Hill, Zorana Mihajlović, Vladimir Marinković and H.E. Yahel Villan

sector is very important and will play a central role in the economic development of each country. "The current situation has accelerated the process in which Serbia must diversify its energy sources as soon as possible, and the United States is its partner in that," the Ambassador added. The Israeli Ambassador to Serbia, H.E. Yahel Villan, pointed out that Israel and Serbia have been having strong cooperation in the energy sector in the last few years, adding there is a lot of room for boosting the cooperation. Mr Villan added the two countries have recently signed a renewable energy sources agreement. The Deputy Assistant Secretary in the Bureau of Energy Resources of the State Department, Laura Lockman, stated that the Biden administration has made it clear that one of its primary goals is to promote European energy security through meeting the climate goals we all already share.” The way we do this is by insisting

on the benefits of energy diversification, expanding the network of suppliers and implementing new ways of obtaining energy,” she said. The SAFC’s founder, Vladimir Marinković, pointed out that Serbia is ready to work with the United States, the European Union and other countries, such as Israel, on energy diversification, common values concerning not only economic freedoms, but also human freedoms, rights, democratic capacities, regional integration and the implementation of various initiatives, such as the Open Balkans, which aim to make Serbia’s future in Europe more certain and better. The conference was moderated by Robert Čoban, President of Color Press Group, who stated at the outset that "Color Press Group held a number of conferences dedicate to energy topics in 2015 and 2016, and at one of them, the then US Embassy’s Economic Attaché, Anna Boulos, said that Serbia must work on the energy security and that that could be the country’s Achilles' heel. “Looking at the current situation and the changed geopolitical circumstances, we see how much we still have to deal with this topic," she said on the occasion. The topic of the energy diversification strategy, both in the world and in our country, is exceptionally important for energy stability, which is a prerequisite for the normal functioning of all countries.

CLICK TO GO  www.diplomacyandcommerce.rs

E-COMMERCE IN SERBIA 2022

READ THIS ON WEB

INTERVIEW

by Tanja Banković

NEW MODELS FOR NEW TIMES

The Tax Administration has been given a modern and powerful tool, which enables a more advanced risk analysis, where inspectors, without having to perform field inspections, have real-time insight into the activities at each point of sale DRAGANA MARKOVIĆ Director of the Tax Administration of the Republic of Serbia

t the beginning of her fiveyear mandate, Dragana Marković, Director of the Tax Administration of the Republic of Serbia, said that the implementation of comprehensive reform in the Tax Administration will be her absolute priority. Reforms and changes continued also through the implementation of the e-fiscalization model. This model is certainly the latest of its kind and it was preceded by the transition to new cash registers. At the same time, the Tax Administration warned of large fines if companies and small businesses failed to switch to the new model. The transition period is demanding and comprehensive. One of the main advantages of this model is that the business will be more economical and safer. In this interview, Ms Marković also spoke about the process of adjustment, control and collection of taxes, but also about the priorities of the Tax Administration in the coming period.

When it comes to e-fiscalization, the transitional period for businesses to adjust to this new model started on November 1st, 2021 and ended on April 30th, 2022. How did the process go and what were the biggest challenges associated with it? — By introducing e-fiscalization, a project of strategic importance for the Tax Administration, we, as a society, have made a step forward in fighting against the shadow economy and contributed to the better organization of the local community

through compliance with regulations. All the Tax Administration's resources have been engaged for months in order to implement this extremely important project successfully and on time. A quality support system for taxpayers has been established and technical support has been provided to all participants in the process of applying the new fiscalization model.

Both the Tax Administration's inspectors and shoppers can check the validity of the cash register receipt immediately after being handed over the receipt

In addition to better control and collection of taxes, will e-fiscalization also bring other benefits? — Thanks to the new fiscalization model, the Tax Administration now has real-time data on the turnover that businesses have and these data are comparable in terms of the territory and industry, as well as in terms of the time of their issuance. Plus, we also have an insight into the average turnover. It is possible to easily compare the recorded turnover with the cash register receipts that the taxpayer has issued. The influx of data from fiscal cash registers ensures better risk analysis and easier detection of irregularities in the business of our taxpayers, but also it creates new ways to control the is-

suance of cash register receipts because the validity of these receipts can be checked by simply scanning the QR code on them. Both the Tax Administration's inspectors and shoppers can check the validity of the cash register receipt immediately after being handed over the receipt. On the other hand, thanks to e-fiscalization, taxpayers now have lower operating costs because the new model does require that cash registers should have two receipt rolls and the mandatory annual technical service. Also, GPRS and fiscal modules become unnecessary. The fiscalization process is simple.

To what extent will this new model, which introduces additional fiscal discipline, contribute to the fight against the shadow economy in all sectors — The information on cash register receipts issued according to the new fiscalization model are merged in real-time at the Control Centre and are clearly visible to the Tax Administration. By processing the received data and applying analytical models of risk analysis, prerequisites for effi-

CLICK TO GO  www.diplomacyandcommerce.rs

cient monitoring and control of taxpayers who are prone to tax evasion have been met. At the same time, law-abiding taxpayers are spared unnecessary controls. In the Control Centre, with the help of large LED monitors, information about all businesses that use fiscal cash registers under the new fiscalization system is displayed in one place. This overview contains the smallest details, i.e. information generated in individual districts, cities, towns and streets and the exact location where taxpayers perform their registered business activity. The Tax Administration has been given a modern and powerful tool, which enables a more advanced risk analysis, where inspectors, without having to perform field inspections, have real-time insight into the activities at each point of sale. Now, they can conduct targetted controls of taxpayers that are prone to tax evasion. In this way, we are continuing to fight against the shadow economy, as the new fiscalization model is a key lever in the fight against the shadow economy, which is damaging to all - the state, businesses and citizens alike. The new fiscalization model strongly facilitates operations of the entire economy and helps in the fight against unfair competition.

Where can individuals and companies find more information about all the segments, steps and advantages of e-fiscalization? — The Tax Administration's official website - www.purs.gov.rs - contains all the necessary information on the new fiscalization model, including a list of models of fiscal cash registers approved for use in the Republic of Serbia. Taxpayers can get the required information about e-fiscalization by calling the Tax Administration's Contact Centre (phone numbers 0700 700 007 and 011 331 01 11), or by sending an email to budiefiskalizovan@purs.gov.rs . Also, taxpayers can get information by going to specialized counters marked as 'Vaš Poreznik', which are located in all 37 branches of the Tax Administration and where taxpayers can directly communicate with tax clerks to obtain all the necessary information. The Vaš Poreznik counters also have so-called Internet kiosks, where tax clerks will help taxpayers to file their tax returns online. Tax administration officers also work on holidays, in order to help taxpayers to obtain a new fiscal cash register, if they haven't done so already, and take over the secu-

rity element. In that way, taxpayers will avoid legal sanctions, fines and misdemeanour charges, as well as eliminate the risk of their business being closed down due to non-compliance.

What have the amendments to the Law on Fiscalization brought Serbia in general, and what improvements do you expect to see? — The fact that we received over five million fiscal cash register receipts generated by the new fiscal devices daily, before the deadline for the full implementation of the law expired, made us quite happy and has shown us that we are on the right path to establishing an effective control system. With the new Control Centre and all its resources, the Tax Administration is fully engaged and completely ready to cover the entire territory of Serbia and all taxpayers. We would also like to remind taxpayers that the full implementation of the Law on Fiscalization implies the mandatory issuance of a fiscal cash register receipt with all the prescribed elements, containing a recognizable QR code, began on May 1, 2022. Taxpayers who do not comply with these legal regulations and do not issue valid fiscal cash register receipts after the set deadline will be sanctioned following the provisions of the Law on Fiscalization.

What are the Tax Administration's priorities that you will work on in the coming period? — The Tax Administration's primary task and priority are to collect public revenues, improve fiscal discipline and create a business environment so that each taxpayer voluntarily, at affordable costs, can fulfil their tax obligations, which then makes it possible for the state to finance public services used by all people in Serbia. We strive to constantly improve our business, developing our own and applying the best international experiences in our practice. We have also adopted a new 2021-2025 transformation programme, which stipulates three strategic goals for the Tax Administration. The first is to create new business processes and find an adequate information platform that will enable simpler and more efficient work, the second is to improve the quality of services we provide to all taxpayers and the third goal is to create a profile of a new tax officer who is known for their high-level professionalism and competence. The purpose of our reform processes, which are currently in their expansion phase, is to trail the road that leads to achieving our ultimate goal – transforming the Republic of Serbia's Tax Administration into a modern and efficient tax body, which facilitates sustainable and predictable public finances. 

With the new Control Centre and all its resources, the Tax Administration is fully engaged and completely ready to cover the entire territory of Serbia and all taxpayers

READ THIS ON WEB

WORLDWIDE

E-COMMERCE WORLDWIDE

In 2022 so far, China has generated revenue of 1.535 trillion USD. The United States occupies second place by generating half of China’s revenue - 875 trillion USD -commerce (electronic commerce) is the activity of electronically buying or selling products via online services or the Internet. E-commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange, inventory management systems, and automated data collection systems. E-commerce is in turn driven by the technological advances of the semiconductor industry and is the largest sector of the electronics industry. There are three areas of e-commerce: online retailing, electronic markets, and online auctions. E-commerce is supported by electronic business. The existence value of e-commerce is to allow consumers to shop and pay online, saving custom-

ers and companies time and space, while greatly improving transaction efficiency, especially for busy office workers. Contemporary electronic commerce can be classified into two categories. The first category is business based on types of goods sold (involves everything from ordering "digital" content for immediate online consumption to ordering conventional goods and services to "meta" services to facilitate other types of electronic commerce). The second category is based on the nature of the participant (B2B – Business to business, B2C - Business-to-consumer, C2B – Consumer to business and C2C - Consumer-to-consumer). At the institutional level, big corporations and financial institutions use the Internet to exchange financial data to facilitate domestic and

E-commerce retail sales show that COVID-19 has had a significant impact on them and they are expected to reach $6.5 trillion by 2023

international business. Data integrity and security are pressing issues for electronic commerce. In March 2020, global retail website traffic hit 14.3 billion visits signifying an unprecedented growth of e-commerce during the lockdown of 2020. Later studies show that online sales increased by 25% and online grocery shopping increased by over 100% during the crisis in the United States. Meanwhile, as many as 29% of surveyed shoppers state that they will never go back to shopping in person again; in the UK, 43% of consumers state that they expect to keep on shopping the same way even after the lockdown is over. E-commerce retail sales show that COVID-19 has had a significant impact on them and they are expected to reach $6.5 trillion by 2023. What’s the current situation in the world like? According to the data published by the Statisticians website, in 2022 so far, China has generated revenue of 1.535 trillion USD. The United States occupies second place by generating a half of China’s revenue - 875 trillion USD, followed by Japan, Germany, the UK, South Korea, India, France, Indonesia and Canada (59 million USD). 

CLICK TO GO  www.diplomacyandcommerce.rs

READ THIS ON WEB

CORPORATE

YOU CAN ONLY DISAPPOINT ONCE ON THE INTERNET

Our e-commerce is powered by the most prestigious platform solutions, namely SAP and Salesforce. I think that we are currently the only company in Serbia that is implementing both solutions at the same time MIHAILO PONJAVIĆ E-Commerce Director, Tehnomanija

CLICK ON ICON 

WEBSITE

tronics, and that leadership has been built for 23 years. Customer needs have changed. To meet these needs and offer the same quality of the user experience both online and offline, we have created a real and unique omni-channel environment for our customers. With such a clear goal of improving business, we are undergoing the process of complete digital transformation, which is supported by our comprehensive investment cycle.

etail is experiencing the biggest changes in its history. According to Mihailo Ponjavić, E-Commerce Director of Tehnomanija, this is primarily due to the accelerated technological development and customers’ needs from which it all originated. Mr Ponjavić explains that when shopping online, the seller can disappoint the buyer only once and that’s it - there are no more chances given and a new seller will jump in the old one’s place at the speed of light.

Do you think that e-commerce experienced a revolution of sorts during the pandemic? — E-commerce has experienced a revolution in Serbia since the emergence of Aliexpress. In fact, the revolution happened when we started paying with cards for something that costs only $2 and when we overcame the fear of online payments and data theft. The pandemic has been an obvious global accelerator of development, pushing e-commerce development three years ahead of time, and expanding the range of goods and services we started buying online. How did this acceleration affect Tehnomanija? — Tehnomanija is a market leader in technology and consumer elec-

We are undergoing the process of complete digital transformation, which is supported by our comprehensive investments in IT and logistics infrastructure

They say that e-commerce rests on two pillars - the choice that it gives the customer and on trust. How do technological solutions contribute to that? — Full data- driven automation is the goal of e-commerce. We have, figuratively speaking, parked ‘Lamborghinis’ and ‘Ferraris’ in our business, and in addition, we have people who know how to ‘drive’ them. Platforms that will improve our e-commerce are the world's best solutions - SAP and Salesforce. SAP is one of the most recognized infrastructure solutions in retail, and Salesforce is the world's best CRM (Customer Relationship Management) platform focused on marketing automation. I think that, at the moment, we are the only company in Serbia that implements both solutions at the same time. We are doing all of this with one goal in mind - our customer has to have a great and unique user experience based on which they will be happy to recommend us to others and actively represent us in the community. What exactly do you mean by "unique user experience"? — This means that the user must

have a ‘silky smooth’ experience which exactly corresponds to what the consumer came in for and in the way they imagined it. In e-commerce, there is no charming, well-informed and sweet-spoken seller who will convince you to buy something and that is why it is important to offer the user as many choices as possible at every point of sale - from assortment selection, through payment model selection, to place and delivery time. On the other hand, the user wants the purchase process to be simple and easy. Accordingly, on both Tehnomanija and WinWin websites, you can purchase with just one touch on your smartphone screen, without having to input payment card information.

What is the biggest challenge for e-commerce at the moment in the local market? — Currently, the entire Serbian market is suffering because customers have become distrustful regarding delivery and distribution. At Tehnomanija, we are focusing on our own solutions. Our goal is to combine offer, service and delivery in one package. What is your biggest advantage over the competition? — First and foremost, our biggest advantage is our fantastic employees who have a lot of energy and knowledge. During my 22-year-long career, I have never worked in an environment that has a denser concentration of experts than this one. On the other hand, there is the technology as the second advantage. With our team and technology we use, we are a light year ahead of the competition. 

FACEBOOK

YOUTUBE

INSTAGRAM

READ THIS ON WEB

INTERVIEW

WE WILL CONTINUE TO EDUCATE THE ENTIRE DIGITAL ECOSYSTEM

It has been proven that education is the best way to positively influence market development. Business owners and key decision-makers must understand digital channels and start thinking about building their future through them ZORANA MILIDRAG President of the E-Commerce Association of Serbia

fice have not succeeded in developing this sales channel.

he expansion of e-commerce has been exponential. We have talked with the President of the E-Commerce Association of Serbia, Zorana Milidrag, about the growth of e-commerce in Serbia, how suitable it is for all industries and sectors, the Association’s fourth anniversary and its plans and goals.

The pandemic has caused enormous growth in e-commerce in Serbia. What is the situation now when the pandemic is subsiding? Is e-commerce still on its upwards trajectory or stagnating? — In terms of changing customer awareness, the pandemic has managed to do more for the development of the digital economy in a year than the entire community has done in over five years. It is a positive development that the public, business and non-governmental sectors have also worked on their development and now that the customer is ready, the result is that we are seeing an expansion that has not stopped despite the pandemic subsiding. Every company that has created a good offer for its customers and all e-commerce services are still recording a continuous growth, two years after the start of the pandemic. There is also a segment of new retailers in the digital ecosystem who are also impacting the overall growth and development of the digital economy. I would like to say that e-commerce is not just the opening of a webshop. Those retailers who thought that that would suf-

Companies adapting to digital transformation is the biggest challenge in the development of e-commerce

Which sectors have recorded the biggest e-commerce growth? Generally speaking, is e-commerce suitable for all industries and sectors? — E-commerce is suitable for all industries and sectors, as long as they find a way to offer their customers/ clients superior service and they can feel the benefits of online shopping. If not, e-retail, as the safest segment of e-commerce, will not work for them. We have noticed that those companies/organizations who are going through digital transformation and have dedicated themselves to this process because they see it as necessary for further development, have recorded the biggest growth. As e-retailers were among the first to set up a digital ecosystem, they also experienced the greatest expansion. In recent years, new marketplaces have emerged, which are facilitating the expansion of e-commerce, and in addition to setting higher standards, they are a great opportunity for everybody who has not managed to set up their own e-commerce business as yet. Q-commerce applications, or food delivery apps, are another segment of e-commerce that has transformed the way we function. Actually, they are much more than that because they are moving in the direction of the development of horizontal supply and expediting last-mile delivery as we know it.

How well are people and companies adjusting to e-commerce? Does e-commerce require workers to develop new skills? — Companies adapting to digital transformation is the biggest challenge in the development of e-commerce. It is a common misconception that this requires a change in technological tools, when in fact, it is a change in employee consciousness and skills, a change in the company's work process and the pursuit of greater efficiency. In this sense, the most important thing is to have the right leaders who will devise and implement quality change management. When you have the right leader, employees adapt better to change because they get the right understanding of the essence of that change. There are increasingly fewer people who are ready to educate themselves, solve problems creatively and approach change in an agile manner. And there lies the future! E-commerce is not nuclear physics and just like every novelty, it has its own principles which are teaching tools and of course, there is practice. The Association is celebrating its fourth anniversary this year. How successful has the Association been in accomplishing the goals related to improving the digital ecosystem in Serbia? — We are very proud of the work and development of the E-Commerce Association of Serbia because has managed to become a self-sustainable,

CLICK TO GO  www.diplomacyandcommerce.rs

non-profit organization and has preserved its independence and integrity. We are here to primarily help our members, to create a better environment for their development and help them in all areas where they need development assistance. Additionally, we are fighting for the development of the entire e-commerce market, as we have demonstrated by representing the participants in the digital ecosystem who are not our members and giving out our annual awards to the best of them, irrespective of them being our members or not. The E-Commerce Association’s Board of Directors consists of top experts from various segments of e-commerce who use all their resources and great energy to help achieve the Association’s goals. Our main goal is to create a favourable climate and prerequisites for business development. We have good partners in the public sector and non-governmental organizations and above all the media, which gives us additional wind in our sails to continue our fight. In the last four years, we have managed to help change laws, transfer the concept of e-commerce from the technological segment to business, form a stable operational and management team, led by the Association’s CEO, Marija Pasuljević, and build customer trust in the safety of online shopping.

What are the biggest challenges for the further development of e-commerce? — The biggest challenge for the development of e-commerce in Serbia is the size of our market and that is why we need to focus on developing e-commerce outside the borders of Serbia too. Given that we belong to the CEFTA region and that companies from Serbia and the physical world are developing their business in this region, it is realistic to expect that e-commerce should expand in this area with the ultimate goal being doing business worldwide. I worked on a project mapping geoblocking practices in the CEFTA region together with the E-Commerce Association of North Macedonia and it turned out that the biggest challenges are customs procedures and costs, followed by logistics. If we want to strive for the development of e-commerce in its full capacity, we will have to continue working on removing mapped barriers and enabling the uninterrupted movement of goods and services in this region. The essence of e-commerce profitability lies in ac-

cess to the unlimited market and if we overcome this challenge, e-commerce traders from Serbia will fully comprehend the true potential of digital business. This project must be implemented by the governmental and non-governmental sectors together because it will benefit both of them and consumers too.

What is the current situation with the regulation of this area, i.e. how far have we come in that, and what else needs to be done to make the market as functional as possible? — The Law on Electronic Commerce, which was passed in 2019, stipulates the general provisions necessary for the smooth functioning of business and was a good prelude to the growth that awaited us in 2020. The changes that await us now are stipulated in the new Law on Fiscalization. Given that e-commerce involves several forms of business such as e-retail, marketplace, dropshipping and pureplayer, we expect many challenges to emerge in drafting the Law on Electronic Commerce and its application. The E-Commerce Association has cooperated with the Ministry of Finance on drafting this law and the Ministry was very understanding about the objections they received from the business sector. I expect that this cooperation will continue when we see what needs to be adjusted in the law. There is also a whole segment of unregulated shopping on social networks. In addition to this segment adversely affecting vendors who operate legally and has a negative impact on the state budget, it is also

unfavourable to vendors in the long run who sell exclusively on social media. It is a matter of days before the Facebook algorithm will independently block such pages in our region. In that way, these vendors will not only their sales channel in a moment but also all the customer base they have been building for years. The goal is for all those people who do business in this way to understand, first and foremost, the damage they can sustain because it is very challenging to regulate this area with the help of inspectors. That is why it is important for both the Ministry and the E-Commerce Association of Serbia to educate them and even more importantly, for the media to show their support for this.

What are the E-Commerce Association’s goals and plans? — The E-Commerce Association of Serbia will continue to educate the entire digital ecosystem with a special emphasis on issues such as fiscalization, which is a current topic this year. We support the entire community when it comes to improving the conditions for facilitating digital business development. Furthermore, we are focusing on holding a large-scale e-commerce conference and giving out our annual awards for the best in digital business. It has been proven that education is the best way to positively influence market development. It has been proven that education is the best way to positively influence market development. Business owners and key decision-makers must understand digital channels and start thinking about building their future through them. 

Our main goal is to create a favourable climate and prerequisites for business development

READ THIS ON WEB

E-COMMERCE SERBIA

GROWTH OF E-COMMERCE IN SERBIA

Since the onset of the pandemic, the world has massively embarked on online shopping, and that trend has continued to this day. Furthermore, the number of online shoppers has been growing day on day. This was corroborated by the National Bank of Serbia in its e-commerce in Serbia report he traditional way of shopping where a shopper physically goes to the store, tries out what they are going to buy and drives there and back home is increasingly being replaced by shopping from home, or so-called online shopping. Due to greater opportunities offered by online shopping which did not exist before and to such an extent, consumers are now buying the desired products in droves by few clicks of a computer mouse or using their smartphones. Data show that in the last two years (2020/21), more than 30 million online transactions, paid by cards, took place. After a huge increase, recorded by the NBS,

Data show that in the last two years (2020/21), more than 30 million online transactions, paid by cards, took place

that number continues to grow. Also, an increasing number of vendors are opting for selling their products online. The value of online shopping is astonishing. In 2020, it amounted to over 450 million euros, while in 2021, it recorded a huge growth and stood at 797 million euros. The average value of one purchase last year was 48.22 euros, although the number of orders paid in dinars was higher than in other currencies. The pandemic has changed a lot, including people’s habits, as well as boosted trust in online shopping, i.e. in safe transactions. In Serbia, shoppers usually shop online at domestic stores. According to MasterIndex’s data, the highest number of online transactions is related to paying bills online. Buying clothes and shoes come in second place, followed by sporting goods, household items, electronic devices and books. Groceries occupy the 7th place. It is interesting to note that the last two places are infamously occupied by subscriptions and training courses& education. Even when it comes to smaller businesses, a large number of them are moving their business online, as a result of digitalization, but also the needs of their customers. By switching to the digital option, they are boosting the competition in online

business as well. Consumer protection is one of the increasingly important segments of e-commerce, as are system solutions that will include the civil sector, consumer protection associations and companies and local governments. The Serbian Ministry of Trade is involved in this process, so last year, the Law on Consumer Protection was passed, which created the basis for further improvements in the functioning of the online business in Serbia. E-commerce in Serbia is growing without a doubt and it is expected to become even better and safer. Shopping online creates a completely new experience for consumers and provides an opportunity to quickly and easily have access to products and services, compare prices from various vendors, find discounts and save money and time. When online shoppers buy from legal online vendors registered in Serbia, they enjoy all the rights stemming from the laws of the Republic of Serbia. People who use online shopping say that saving time is the main advantage of such a kind of shopping. They also mention a time-saving price comparison as another advantage, as well as home delivery and a wider selection of products and services. 

CLICK TO GO  www.diplomacyandcommerce.rs

Mining & Energy D I P L OM AC Y

C OM M E RC E

FOCUS ON

2022

P R E S E N T S

MINING & ENERGY

READ THIS ON WEB

Focus on Energy Efficiency and Green Energy Investing in boosting energy efficiency and developing renewable energy sources must be a priority if we want Serbia to have a safe energy supply and be energy independent in the coming decades

erbia has been diligently working on implementing the Green Agenda. In her interview, Professor Zorana Mihajlović, PhD, Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy, talks about energy security, renewable energy sources (RES), energy efficiency in Serbia and diversification of energy-supply routes.

In Prague, you stated that energy security and independence are priorities for all countries. How is Serbia standing on this issue? — Energy security is currently the number one topic in the world, as a lack of energy security leads to lax national security and hinders economic development. This is especially visible in crises, which bring to the forefront all existing weaknesses and issues that have been pushed under the carpet, so to speak. It is a great pity that energy was managed by the ministry that was ‘dormant’ in previous years and that many of these things were not initiated much earlier. If that happened, today we would have a different situation relating to the diversification of natural gas supply and the power grid. The Niš-Dimitrovgrad gas pipeline project has been talked about for the past 10 years, and it should have been built even before the current Ministry was formed. And yet, the work on this pipeline, started this year. Also, no new power plants have been built in Ser-

SPECIAL EDITION

bia for over 30 years, and in previous years. The construction should have been much faster and a lot more should have been invested in the overhaul. Results don’t appear out of nowhere but come from hard work, effort and dedication. This is how the previous ministry has been working and thanks to that, after almost 30 years, Corridor 10 was finally completed, the Miloš Veliki motorway was built and commissioned and the Belgrade-Budapest high-speed railway project was launched. Also, we now have three international airports in Serbia. I believe that similar results can be achieved in the energy sector too because we have already laid the foundation for a completely different energy sector in the past year and a half, thanks to a new legislative framework, a new investment plan and the fact that we started drafting strategic documents.

Has Serbia already taken the first steps by creating a new legislative framework last year, especially when it comes to the use of RES and energy efficiency? — During this Ministry’s term, the authorities have passed a set of new, contemporary laws regulating the energy sector, including the first special Law on the Use of Renewable Energy Sources, a new Law on Energy Efficiency and Rational Use of Energy, and amendments to the Energy Law. Based on these changes, Serbia has been actively involved

I N T E RV I E W

Professor ZORANA MIHAJLOVIĆ, PhD Deputy Prime Minister of the Republic of Serbia and Minister of Mining and Energy

Serbia has been actively involved in the green energy transition, not only as a state but also through citizen participation

in the green energy transition, not only as a state but also through citizen participation. A national programme to increase energy efficiency in households has been launched too, where together with local governments, we have provided financial support to people who wish to replace doors and windows in their houses, improve insulation, and replace boilers with more energy-efficient ones. The option of buyer-producer is also stipulated in the new Law on the Use of Renewable Energy Resources, whereby individuals can produce electricity for their own needs by installing solar panels, with the help of subsidies, and through joint action with towns and municipalities. Investing in boosting energy efficiency and developing renewable energy sources must be a priority if we want Serbia to have a safe energy supply and be energy independent in the coming decades. Under the auspices of the energy transition, our task is to provide a different structure of the energy mix, which will ensure that we have enough energy for development and a healthy environment. We will be embarking on a gradual

exit from so-called dirty technologies in the next few decades, and at the same time, we are going to build new energy capacities much faster, primarily reversible hydropower plants and RES, while providing enough base energy for the stability of the power system.

er suppliers. With the completion of the new gas pipeline next year, we will be able to get the gas from the Caspian region to Serbia and gas from the LPG terminal in Alexandroupolis, as well as gas from the future sources, such as the East Med pipeline.

How far have we come in the process of drafting an integrated climate and energy plan and new energy development strategies? — For the first time, one document - the Integrated Climate and Energy Plan – contains goals that include increasing energy efficiency, increasing the share of RES in total energy produced and reducing greenhouse gas emissions. With this document, which will be harmonized with the new energy development strategy, we will adjust our goals to the relevant UN conventions and EU and Energy Community policies, and be part of global efforts in the fight against climate change. But more importantly, we are pledging to present and future generations that we will do everything that is required for Serbia to be a country that has enough energy for its citizens and businesses while preserving and improving the environment. On the back of a number of proposed scenarios, the working group that is engaged in writing this document has so far come up with six working scenarios that do not include nuclear energy, five working scenarios with nuclear energy and one scenario that has goals equal to those in the EU. The Group has also analyzed how to ensure our energy security, primarily through greater participation of RES in energy production. We will put these scenarios up for a public discussion to hear the proposals and suggestions from everyone – the business sector, universities, civil society and citizens.

What is the current situation in Serbia in terms of energy stability? — Serbia has sufficient quantities of electricity, heat, gas and other energy sources to supply the domestic market. On the one hand, we have ensured a secure and stable supply, and on the other, measures have been implemented to mitigate the consequences of rising global prices on both our com-

The diversification of both supply routes and suppliers has been initiated in the gas sector. What benefits will Serbia gain because of that? — Only a year and a half ago, Serbia got gas from only one direction, that is Hungary, which made our country extremely vulnerable in case of any disturbances. Today, we have the Balkan Stream gas pipeline, which ensures a diverse gas supply, and we have started the construction of a new Niš-Dimitrovgrad gas interconnection, which will enable the country to receive gas from oth-

panies and citizens. The energy crisis is a global one and we don’t have a great influence on it. What we can do and are working on is to expedite investments in new capacities, primarily in the power industry and to prepare for all options. In the cases where we are import-dependent, we need to work on increasing gas, crude oil and crude oil derivatives reserves, to be ready to deal with possible disruptions.

Which country in the world is currently a world leader in energy diversification and a role model? — Serbia became more actively involved in the energy transition pro-

cess last year. Although it is not a good thing that we have started this process later than we should have, it allows us to use the experiences of all those countries which are ahead of us in this process. In addition to exchanging experiences with everyone from whom we can learn something, we need to be open to every country that is interested in cooperation in project implementation, and this is always one of the topics in meetings with ministers from other countries.

What are the current prospects for solving problems in Europe and the world, in the light of the Ukrainian crisis? — It is certain that after the crisis in Ukraine subsidies, nothing will be the same in Europe and the world, and that there will be consequences for both political relations and the economy. We have managed to preserve energy stability throughout this crisis, but we must reckon with the fact that there will still be challenges and that we must be ready for them. This means that we must be much more efficient, especially in investments, but also in introducing changes that are necessary for the functioning of our energy system. In crises, you pay a high price for everything that you have not done on time, and energy is the most expensive when you don’t have enough of it.

Measures have been implemented to mitigate the consequences of rising global prices on both our companies and citizens

What are regional relations like at the moment and what are further plans for energy diversification in the Balkans? — In addition to the ongoing construction of the Niš-Dimitrovgrad gas pipeline, our goal is to link with gas interconnections in Romania, Bosnia and Herzegovina, Montenegro, Croatia and North Macedonia, as well as to work on increasing our country’s natural gas storage capacity. With the increase of obligatory reserves of crude oil derivatives, where we have already achieved significant progress, in this way, Serbia would substantially increase its own energy security, but also contribute to greater security of supply in the region. Furthermore, it is important to establish various mechanisms in the region to coordinate actions in the event of supply disruptions, including crisis planning. Regional connectivity is key to increasing our energy security, as well as fortifying our resilience to external shocks that we must count on if we want to be ready for them if they happen.

SPECIAL EDITION

MINING & ENERGY

READ THIS ON WEB

Energy Stability and Challenges Caused by the Global Crisis

Today, during the global energy crisis caused by the war in Ukraine and the problems with the delivery of Russian gas, coal has regained its importance, even in countries where coal-fired thermal power plants have been shut down COM M E N T

t is a well-known fact that the energy potential of our country depends on the exploitation and combustion of low-calorie coal that is mined in Kolubara and Kostolac, and that we get over 70% of electricity from our thermal capacities. In recent years, there has been a major campaign against coal as an energy source in favour of renewable energy sources. Such a campaign originates in the European Union, and the goal is to completely replace coal with other environmentally friendly sources. Numerous prerequisites have been put in front of Serbia, which is on the path to the EU accession. The fact is, however, that we do not have a suitable alternative in renewable sources, or not to an adequate extent that we can completely give up coal. The situation is such that Serbia's energy stability will depend on the exploitation of our lignite for a long time to come, which of course does not mean that the share of renewable sources should not increase year on year. Special emphasis should be placed on the fact that today, during the global energy crisis caused by the war in Ukraine and the problems with the delivery of Russian gas, coal has regained its importance, even in countries where coal-fired thermal power plants have been shut down. As a mining engineer, I will write about the raw material base and the problems in the exploitation of

SPECIAL EDITION

Dr MILINKO RADOSAVLJEVIĆ Mining engineer, Director of the Mining Institute

In the distant future, the exploitation of oil shale should also be considered, which can be a significant resource for the production of electricity and oil

coal, on which the efficiency of the thermal energy capacities in Serbia depends. What is the quality of coal that is mined in surface mines in Serbia and what can we expect in the long run? All our surface mines in the Kolubara and Kostolac basins share the same predicament the quality of coal is declining, but other parameters also vary, such as the increasing share of tailings, combustible sulfur content, ash content, etc. For example, in the case of the Tamnava Zapadno Polje surface mine, it's been projected that the average coal quality has a declining trend, so at the end of exploitation, the average ash content over 18.5% and calorific value (LCV-lower heating value) around and below 7 GJ/t are expected. The same applies to coal from PK Radljevo, where the average ash content is expected to increase to over 17.7% and the LCV to fall below 7 GJ/t in coal. All these facts inevitably impose the need for coal treatment before combustion in thermal power plants. In addition to intervening in the technology of surface exploitation, in terms of selective excavation, the application of coal homogenization is also required. Furthermore, there is a growing need for coal purification to improve the quality of coal delivered to thermal power plants. One of the important questions to consider is whether the quantities of coal that we are currently exploiting are sufficient to supply our ther-

mal power plants, especially when we take into account that the construction of the Kostolac B3 Thermal Power Plant with a capacity of 350 MW is underway. All these thermal energy capacities are planned based on lignite exploitation in the two aforementioned coal basins. Unfortunately, we are already facing insufficient quantities of quality coal, and even import is being considered. As for the alternative to the existing surface exploitation of lignite from the Kolubara and Kostolac coal basins, significant exploitation reserves of lignite have been determined in the Kovin basin, close to 200 million tonnes, so this deposit will probably be interesting to consider in the future. As far as underground coal mining is concerned, brown coal is interesting from the aspect of thermal energy raw materials, so the Soko and Štavalj deposits can be appealing given the significant reserves, but significant investments have to be made in the modernization of mines in this area in order to achieve the required capacity increase. In the distant future, the exploitation of oil shale should also be considered, which can be a significant resource for the production of electricity and crude oil. It has been estimated that the Aleksinac basin alone has geological reserves of about two billion tonnes, while there is a total of 4.5 billion tonnes of oil shale all over Serbia.

SUSTAINABLE MINING AND ENVIRONMENTAL PROTECTION - A POSITIVE EXAMPLE As an economic branch, mining has recently been criticized by various environmental and other movements and associations, now more than ever, and mining is generally marked as a major threat to the pollution of all environmental media. The question is what is our reality, but also what needs to be done for mining to become environmentally friendly, i.e. sustainable. Speaking of sustainable mining, whatever that means, we must reconcile the two sides - one is the real need as a prerequisite for modern living and that is the exploitation of minerals and the other is the increasingly developed awareness that we must preserve the environment for future generations. There is a lot to say about this and not everyone will ever agree or share a common view. As a mining engineer, I will always advocate and support the development of mining through new research and potential exploitation of mineral resources. I would not like to go into that in more detail, but I must underline that the state must play a greater role in the profit made by the exploitation of mineral resources and that this should be one of the key prerequisites when launching a new project. This is something that has to be known in advance, namely what financial effects and other benefits are expected, through the collection of all types of taxes, contributions, ore rents and paying out salaries, as well as through the participation of our companies in projects. Special attention should be paid to the best interests of local communities where the mines are located, as their support is very much needed. This is why the sustainability of the project is of great importance, in terms of environmentally acceptable negative impact on the environment. To achieve that, the latest exploitation technologies, processing of useful substances and safe disposal of mine tailings and mining waste must be applied. The protection of groundwater and waterways, the rational consumption of water resources, the protection of land and, of course, air quality all must be taken into account. Is that possible in practice? I think it is. Although we have a lot of bad examples around us, and there are probably more than we are not even aware of, I would like to cite an encourag-

This year, the 8th Balkan Congress will finally be held in Belgrade, organized by the Mining Institute, from September 28 to 30. The Congress was initially postponed due to the coronavirus pandemic

ing example from our recent practice. After several decades, today we have the opportunity to attend the opening of the copper and gold mine, which is incredibly important for this part of the world. I am happy to report that the Mining Institute also had its role in that because we inspected the mine's technical compliance during all three phases of the opening and exploitation of the Čukaru Peki deposit, that is the upper zone, down to 260m underground. This mine fulfilled all its legal obligations regarding environmental protection, and in some segments, it even went up and beyond. I will not go into the project details because it would take up too much time, but I will mention several good solutions such as the technology of filling the excavated pit space with paste backfill, where part of the tailings is returned to the excavated space, whereby the possibility of deformation and subsidence of the terrain on the surface is significantly reduced. Also, the treatment of wastewater is environmentally friendly, because wastewater is not discharged into waterways but is treated, purified into the water and returned to the technological cycle of preparation of mineral raw materials primarily. After purification, the residue in the form of neutralized sludge is pumped to the specially designated landfill or flotation tailings. All these facilities are built in line with the highest environmental standards, i.e. they are protected with a waterproof foil so that pollution of the surrounding soil and groundwater is prevented. In terms of treating purified water, I am primarily referring to the treatment of water taken from pyrite concentrate landfills, tailings landfills and drainage water from pyrite concentrate landfills (process wastewater) and the treatment of water extracted from underground mining facilities (mine wastewater). Of course, these are just some of the solutions that demonstrate the seriousness and determination in reducing the negative impacts to an acceptable level. I would also like to point out here, and this is strongly related to the sustainability of mining exploitation, is monitoring the impact and adequate reaction, through constant monitoring, but also regular inspections and mining and environmental inspections, so that the mine is operational at all times while adhering to all project measures. This is very important because we

are witnessing that, in practice, disturbances during mining exploitation are often ignored, which can significantly jeopardize the quality of all environmental media. Last but not least, I would like to point out that mining has no alternative, that the exploitation of mineral resources can contribute to the economic progress of the country, but also that all possible negative impacts on the environment should be seriously understood and considered, and that through the use of new technologies we can minimize these negative impacts. This is the true meaning of sustainable mining if we can call it that.

ACTIVITIES OF THE MINING INSTITUTE IN SERBIA'S MINING SECTOR The Mining Institute carries out its activities in line with market principles. The Institute has been utilizing its potential during its decades-long work (founded in 1960), depending on the needs of the mining economy. In addition to the Design Bureaus, the Institute has also developed its own accredited testing laboratories such as the Geomechanics Laboratory, the Environmental and Working Environment Protection Laboratory and the Solid Fuels Laboratory. These are several important projects and services that the Institute is currently working on – with the help of conceptual and construction projects, it provides solutions to the problem of external transport, including ash, slag and gypsum landfills for the Chinese company CMEK in the construction of Kostolac B3 Thermal Power Plant, carries out inspections of technical compliance of mining facilities at the Čukaru Peki Mine, is engaged in the Belgrade Subway project, conducts testing and calibration of automatic measuring systems in Serbian thermal power plants, measures emissions of pollutants, carries out coal quality testing, etc. This year, the 8th Balkan Congress will finally be held in Belgrade, organized by the Mining Institute, from September 28 to 30. The Congress was initially postponed due to the coronavirus pandemic. I would also like to mention the publishing activity of the Mining Institute. In addition to the magazine Rudarski Glasnik (The Mining Gazette), which is published regularly, the Institute has recently published a very important monograph, written by a group of authors, and called 'The Mineral Resources Complex of Kosovo and Metohija'.

SPECIAL EDITION

MINING & ENERGY

CLICK ON ICON 

READ THIS ON WEB

Mining is the Basis of Every Development

I think a lot of work is needed to popularize geology

C O R P O R AT E

DUŠAN SIMIĆ Founder and CEO of the Jantar Group

e spoke with Dušan Simić, founder and CEO of the Jantar Group, about the challenges that the company has been facing, the current situation in geology in Serbia and the future of geological exploration.

You have been at the helm of a leading private company in Serbia and the region in the segment of geology for 22 years. What challenges does the company face today? — The Jantar Group has been engaged in geological exploration since 2000, and our very beginning was very difficult due to the prevailing belief that private companies should not be engaged in geological operations. The first challenge was to convince investors that a private company can do business and provide the same if not better conditions than state-owned companies. The situation changed significantly with the arrival of the first foreign investors because they had extensive experience in working with private companies worldwide. Another big challenge is a recent one because geology as a discipline is anathematized by individuals and political groups. This creates big problems in the field and creates a bad image of our society. The biggest challenge is new mineral deposits which is a dream of every geologist engaged in this line of work. Considering the war in Eastern Europe and the energy crisis, what do you think about the current situation in Serbia in terms of exploration and sustainable use of geological resources? — There is great interest from domestic and foreign exploration and mining companies, especially for metalic minerals. The current political and military situation has certainly contributed to the higher demand and, rising metal prices on global stock exchang-

SPECIAL EDITION

es but has also instilled fear in investors. Some companies (especially smaller ones) are intimidated by the possible escalation of the conflict and the problems that would cause. It is important that large investors still show undiminished interest in investing in exploration. Sustainable use of mineral resources is a very broad topic, but I would like to underline that our laws, especially those regulating environmental protection, are very strict and harmonized with the EU's. Every exploration and exploitation of mineral resources must be strictly controlled at all stages (from exploration approvals and geological exploration to environmental impact studies and exploitation approvals, as well as exploitation itself). Inspection services need to do better, though.

Without geology and mining, there is no civilization as we know it The Jantar Group is a member of the Canadian-Serbian Business Association (CANSEE). What can Serbia learn from Canada, when it comes to geology? — The CANSEE has contributed a lot to improving the geology and mining segment in Serbia with its networking. Serbia can learn a lot from Canada, especially about the state's support for the mining industry. Serbian companies and geologists have learned greatly from their Canadian peers, about how the work is organised and the cooperation with local governments and people in the field. We should also mention environmental protection, where Serbian companies have made great progress by implementing the same standards as Canadian companies, following the laws of the Republic of Serbia which are harmonized with those in the EU. In the year 2000 and in cooperation with the Faculty of Mining and Geology, you held a round table discussion on the topic

"Geology – What to do next?". How would you reply to that question today? — This issue is very interesting, especially in the context of the current situation when, on the one hand, there is strong interest in geological exploration, especially metal, which has become more expensive lately, and on the other, there is great resistance from certain environmental organizations and interest groups. What to do next? Mining, as an economic branch, is the basis of every development. Everything we use in everyday life is a product of mining or is obtained with the help of a product of mining (tools). To be able to talk about mining at all, we must first do geological exploration to, find out what kind of mineral wealth we have. This is the basis for any further mining activities because mining can only exist where there is ore to mine. Much work is needed to popularize geology. Geological exploration is not a nightmare but our need. Maybe geology should be taught as a school subject again (it was abolished in the 1950s). The Faculty of Mining and Geology and numerous associations (the Serbian Geological Society, CANSEE, chambers, SITS, etc.) must have a much larger and more active role in bringing geology and mining closer to people who are not in this profession. One must especially react to various types of misinformation (malicious or caused by ignorance), which are increasingly disseminated today. So, I think a social consensus on geological exploration and mining is needed, with the involvement of all stakeholders – the state, investors, construction companies engaged in geological exploration and mining, institutions (faculties, departments), laboratories, local governments, various civil associations, environmental organizations (NGO sector) and interested individuals. It may not be a bad idea to organize a cluster to address these issues. We need to achieve a balance struck between mining and environmental protection, because without geology and mining, there is no civilization as we know it.

This is Epiroc

Our segments

Epiroc is a vital part of a sustainable society and a global productivity partner for mining and infrastructure customers.

Equipment & Service

With ground-breaking technology, we develop and provide innovative and safe equipment, such as drill rigs, rock excavation and construction equipment and tools for surface and underground applications. We also offer world-class service and other aftermarket support as well as solutions for automation, digitalization and electrification.

Equipment & Service provides equipment and solutions for rock drilling, mechanical rock excavation, rock reinforcement, loading and haulage, ventilation systems, exploration drilling, drilling equipment for water, energy, oil and gas. It also provides related parts and service and solutions for automation and interoperability.

Epiroc is based in Stockholm, Sweden, had revenues of SEK 36 billion in 2020, and has 14 000 passionate employees supporting and collaborating with customers in more than 150 countries. Learn more at www.epirocgroup.com. Surface equipment

Underground equipment

Parts and services

Automation and digital solutions

epi + roc epi in Greek at, close, upon

rocca in Latin rock

Tools & Attachments Epiroc is a 148-year old start-up. We have a strong heritage with proven expertise since 1873, while also having the benefits of being a young company. We have passionate employees in a decentralized organization, which enables quick decision making, benefitting both customers and results. Our name Epiroc comes from Greek and Latin roots meaning “at the rock” – epi, Greek for “at, close, or upon,” and roc, Latin for “rock.” It reflects our core business, our proximity to customers and the strength of our partnerships well. Epiroc was part of the Atlas Copco Group, founded in 1873, until June 18, 2018, when Epiroc was distributed to the shareholders of Atlas Copco and listed on Nasdaq Stockholm.

Tools & Attachments provides rock drilling tools and hydraulic attachments that are attached to machines and used mainly for drilling, demolition and recycling as well as rock excavation. It also provides related service and spare parts.

Rock drilling tools

United. Inspired

Epiroc Srbija a.d. Milutina Milankovića 23, 11070 Novi Beograd, Serbia Phone: +381 (0) 11 220 1645 E-mail: office.serbia@epiroc.com www.epiroc.com

Hydraulic attachment tools

MINING & ENERGY

High Professional Standards in Mining and Geology One of the important roles of the Chamber of Mining and Geological Engineers of Serbia is to elevate the mining and geological profession in Serbia to a higher level, which means adhering to high professional working standards in mining and geology 34

SPECIAL EDITION

READ THIS ON WEB

R E S OU RC E S

ining in Serbia has been developing since ancient times. The Illyrians, Celts and Thracians were also engaged in mining in this area. The expansion of mining in this part of the world began in the time of the Nemanjić dynasty, when the rulers brought miners from other countries, mostly Saxony. They were also engaged in mining in Kosovo and Metohija. There is a wide variety of metal and nonmetal ores in Serbia, in significant quantities. The most common is iron, chromium, manganese, molybdenum, cobalt, cadmium, copper, antimony, lead and zinc. The beginnings of mining in Serbia go back several thousand years. Traces of this ancient activity can be found, although quite rarely, in the ores of mercury, iron, copper and gold. In addition to the ancient times, mining in Roman times also

In addition to the ancient times, mining in Roman times also flourished in all our orebearing areas

flourished in all our ore-bearing areas, albeit, there is very little written information about the Roman mining in our region. We know much more about medieval mining and its scope is evidenced not only by traces of old mining and smelting works but also in various historic notes which clearly show that once, during the Middle Ages, extensive and technically advanced mining flourished in our region, more advanced than in many, at that time, more developed European countries. Mining was especially intensive in the medieval Serbian and Bosnian states in Novi Brdo Janjevo, Trepča, Kopaonik, Rogozna, Rudnik, Kratovo, Srebrnica, Kreševo, Fojnica, etc. The rich ores of silver-bearing lead and copper in Serbia, Central Bosnia and Macedonia gave rise to the formation of large settlements, towns and merchant centres in the Serbian and Bosnian states. Serbian and Bosnian medieval rulers, feudal lords, Venetian, Dubrovnik and Greek capitalists, Saxon purgars and a diverse population of Serbs, Greeks, Arbanassis, Saxons, Genoese and many others lived in these purely mining settlements and cities for a longer or shorter period of time. Many centuries later, Serbia con-

tinues to use its mineral resources, while its Ministry of Mining and Energy is working full steam ahead. That is how this new professional association came about - the Chamber of Mining and Geological Engineers of Serbia - the establishment of which is envisaged by the Law on Amendments to the Law on Mining and Geological Research, and at the proposal of the Deputy Prime Minister and Minister of Mining and En-

ergy, Professor Zorana Mihajlović, PhD. The Chamber was formed in October 2021 when its Articles of Association entered into force. One of the important roles of the Chamber of Mining and Geological Engineers of Serbia is to elevate the mining and geological professions in Serbia to a higher level, which means adhering to high professional working standards in mining and geology.

SPECIAL EDITION

MINING & ENERGY

READ THIS ON WEB

Existing Energy Sources Need to be Preserved We have embarked on the intensive formation of mandatory reserves when crude oil is terribly expensive. Furthermore, we depend on global, geopolitical and climate trends and we have no influence over that

I N T E RV I E W

etail prices of petroleum pro duc t s var y daily, hence the Serbian government has been working on resolving this situation, plus, a decision was made to reduce the excise tax on petrol and diesel. We spoke with Tomislav Mićović, Secretary-General of the Association of Oil Companies of Serbia, about market changes, crude oil reserves and new regulations.

As of the 1st of July, oil companies will have to have operational reserves tantamount to quantities required for four days of average production, which means that they must provide both goods and storage space at their own expense. Is there enough space for such storage in Serbia? — This measure doesn’t exist in any modern European economy. Existing storage tanks can take quantities tantamount to four days of average net consumption, calculated over the previous three years. The Operational Reserves Degree envisages that the number of days will increase year on year until we reach 10 days of average consumption in the previous year. Then this will become quite a problem and the largest importers of petroleum products will have to finance the construction of storage space. The only large oil producer, the Petroleum Indus-

SPECIAL EDITION

TOMISLAV MIĆOVIĆ Secretary-General of the Association of Oil Companies of Serbia

In Serbian, as in any other market, the taxes on petroleum products should be commensurate with the purchasing power of citizens, as well as the country’s economic power

try of Serbia (Naftna Industrija Srbije – NIS) has available capacity since the Novi Sad refinery no longer refines oil, so the entire storage space can be used for this purpose. The company also has sufficient storage space throughout Serbia from the time when it was the only distributor on the market and met the needs of the then entire market.

How sustainable is this measure, i.e. is it financially viable, and will it cause additional problems? — We tried to point this out two years ago when the draft decree was on the table and when the Ministry of Mining and Energy decided to activate that provision of the law. Operational reserves have been stipulated in the Energy Law since the law’s 2004 version, which means that since then line ministries could have ordered distributors to form the reserves. In 2019, the Ministry decided to activate this provision. Subsequently, we warned that this provision will have to be reflected in the retail price of fuel because it is an additional cost that no one had had to bear so far. Crude oil and oil derivatives producers and importers will have to engage significant funds for both the goods and storage facilities, simply based on the price of oil derivatives. Since we have been adapting to the EU directives, many things have changed in Serbia and they always require new investments and incur additional costs. Until 2013, we had Diesel D2 and leaded petroleum, the production of which was significantly cheaper than today's types of fuel that meet current EURO standards.

In the meantime, the government has introduced an energy efficiency fee and a fee for the formation of required reserves. Mandatory marking and monitoring of fuel quality have also been ordered, a cost paid by manufacturers and importers. These are all relatively small cost increases but every year brings on new expenses. It is worth noting that, on top of these costs, fuel excise went up considerably, compared to all countries in the region and countries at a similar development level. This year, in addition to operational reserves, the authorities will also prescribe that biofuel should be added to regular fuel. Bio-diesel, which should be added to Eurodiesel, is twice as expensive as Eurodiesel, and of course, that will affect the fuel’s retail price. If this happens, the state should reduce its fuel-related tax. This situation is unsustainable thanks to constantly growing fees and other costs imposed by relevant regulations. In Serbian, as in any other market, the taxes on petroleum products should be commensurate with the purchasing power of citizens, as well as the country’s economic power. The impression is that no one in the government cumulatively monitors the amount of various state-imposed duties, i.e. whether all the costs that accompany the sale of crude oil derivatives on the market are justified and necessary. Ministries of energy and finance, the Interior Ministry’s Emergency Situations Department, public enterprise Roads of Serbia (Putevi Srbije) and local governments all affect the costs associated with trading in petroleum prod-

practice is not widespread, but if the state doesn’t do something quickly, it will spread like wildfire. Russia had significant surplus quantities of diesel and sold that surplus on the European market. Due to financial sanctions against Russia, many supply chains have been interrupted, and suddenly there is not enough diesel in our region and the whole of Europe. Now, on a European scale, diesel is in high demand and has become more expensive, because it has become a precious commodity. In terms of its price, I don’t think that the oil sector or consumers are going to like what’s ahead of us. Because oil companies will have to engage more funds to provide the same amount of fuel, their costs will rise again, and consumers will need significantly more money to buy fuel. Although, I have to say that the Serbian market is regularly well-supplied.

ucts to a greater or lesser extent, and when we add to this mix the Department of Environmental Protection, someone will either have to make a thorough audit of all costs or we will have extremely high fuel prices in Serbia.

You have stated that, in your opinion, diesel is no longer a fuel intended only for agriculture. How will Serbia, in cooperation with oil companies, solve the problem of the agricultural sector having more fuel than it actually needs? — One of the measures that are extremely counter-productive market-wise is the measure stipulated in the decree on capping the prices of crude oil derivatives, which orders NIS to sell fuel to the agricultural sector at a fixed and unrealistic price of 179 dinars per litre. However, both NIS and the government agreed on this price and the measure is now creating new problems. Smaller fuel retailers are losing their agricultural customers which causes more problems. For most retailers who have one or a handful of petrol stations, farmers are their core customers, and we are talking about between 500 and 600 petrol stations in Serbia. Now, wholesalers who supplied small petrol stations, which are dominant in agricultural areas, have no one to sell fuel to. This gives birth to another problem and that is that you have no way to check whether the diesel fuel, which is bought in this way, will actually be used in agriculture. As it happens, certain quantities of this fuel are used in transport and small and medium-sized companies. There is no way to control these measures. Just to be clear, the aforementioned price of fuel for farmers is too high. In most countries, the agricultural sector has the right to buy fuel with significantly lower excise or even no excise at all, so that it can be competitive and produce as affordable food as possible. But in our country, a whole business was born on the back of the right to purchase diesel at a special price. You can buy a larger quantity of fuel than you actually needed for agricultural work and then sell it very cheaply. There is a very big difference between 179 and 203-206 dinars per litre, and if you are resourceful enough, you can make a tidy profit from this. There are certainly cases of misuse, and although beneficial for farmers, this price can cause harm to other segments of the economy. Still, this

The stability of energy supply must come first, which I and many people in the industry have been reiterating for years

Although fuel prices are high in our country given that the global energy crisis is still not subsiding, they are also relatively affordable, thanks in part to the Serbian government giving up on a portion of budget income that comes from charging fuel excise, but also thanks to oil companies because state-capped fuel prices are not adjusted to suit real changes in production costs, import and finally market distribution of motor fuel.

It is important for the stability of supply that the administration is removed from the market as soon as possible so that the market can react to all the changes that are taking place. How can we achieve this? — I would compare Serbian with other national markets. Unfortunately, Serbia is a locked country and we do not have access to the Mediterranean, where crude oil and oil derivatives are traded. So we buy

goods on the coastline and have to transport them which causes significant costs. We also have a limited number of sources. The stability of the energy supply must come first, which I and many people in the industry have been reiterating for years. I am under the impression that the public was not so aware of the importance of the stability of the energy market. Crude oil drives everything. There is no mobility without oil, whether it is the health service, the army, the police, utility companies, or the transport of people, groceries and other goods. Everything comes to a halt without crude oil! Stability is achieved first by diversifying supply sources. In terms of oil, 30 percent of the diesel consumed in Serbia comes from refineries in the area. They are a kind of cross-border competition to the domestic diesel producer. Market rivalry is important, but so is the existence of logistics supply chains via various energy companies that link our market with several different sources of oil derivatives. We must preserve their business ability, so that they can quickly react at any time and provide their customers, and thus the entire Serbian market, with sufficient oil derivatives. This is stability through diversification. State’s oil and oil derivative reserves are another factor of stability. They should be used only if major disturbances occur and in those circumstances, they become priceless. Mandatory oil and oil derivative reserves in Serbia are formed following the EU directive, but unfortunately, the funds that were purposefully paid into the budget of the Republic of Serbia were not spent for that. More precisely, only about a quarter of some 500 million euros paid by producers and importers was re-directed to the Directorate for Energy Reserves to be used for the formation of required reserves. This is not good because today, when it is extremely important to have complete reserves, we do not have them. From 2014 to date, we missed out on several opportunities to buy crude oil when it was cheap. Now, we have started forming mandatory reserves when crude oil is very expensive. There is a proverb that says “don’t leave everything until the last minute”. It is up to us to do everything in our power to reduce the risks of global, geopolitical and climate developments because we certainly cannot influence them.

SPECIAL EDITION

MINING & ENERGY

READ THIS ON WEB

You are the Future!

CLICK ON ICON 

Photos: I. Mitrović/SZC

Serbia Zijin Copper has excellent cooperation with high schools in Bor and the Technical Faculty, and it supports the education of young talented people, primarily from technical professions, some of whom do their work practice at the company

C O R P O R AT E

iring new workers is not lagging behind the company's development and its production plans, which in the coming period, need between 200 and 300 new workers to be realized. We are looking for automation engineers, electrical engineers, mechanical engineers and metal-processing engineers, as well as high school graduates with electrical technician diplomas and experience, drivers of heavy trucks, machinists, welders, mechanical technicians, etc. In general, all job applications are welcome and will b e c o n s i d e r e d , " s ay s M i r j a n a Popadić, HR manager at Serbia Zijin Bor Copper. This year too, Serbia Zijin Copper is continuing with its good practice of maintaining long-term and mutually beneficial relationships with the local communities where it operates through employment, training and education support. The company's approach and its desire to build an efficient, successful and safe Bor and Majdanpek in cooperation with its employees always put people first, because people are our most important asset, as are their experience and production expertise, which are the foundation of our company's vision and business. Hence, Serbia Zijin Copper participated in the Employment Fair, which was organized by the Bor branch of the National Employment Service (May 12) in the upper gallery of the Bobana Momčilović Veličković sports venue, under the

“H

SPECIAL EDITION

MIRJANA POPADIĆ HR manager at Serbia Zijin Bor Copper

In three and a half years, Zijin Copper employed almost 2,100 mostly young workers in Serbia, so the average age of the employees dropped from 45.5 to 39.5

slogan "You are the future!" Serbia Zijin Copper has excellent cooperation with high schools in Bor and the Technical Faculty, and it supports the education of young talented people, primarily from technical professions, some of whom do their work practice at the company. The talent and knowledge that these young people possess can be applied in the company, so our goal is to give them an opportunity in order to prevent the brain drain in Serbia and help young people to build their future there. "All candidates who apply for a job can expect a transparent and fair selection process, and then a job in a dynamic work environment, competitive salaries, the possibility of career development, bonuses, having organized transportation to work and more. The company's goal is to develop mining for the benefit of the local community, so we hope

that with the development of mining we will be able to create greater employment opportunities so that as many people as possible can realize their dreams," Ms Popadić pointed out. This year's Employment Fair was attended by 25 employers, mostly from Bor, who offered over 450 vacancies. As expected, the biggest crowd gathered at the booths of the Chinese companies Serbia Zijin Copper and Serbia Zijin Mining, but also their subcontractors. In three and a half years, Zijin Copper employed almost 2,100 mostly young workers in Serbia, so the average age of the employees dropped from 45.5 to 39.5. Today, the company employs over 6,000 workers who have an average monthly salary of over 100,000 dinars. The net average salary at the company is about 54 percent higher than the national average.

MINING & ENERGY

CLICK ON ICON 

READ THIS ON WEB

Dedication and Enthusiasm of Local Professionals

Euro Lithium Balkan is a subsidiary of the Canadian company Euro Lithium Inc. In Serbia, it has its headquarters in Divci near Valjevo. The company is engaged in geological research of boron and lithium in the ValjevoMionica sedimentary basin, which so far has yielded positive results

C O R P O R AT E

lthough lithium (Li) has become one of the most interesting mineral raw materials in recent years, the minerals of the element boron (B), borates, are a raw material that has a very wide number of applications across many industries. It is almost impossible to imagine a product, especially those related to modern, green, and agricultural technologies, which do not require borates. The EU has recently classified borates as a "critical raw material”, since they have high economic importance, and due to the lack of similar deposits globally, are reliant on a single supplier. The risk of supply constraint is very high and borates are furthermore non-substitutable and very difficult to recycle. These facts make the mineral deposit that we have discovered and are further exploring to be very exciting. Geological research itself is performed in several phases. Exploratory drilling, which is the predominant method of our field research, yields representative material from the depths of the earth. By further processing of the material, we can interpret the mineral composition, and by subsequent analysis, we can also understand the percentage (content) of boron and lithium in the mineral deposit. Based on this data, further analysis and testing is carried out, especially in terms

SPECIAL EDITION

It is important to mention the economic, social and environmental analyses, which are crucial when considering to develop a mineral resource (i.e. to transition from the exploration phase to the exploitation phase). When and if that decision is to be made in the future, it must be made together with the local community

of technological processing of ore material using innovative and ecosmart technologies. It is important to mention the economic, social and environmental analyses, which are crucial when considering to develop a mineral resource (i.e. to transition from the exploration phase to the exploitation phase). When and if that decision is to be made, it must be made together with the local community. Euro Lithium's team in Serbia is comprised exclusively of local professionals, mostly from Valjevo. In addition to dedication and enthu-

siasm in conducting geological research and accompanying activities, our team is excited by that fact that boron and lithium are the critical raw materials of the future. Both elements, i.e. their compounds, are an integral part of the products that form the basis for achieving the Green Agenda and enable sustainable economic development in Serbia, Europe, and the world. The fact that our research's results could have a positive impact on the further development of our society, especially in Valjevo and Serbia, gives us great motivation.

EVENT

The New Swiss Cooperation Programme for Serbia “Partnership that lasts – support at the right time” is the message that marked yesterday’s event regarding the presentation of the Swiss Cooperation Programme for Serbia 2022-2025

Andjelka Atanasković, Minister of Economy

t the official ceremony that also celebrated three decades of partnership between the two countries, Ambassador of Switzerland to the Republic of Serbia, H.E. Urs Schmid addressed the audience on behalf of the Swiss Confederation. “This event marks the start of a new development aid package with a total value of over 90 million euros. This will allow us to continue our support to reforms of the Serbian Government and the Serbian society over the next four years – from 2022 to 2025,” stated Ambassador of Switzerland to the Republic of Serbia H.E. Urs Schmid and added: “Our cooperation programme is undoubtedly the most important basis for our bilateral relations, but it is not the only one. With the total amount of 1.7 billion euro in the period between 2010 and 2021, Switzerland ranks among the most important foreign investors in Serbia, taking second place last year, after the Netherlands and ahead of China." The Swiss Cooperation Programme for Serbia 2022-2025 is a continuation of long-term support to reforms in the Republic of Serbia. Switzerland has been present in Serbia since 1991, which proves its commitment to this bilateral partnership. Until now, Switzerland’s financial support

H.E. Urs Schmid

amounted to 400 million euro, with additional 95 million euro allocated for the period 2022-2025. Within the scope of the new Cooperation Programme, Swiss cooperation with Serbia will focus on economic development and employment, democratic gov-

ernance and civil society, as well as climate change and sustainable urban development. The overall goal of the Program is the Swiss contribution to sustainable development and inclusive growth, while encouraging democratic processes, in support of Serbia's

THE SWISS COOPERATION PROGRAMME FOR SERBIA 2022-2025 IS A CONTINUATION OF LONGTERM SUPPORT TO REFORMS IN THE REPUBLIC OF SERBIA

progress towards European standards and values. The defined goals in the areas of cooperation within the new Programme are "Democratic Governance and Civil Society", "Economic Development and Employment", "Climate Change and Sustainable Urban Development", while migration remains an important topic of Swiss-Serbian cooperation. Within the Programme, at least 1% of the total budget will be allocated as support for culture and arts, with a focus on local cultural initiatives.

CLICK TO GO  www.diplomacyandcommerce.rs

PEOPLE & EVENTS

12 APR

2022 NIN AWARDS

The winners of this year's NIN award are the poet and screenwriter Milena Marković for the best novel of 2021, "Children", while actress Svetlana Bojković received the Person of the Year Award for her environmental activism. The editor-in-chief of NIN, Milan Ćulibrk, said, at the award ceremony, that both NIN weekly and the eponymous award would always uphold truth, so as not to cast a shadow on what they

Svetlana Bojković

13 APR

BALLET JAZZ MONTREAL’S SPECTACULAR PERFORMANCE

Milena Marković

The 19th Belgrade Dance Festival ended in grand style with a spectacular performance “Dance Me” by the Ballet Jazz Montreal who danced to the songs and poetry by Leonard Cohen two nights in a row, on April 11 and 12 in front of the packed hall of the Serbian National Theatre

Aja Jung, Director of Belgrade Dance Festival

16 APR

MOROCCAN FILM FESTIVAL AT THE YUGOSLAV FILM ARCHIVE

represented. The ceremony at the Yugoslav Drama Theatre was attended by Professor of the Faculty of Philosophy Ognjen Radonjić, lawyer Sead Spahović, Commissioner for Equality Brankica Janković, President of the Serbian Academy of Sciences and Arts Vladimir Kostić, historian Predrag Marković, and President of the Independent Association of Journalists of Serbia Željko Bodrožić.

in Novi Sad. The audience of the Belgrade Dance Festival has been waiting for more than two years for the Dance Me performance by the famous ballet company, giving an ovation to the 14 brilliant dancers at the central stage of the Novi Sad theatre.

H.E. Giles Norman, Ambassador of Canada with members of the Ballet Jazz Montreal

In cooperation with the Yugoslav Film Archive, the Moroccan Cinematographic Center and the Ministry of Culture and Information, the Embassy of the Kingdom of Morocco in the Republic of Serbia held the first Moroccan Film Festival at the Yugoslav Archive. Sixty-five years have passed since the establishment of diplomatic relations between Morocco and Serbia, and to mark this jubi-

lee, the Embassy of Morocco has prepared a diverse cultural and artistic programme. The Moroccan Film Festival is one of the main events that will celebrate the Year of Morocco in Serbia. As part of the jubilee celebration, the Moroccan Philately Exhibition was opened in March, and the joint edition of the postage stamps of Serbia and Morocco can still be seen at the Postal Museum.

H.E.Mohammed Amine Belhaj, Ambassador of Morocco

CLICK TO GO  www.diplomacyandcommerce.rs

PEOPLE & EVENTS

20 APR

LJUBICA GOJGIĆ AWARDED THE FRENCH ORDER OF THE LEGION OF HONOUR

At the ceremony at the French Embassy, journalist Ljubica Gojgić was given the Order of the Legion of Honour by the French Ambassador to Serbia, H.E. Pierre Cochard on behalf of the President of France. The ambassador said on the occasion that the Order was given to Ms Gojgić because of her fight for the democratic values in Serbia. Ms Go-

jgić said that she was proud to be the Order’s recipient and honoured that her career has contributed to the fight for upholding democratic values, especially freedom of speech and free expression of opinion. The Order of the Legion of Honour is the highest French medal established by Napoleon in 1802.

H.E. Pierre Cochard and Ljubica Gojgić

05 MAY

ISRAELI EMBASSY MARKS THE 74th ANNIVERSARY OF THE STATE’S FOUNDING

On the occasion of the Independence Day of Israel, the Israeli Ambassador to Serbia, H.E. Yahel Villan, hosted a ceremonial reception at Kolarac in Belgrade marking the 74th anniversary of the establishment of the State of Israel. The ambassador addressed numerous guests at the gala concert saying that "Serbia is not Israel's geographical neighbour, but its neighbour in its heart." He also pointed out that this year marks the 30th anniversary of the resumption of diplomatic relations between Serbia and Isra-

Brankica Janković, the Commissioner for Protection of Equality

07 MAY

WITH LOVE FROM ARGENTINA

el, which were interrupted in 1967, adding that the Yugoslav embassy in Tel Aviv was reopened in 1992. He also said that although diplomatic relations between the countries were severed at a certain point, the relations between the two peoples were never disrupted. The celebration began with the Makris Symphony Orchestra playing the anthems of the two countries. After that, the Orchestra, led by the Israeli conductor Nir Brand, performed in a concert in front of the reception guests.

H.E. Yahel Villan

In cooperation with the Embassy of Argentina, Hyatt Regency Belgrade hosted the event called With Love From Argentina Week for the first time. The evening of tango, performed by the dancers from the Tango Natural Institute, took place at Ellington’s Club of the Hyatt Regency Hotel Belgrade on May 7, 2022. The With Love From Argentina

Week will last until May 15 and will close with a traditional Sunday brunch with Argentine specialities. At the event, the guest chef Julian Galende, from the Park Hyatt Hotel in Buenos Aires, socialized with the guests throughout the event, cooked for them and made this unique gathering even more special with his presence.

H.E. Osvaldo Narciso Marsico, Ambassador of the Republic of Argentina to Serbia

PEOPLE & EVENTS

08 MAY

EMBASSY OF MALAYSIA HOSTS AIDILFITRI CELEBRATION

The Embassy of Malaysia hosted a reception on the occasion of Aidilifitri or Eid Mubarak Celebration, better known locally as Bayram, on Sunday, 8 May 2022 at the Hyatt Regency Belgrade. In Malaysia, it is termed as ’Hari Raya’ or Day of Celebration. A celebration to mark the end of a month of dawn-

to-sunset fasting in the holy month of Ramadhan. It is celebrated on the first day of the month of Syawal (the following month after Ramadhan) amongst members of immediate family and normally the celebration is extended throughout the month with other relatives and friends.

Mr Khairul Tazril Tarmizi, Chargé d'Affaires of the Embassy of Malaysia with guests

09 MAY

EUROPE DAY MARKED IN NOVI SAD

Novi Sad, declared the 2022 European Capital of Culture, hosted the celebration of Europe Day 2022 under the slogan "We are better together". On the occasion, a cocktail reception was held at the City Hall, while the Festival of Europe took place in front of the Novi Sad’s government seat, in Freedom Square (Trg Slobode). At the event, EU

member states presented their culture and customs. The Head of the EU Delegation to Serbia, H.E. Emanuele Giaufret, Mayor of Novi Sad, Miloš Vučević, Serbian Minister for European Integration, Jadranka Joksimović and French Ambassador to Serbia, H.E. Pierre Cochard, officially opened the event.

H.E. Emanuele Giaufret, Ana Brnabić, Prime Minister H.E. Emanuele Giaufret and Miloš Vučević, Mayor of Novi Sad

09 MAY

HEADING TO CORSICA!

Under the auspices of the Heading to Corsica! Programme, a delegation from the Corsican city of Bastia, a candidate for the European Capital of Culture 2028, led by the Mayor, Mr. Pierre Savelli, the recipient of the Goncourt Award, writer and translator, Jérôme Ferrari, and a delegation from the University of Corsica Foundation will be in

H.E. Pierre Cochard, Ambassador of France and Dr. Aleksandar Pajić,Mayor of Šabac

Novi Sad and Belgrade from May 9 to 12, 2022, during the Days of Molière event. The reception at the French Embassy was attended by the programme's participants and culture, tourism and media representatives. The French Ambassador H.E. Pierre Cochard and the Mayor of Bastia, Pierre Savelli, addressed the reception guests.

Mr. Pierre Savelli,Mayor of the Corsican city of Bastille and H.E. Pierre Cochard

CLICK TO GO  www.diplomacyandcommerce.rs

BUSINESS NEWS

BRD, EU AND INTESA LEASING EXTEND E NEW FUNDING TO BUSINESSES IN SERBIA

Small and medium-sized enterprises (SME) in Serbia will benefit from additional funding from the European Bank for Reconstruction and Development (EBRD) and the European Union (EU) which will be available at Intesa Leasing. A new €5 million credit line will be on-lent by Intesa Leasing to Serbian enterprises allowing them to invest in improving their work standards and processes, making them more competitive in local and EU markets. The aim is to encourage SMEs to invest in upgrades in three key areas: environmental protection, health and safety, and product quality. In addition to leases, SMEs will benefit from grant incentives worth up to 15 per cent of the total lease amount on successful project completion. Particular focus will be on investments in greener technologies, to help SMEs adapt to EU environmental standards and to improve their energy efficiency. At least 60 per cent of all leases will support energy-saving investments.

ASSION FOR FASHION IN P BELGRADE

Belgrade Fashion Week is one of the most iconic fashion events in the country that brings together everybody passionate about fashion. This year, in addition to its traditional programme and fashion shows of famous local designers, Belgrade Fashion Week will also feature numerous fashion shows, castings, exhibitions, pop-up shops and the latest trends, all showcased at the UŠĆE, BEO, Mercator and Delta City shopping malls, which are must-visit destinations for the fashion community and places favoured by the Belgrade residents. The goal is to bring the unique splendour of high fashion closer to places that are sources of fashion

CHNEIDER ELECTRIC’S S 20TH ANNIVERSARY MILESTONE IN SERBIA

Marking its 20th anniversary, Schneider Electric organised the lecture titled “Sustainability and what remains after us?” at the Technical Faculties of Belgrade premises yesterday. The lecture was held for students of the Faculties of Electrical Engineering, Architecture, Mechanical Engineering and Construction Engineering, as well as for all other students interested in the topic of sustainability in techni02

PENED THE “ROSA HOMOLJE” O SPARKLING WATER BOTTLING PLANT IN NERESNICA

The Coca-Cola system in Serbia has officially opened a new bottling plant in Neresnica, Kučevo municipality, thus continuing with significant investments in the local economy. In the new bottling plant, opened in the presence of Serbian President Aleksandar Vučić, Ambassador of the United States of America, H.E. Christopher Hill, and numerous guests from the political and business world, Rosa Homolje sparkling water will be produced. In the first year alone, the value of the investment in the production modernisation and equipment is cca 5 million euros. In phase one, 50 people are employed, including those who worked for the previous owner. The bottling plant in Neresnica is already the fourth large acquisition of the Coca-Cola system in the last two decades. Although recognised for producing sparkling drinks, the company, guided by the vision of being a 24/7 partner to customers and consumers, added Vlasinska Rosa, Next juices and one of the most popular confectionery producers, Bambi, to its portfolio over the years.

URTHER INVESTMENTS IN F NETWORK QUALITY

Yettel, a new telecommunications brand introduced more than a month ago, has launched on the market services and products that help customers to find a balance. Yettel’s philosophy is to always cre-

trends and inspiration for many, harmonize them style-wise and through this synergy show how we can improve our own creative expression.

cal solutions. On the occasion, the company also granted an interactive screen to the Faculty of Electrical Engineering, and a day before, a mini solar bench to the Secondary School of Mathematics in Belgrade, for students to charge their phones and have WIFI. After the lecture, a mini fair of solutions was organised at the Technical Faculties premises. Today, after 20 years of operation, Schneider Electric in Serbia gathers more than 100 local businesses in a partner network that will continue to expand. ate added value – both for the company and for the customers. A strong brand is just that, an added value for customers, added Mike Michel, Chief Executive Officer. Until now, Yettel users have had the Yettel Friday service within the app, where they can “scratch” a gift in the app every Friday. Now there is Yettel every day with the best offers and discounts from more than 70 partners in 10 different categories that apply to all users in Serbia. We also introduced Yettel ID, a simple concept that allows you to log in to different digital platforms using a Yettel mobile number. Customers responded really well to our recycling program over the past year, and and we have seen that eco-conscious thinking is on the rise: so far, we have together recycled more 250,000 devices. For 2022, the bar is even higher, Michel concludes.

CLICK TO GO  www.diplomacyandcommerce.rs

CULTURE AT EVERY TURN

DDOR, as the Official Insurance of the project Novi Sad – European Capital of Culture, joined the program segment Flags of the Future, wanting to enrich the program of the event, primarily to point out the importance of the culture of behavior in traffic. Special attention will be paid to the safety of people, regardless of whether they are car drivers, cyclists, motorcyclists or pedestrians who are also the most endangered participants in traffic. During the event in the Creative District, in addition to the DDOR Chill out zone, visitors will have two simulators where they can try out a head-on collision simulator as well as limitations of perception and reflexes on the simulator of being under the influence of alcohol or drugs. In this way, participants in these simulations will better understand the risks of irresponsible behavior and gain experiences that will support them in complying with traffic regulations and culture. 06

ŠAMAR FOR THE ENTIRE CREW!

Something happened that evening that had never been felt or seen anywhere before – an incredible combination of traditional and contemporary was all around us. And yes, all this was made possible thanks to a true rakija revolution embodied in Šamar (The Slap)! Everyone who visited some of the most popular clubs in the capital, such as Mladost, Ludost, Gadost, Gajba or Radost on Thursday, April 21st, knows what we are talking about. Each club was branded with Šamar, the only rakija that caresses you while providing an authentic experience of sheer plum pleasure, with a slightly ‘slapped’ note of quince. During ‘The Caressing’, which is how this event was called, the hostesses encouraged the guests to reconsider all the rules on how rakija is made, consumed or served. While we are at defying the rules, nobody does it better than Šamar because it has 100% natural authentic taste. For the first time ever, plums and quinces meet in the same bottle and bring an unexpectedly delicate taste. Šamar rakija stands shoulder to shoulder with the most famous global brands. The guests also enjoyed the performances of our most popular DJs such as Genesis, Lea Davogić, Marko Milosavljević, Peppe, Malina & Dooshan, Danijel Čehranov, Vuk Vukosavljević and Sonja Pavlica.

READ THIS ON WEB

FOOD PLANET

by Tanja Banković

Serbian Ingredients Have Influence on Hungarian Recipes The potato casserole we prepared now has Serbian kulen in it instead of Hungarian sausage. Thanks to the time spent here, some ingredients made their way into our family recipes that reflect our stay in Belgrade, most notably the ajvar MRS. ÉVA FISLI-BARNA The wife of the Hungarian ambassador to Serbia

rs. Éva Fisli-Barna told us about main features of Hungarian cuisine. Also, she talked about ingredients in Serbia and living in Belgrade.

What are the main features of Hungarian cuisine? — I could easily say that the main characteristics are paprika, onion, garlic and fat. Without doubt, these ingredients can be found in most Hungarian kitchens and we use them to make our traditional dishes. Of course, nowadays we substitute the fat with vegetable oil or a vegetable fat. Concerning meat, the most common dishes are made of pork, beef or chicken. When making food, the traditional way is to roast the meat, hence the Hungarian name “pörkölt” (to “roast” a stew). The essence of this technique is to roast the chopped onion and the meat on fat, which will give a different flavour compared to simply cooking it. If you add a little Hungarian wine, you will get a more unique taste, which is a true gastronomical pleasure. Soups have a major role in Hungarian cuisine of which many local variations exist in different regions. The Sunday lunch is the key meal of the week for the family, when a slow-cooked broth is served followed by Wiener schnitzel and mashed potatoes. A warm bean soup Jókai style is a classic for the cooler winter months, it has a thick texture and is usually served with smoked meat. Around the mountains of Bakony, the proximity of the forest offers itself to create a ragout soup with mushroom and game meat, most commonly seasoned with tarragon. The summer period is all about a fresh and cold bowl of fruit soup or the star of every summer get togeth-

TRADITIONAL DINNER AT SKADARLIJA WITH TAMBURICA MUSIC IS A PERFECT START FOR A WEEKEND ADVENTURE. THE KALAMEGDAN, SAINT SAVA’S CHURCH AND THE BEAUTIFULLY RENOVATED NATIONAL MUSEUM ARE ALL MUST-SEES! er outdoors: the goulash. A true Hungarian goulash is a lot juicier than the one served in Serbia, it is more like a soup than a stew, always slow cooked from quality beef. There is also a great tradition of oven cooked meals in Hungary, most notable our version of pota-

to casserole, which resembles to moussaka. When it comes to fish, the traditional fish soup is a staple, but breaded carp is also on the menu, not to mention smoked trout from Lilafüred, which is now having a comeback. Although Hun-

garians don’t eat as much salad as people in the Balkans do, we make many types of different pickles from cucumber, cauliflower, beetroot, cabbage or even a watermelon. With regards to desserts, the well-known Dobos cake comes first, but you have to try the pancake Gundel style á la flambé, or the Somlói sponge cake for that matter. Dessert can be substituted by a glass of sweet Tokaj wine, of which Louis XIV, the king of France said the following “the wine of kings, the king of wines”. What do you miss the most about from your country? Can you find all the necessary ingredients for the preparation of tra-

CLICK TO GO  www.diplomacyandcommerce.rs

Hungarian Layered Potato – Rakott Krumpli A Hungarian culinary classic which is not difficult to assemble, but takes a little preparation and cooking time. As a popular family meal and children’s favourite, it makes a good dinner alone or stands as a second course after a lighter soup. Try with gherkins or pickled beetroot on the side. The whole of Hungary would be nodding with an approval smile, forget goulash!

ditional Hungarian dishes in Serbia? — So far, it did not pose a problem to find the right ingredient in Serbia. I think that if you spend time in a country, you need to adapt to the local conditions, which also includes dietary habits. The potato casserole we prepared now has Serbian kulen in

your friends to see here? — I love living in Belgrade and the mentality of Serbian people is really close to me. In restaurants, the waiter always asks whether I liked the food or not, and he or she really means it! If you visit a place more than once, you will be greeted as a friend, so I get called komšija at the bakery or the green-

I ADORE SERBIAN CUISINE AND SERBIAN CULINARY HABITS. NO RUSH, TAKE IT SLOW, TALK TO FRIENDS FOR HOURS. THIS IS SOMETHING I CAN IDENTIFY WITH it instead of Hungarian sausage. Thanks to the time spent here, some ingredients made their way into our family recipes that reflect our stay in Belgrade, most notably the ajvar. Do you like Serbian cuisine and what is your favourite Serbian dish? — I adore Serbian cuisine and Serbian culinary habits. No rush, take it slow, talk to friends for hours. This is something I can identify with. If you don’t pay attention, you get full just by having a starter. I really like mučkalica, which resembles to our lecsó, but I also love grilled meat like čevap. The teletina ispod sača served with pekarski krompir is simply amazing and I think I could go on for long… What do you think of life in Belgrade? Did you manage to visit some other places in Serbia and what would you recommend to

grocers. Our friends and family members visit us quite often and they leave with happy memories. We already have a “weekend package” like a travel agent, so that we can show the best things the city has to offer. Traditional dinner at Skadarlija with tamburica music is a perfect start for a weekend adventure. The Kalamegdan, Saint Sava’s Church and the beautifully renovated National Museum are all must-sees! We can have a coffee in Hotel Moscow to take a short break, which is also famous for its Hungarian Zsolnay ceramic décor. Belgrade’s rapidly developing new area is the Belgrade Waterfront, which already has a special atmosphere and we cannot miss the special mood on the splav restaurants, which I and my guests always can’t get enough of. We’ve been to many places in Serbia but there are a lot more to see and do! Right now, we are planning to go to Zlatibor and its surroundings!

INGREDIENTS MAKES:4 PORTIONS • 600g (1.3lb) potatoes (will be boiled and cut into disks) • 250ml (1 cup) sour cream • 5 eggs (boiled and sliced) • 100g (3.5oz) hungarian spicy sausage or chorizo style sausage as substitute • 50g (~2oz)grated cheese • salt, black pepper to taste • 2 tablespoons of oil or fat

HOW TO MAKE 1. Boil the potatoes first, whole, with skins on. Place the potatoes in cold water before bringing it to a boil, make sure the cooking liquid completely covers the potatoes. Add more liquid if it gets too low. Keep the boil to a gentle simmer. 2. When they slide off a fork, and tender all the way through they are done. Let them cool down first, peel and slice them into medallions. 3. Cook the eggs in simmering water for 15 minutes, you need them hard boiled, peel under cold running water.

4. Slice the potatoes, eggs and sausage into disks, and egg slicer would be of help here. 5. Grease your baking dish lightly with butter or oil of your choice or fat then start with a layer of potatoes at the bottom. 6. Top the potatoes with a layer of sliced eggs followed by sausage disks 7. Cover evenly with sour cream, season with salt and pepper, keep in mind the sausages in the layer are already salty. 8. Add a new layer of potatoes, eggs and sausages then cover with the sour cream and season 9. The top layers are potatoes finished off with a layer of sour cream 10. Sprinkle greated cheese on (emental, trappista, cheddar or similar) – this is a non-essential but a nice extra. 11. Cook for 45minutes on 180C in a preheated oven, then for a further 15 minutes on 200C to give it good colour if needed. Tip: Make it a couple of hours ahead, leave the dish go cold then reheat just before serving. All the flavours will fuse together and cutting slices will be neater.

READ THIS ON WEB

CORPORATE

Elevate Your 5-star-summer at Viceroy Kopaonik Discover the benefits of staycation or a holy stay

CLICK ON ICON 

WEBSITE

FACEBOOK

YOUTUBE

INSTAGRAM

hoose your perfect summer destination wisely - enjoy the holiday close to home and step away from long trips, airport stress and complicated plans. Spend more quality time together and recharge at the Viceroy Kopaonik hotel! Imagine sipping a glass of wine on a sunny private balcony with a stunning view of the Kopaonik peaks, or grabbing a basket full of seasonal salad, chocolate truffles, homemade pastries and jams for a delicious summer picnic on the sunbathed slopes. Find undiscovered beauty and enjoy endless adventures which are only a few hours away from your doorstep. The mountains can be a fantastic playground and if you choose to play the Viceroy way, at Viceroy Kopaonik resort you will discover some lesser-known allures of summer in the most attractive mountain location in Serbia. Yoga in the fresh mountain air, hiking in the hills and blubbery picking – are just a few of the endless ways to reconnect with nature, and rebalance your body and mind in Serbia’s largest National Park. The first luxury resort of the Viceroy Hotels Group in Europe and the only 5-star ski-in/ski-out resort at the Kopaonik is the newest mountain hotspot for our nature lovers across the globe. Viceroy Kopaonik offers nothing less than perfection in all details – from interior design to its extraordinary gastronomic offering, complemented with intuitive service. But this unique 5-star experience is much more than the luxurious guest rooms and sumptuous food and innovative beverages. It is a treasure trove of experiences in breath-taking surroundings throughout the year. During the spring and summer seasons, special packages are available for all Viceroy’s guests. One day you can take a guided walk through the forests collecting mushrooms while the next day you can discover black truffles alongside our local experts and their hunting dogs. Back in the resort, Viceroy

DISCOVER THE NEW HEIGHTS OF OUTDOOR AND INDOOR SUMMER ADVENTURES AT THE KOPAONIK AND SPEND YOUR SUMMER IN TRUE VICEROY STYLE WHILE ENJOYING TOP-NOTCH SERVICE

master chefs will turn your forest bounty into delicious dishes and gourmet dining experiences. Wine hedonists should not miss a visit to Budimir vineyards, located in Aleksandrovac, just a kilometre from the hotel, where guests can choose from the collection of tour experiences offering the finest selection of wines and traditional meals. If you want to soak in the sun and sip wine at your leisure, guests can take the Viceroy luxury picnic basket packed with homemade delectations and indulgent treats and explore for the perfect spot to spread their blanket and relax. The great thing about spend-

ing summer in the mountains is that you can enjoy yourself at whatever pace you wish. If you are looking for a more tranquil experience, choose a spiritual tour visiting monasteries Sopoćani, Djurdjevi Stupovi, Crna Reka and Petar’s Church or enjoy a traditional lunch and walking tour in Novi Pazar. Some days you might want to mix it up by trekking in the morning and relaxing in the afternoon. Viceroy spa, outdoor pools and hot tub are ideal to soothe your body after outdoor adventures. Unwind and let our Viceroy spa specialist reset and restore your body and mind through a wide se-

lection of treatments and massages to choose from. Learn to stir and shake from the very best at a Viceroy cocktail master class in the Pique ski bar or kick back at one of many weekend summer parties by the poolside. The Viceroy Kopaonik Serbia spa is the only full-service luxury spa on the Silver Mountain, providing holistic wellness experiences and precious moments of relaxation in a cozy, inspiring, and intimate atmosphere throughout the year. Together with a beauty lab, an indoor vitality pool, a hammam, and six treatment rooms, the spa by Viceroy covers all types of hedonistic journeys – from Mountain-inspired therapies to contemporary beauty rituals. Yoga classes are held every Saturday morning from June to August on the Mountain Kitchen terrace with panoramic views of the Kopaonik. The first luxury hotel of the Viceroy hotels & resorts Group in Europe has raised national hospitality standards and made Kopaonik the most desirable new destination for domestic and regional based tourists with the highest expectations. While at the resort, guests can enjoy an extraordinary gastronomic journey, from the hotel's signature restaurant Peroko – the newest culinary hotspot that has included fantastic gastronomic dishes from the Asian fusion cuisine in Kopaonik’s menu for the very first time – to the Pique Ski Bar, the epicentre of the Viceroy vibe with a jaw-dropping view of Pancic’s peak. Those guests who would like to enjoy a delicious family lunch comprising tasty local and international dishes should come to the Mountain Kitchen. Discover the new heights of outdoor and indoor summer adventures at Kopaonik and spend your summer in true Viceroy style while enjoying top-notch service. You will treasure this experience that you will always come back to because this is your home away from home.

CLICK TO GO  www.diplomacyandcommerce.rs

READ THIS ON WEB

CULTURAL HERITAGE BUILDING

Presentation of the National Museum of Serbia

Photos: National Museum of Serbia

The building that houses the National Museum of Serbia is located in the centre of Belgrade, on the main city square, the Republic Square (Trg Republike). It was built in 1903, to be used for the Fund Administration, and it was designed by the architects Andre Stevanović and Nikola Nestorović

he building is a quintessential example of monumental public palaces from the late 19th and early 20th century. It was conceived in the spirit of academic eclecticism with the dominance of Neo-Renaissance elements. The façade decorations and the building interior were made by Franja Waldman. This new monumental building erected on the site of the famous Dardanelli cafe was supposed to represent the modernity and progress of the banking concept and the security of the banking system in Serbia. The two-storey building had a central hall with a three-legged staircase. On the ground floor, on the right side, there was a counter hall for bank clients, while offices occupied the left wing of the building and its upper floors. The counter hall was decorated with slender iron pillars with decorative chapiters, which ornamental beams resting on them.

AT THAT TIME, A NEW CEREMONIAL STAIRCASE WAS ADDED TO THE INTERIOR, AND ON THE RIGHT SIDE, A NEW COUNTER HALL, WHICH TODAY SERVES AS THE ATRIUM OF THE NATIONAL MUSEUM OF SERBIA AND FEATURES A GLASS ROOF

Thirty years later, the building had to be expanded and reconstructed, so in 1929, the Hipotekarna Bank bought the land next to the newly built Lazar Paču Street. This time around, architect Vojin Petrović was the chief designer who reflected the architectural work of Nestorović and Stevanović in his design. The building occupied the entire block between Vasina Street, Republic Square, Čika Ljubina and Lazar Paču streets. At that time, a new ceremonial staircase was added to the interior, and on the right side, a new counter hall, which today serves as the Atrium of the National Museum of Serbia and features a glass roof. During the Second World War, the building suffered significant damage in the bombing, and after the war, it was rebuilt, but without the central dome. The building was functional again, but it served banking purposes only shortly af-

CLICK TO GO  www.diplomacyandcommerce.rs

ter that. In late 1950, a decision was made to cede the building to the National Museum, which has moved eleven times since its founding in 1844. The official opening of the Museum took place on May 23, 1952. In the 1960s, thanks to the effort of the museum manager, Dr Lazar Trifunović, and with the view of adapting the building to the new purpose, extensive conservation and restoration works were performed and the building was restored to its original appearance, featuring its original dome. The interior was adapted for the needs of the National Museum, but the Museum’s needs were only partially met. During the reconstruction works carried out above the counter hall (today’s

THE BUILDING’S FAÇADE, FACING THE REPUBLIC SQUARE, AGAIN FEATURES THE MAGNIFICENT CENTRAL DOME AND THE STATUE OF THE EAGLE IN FRONT OF IT, MADE BY THE SCULPTOR RISTO STIJOVIĆ Atrium), a Great Gallery was added as space for thematic exhibitions. The reconstruction was carried out in line with the drawings made by architects Aleksandar Deroko, Petar Anagnosti and Zoran Petrović. The building’s façade, facing the Republic Square, again features the magnificent central dome and the statue of the eagle in front of it, made by the sculp-

tor Risto Stijović. The same artist painted bronze portraits of the most important people in the Museum’s history - Jovan Sterija Popović and Mihailo Valtrović. The reconstructed National Museum was inaugurated on July 5, 1966. Over the next few decades, the Museum grew and lived in this building, but due to the lack of continuous investments in the maintenance of its building,

which inevitably led to decay, it lagged behind the Museum’s developments, hence it ran out of space for storing and exhibiting artefacts. Soon, a decision was made to close the Museum’s permanent exhibition to visitors. After several attempts to renovate the building, the complete renovation, adaptation and restoration of the National Museum’s building, which now also has the latest security systems, was carried out during the period between 2016 and 2018. The National Museum was officially opened on June 28, 2018, and since then it has been creating various programmes for visitors of different ages and interests on a daily basis. Source: National Museum of Serbia

READ THIS ON WEB

INTERVIEW

15 Years of Beldocs We have been dedicated to daring, authentic and creative films - documentaries that penetrate deep and stimulate thinking, reveal stories from reality, bring people closer together, and inspire them to reflect, create and believe in changes MARA PROHASKA MARKOVIĆ Director of the Beldocs Festival

he jubilee, 15th Beldocs Festival, one of the leading documentary film festivals in this part of Europe, opened on 11th May in Belgrade and will last until May 18th. The Festival will showcase over 100 best documentary films of today. This year, a new regional VOD platform, Beldocs+, was launched, where documentary films from previous festival editions are available. The platform can be accessed in Serbia and other West Balkan countries on www. beldocs.rs. We’ve talked with the festival director, Mara Prohaska Marković, about this year’s festival and its long-lasting heritage. The 15th Beldocs Festival is getting closer. As someone who has been long involved in its organisation, could you tell us something about its development over the years and its position today? — I have been involved in the organisation of Beldocs since its first edition in 2008. Given that I was at the very source, I had a chance to participate in the development of one of the most important documentary film festivals in this part of Europe. The skill of balancing between possible and impossible in the first years, which were very fragile, was essential for overcoming the lack of true institutional support since Beldocs was created as an initiative of individuals-enthusiasts and it took years for institutions to recognise its importance. At that time, documentary film was at the margins of the Serbian cultural scene, its production was modest and it relied on individual efforts with no local institutional support, without the possibility of showing the films that were made and without the audience to follow this type of film production. At the same time, the incredible vitality of the global docu-

Photo: Vidoje Manojlović

mentary film production could be experienced at the festivals in Amsterdam, Jihlava, and Nyon, where documentary film was the central focus. The Beldocs founder had a vision of Belgrade and Serbia as one the centres of creative documentary filmmaking in the network of world festivals. Today, Beldocs is truly recognised in European, regional and nation-

part of Europe. This year we are marking a jubilee. We have existed, lived and grown for 15 years, both as a festival and as an organisation. Already for fifteen years, we have been dedicated to daring, authentic and creative films - documentaries that penetrate deep and stimulate thinking, reveal stories from reality, bring people closer

BELDOCS PREMIERES FILMS MADE BY SOME OF THE MOST DARING FILMMAKERS FROM AROUND THE WORLD al circles as a vibrant point of dynamic circulation of documentary films, projects, ideas, film professionals, audience, media, children and young people, that is, as the most important networking place for global creative documentary film making in this

together, and inspire them to reflect, create and believe in changes. We believe that by addressing socially relevant issues that we as a society, individuals or groups are facing, we are creating an inspiring place for the audience and film professionals.

What is special about this year’s festival? What would you like to single out from the festival’s programme and organisation? — We will screen over 100 best documentary films and XR contents from the whole world, in 12 programme sections, at six locations in Belgrade and host about 30 film professionals from abroad. The tickets for all screenings can be bought in one place – at the Beldocs website. Beldocs is still the only festival in Serbia that offers this type of service to the audience. The Festival’s online ticketing service was developed two years ago, to keep up with the digital transformation processes and help the audience find the films they wanted. Beldocs premieres films made by some of the most daring filmmakers from around the world and some of this year’s most eagerly awaited world documentary films but also discovers new talents, au-

CLICK TO GO  www.diplomacyandcommerce.rs

Over the years, Beldocs was, relatively speaking, in a habit of ‘shocking’ the audience by inviting controversial guests, such as Bernard-Henri Lévy or Cicciolina, but also of screening films of a more hermetic, abstract art expression. How do you find the right balance and which side is Beldocs leaning towards more?

— Beldocs is leaning towards all sides. In the programme sense, a documentary film festival must be considerably open and keep its horizon sufficiently distant, wide and deep to cover the diversity of the world in which we live and present the most diverse narratives about people, phenome-

na from the sphere of reality or from the cracks of what we call the reality. I believe that Beldocs has that broadness to present the first-rate art audio-visual works, socially-engaged films, popular and commercial works and that in each of these cases, films from the most daring contemporary au-

thors who inspire and stimulate thinking. Sometimes the topics we address are socially sensitive, even controversial or provocative. By careful selection of films in the framework of Beldocs, we want to open space for public dialogue, discussion, and exchange that sometimes surpasses artistic, in-

Photo: Nemanja Stojanović

thors who offer a fresh perspective and inventive styles. We are exceptionally happy to organise national premieres, at the Festival’s opening and closing, of the films developed as projects in the framework of the Beldocs Industry Programme of previous years. The Festival opens with the film ’Museum of Revolution’ by Srđan Keča and closes with the Ukrainian film ’Outside’ by Olha Zurba. By screening this and other Ukrainian films we wish to give support to Ukrainian documentary filmmakers, our colleagues and partners. As a special in memoriam screening, we present the film ’Mariupol’ by the Lithuanian director Mantas Kvedaravičius, who was killed precisely at Mariupol at the beginning of April when he returned there to film with his camera. We are particularly proud of the Serbian Competition Programme with the premieres of Serbian documentary films; the International Competition Programme includes the first or second works of some of the most daring authors who frequently surprise us with their originality in the approach and lucidity of their film language; then Meteors, a programme section led by innovations and experimenting; Woman vs. System, a special programme addressing the socially-relevant topic; Beldocs Teen selected by young programmers within the expertly moderated process, and Fireworks, inspired by the visually powerful films. The unique feature of Beldocs is certainly the XR exhibition: an immersive reality where we present works created utilizing the most advanced technology, and we award the future documentary films and XR contents and stimulate their making and distribution. Finally, Beldocs, together with the Industry activities, has been recognised at the European level as a unique event in this part of Europe and one of the main meeting points for audio-visual professionals from Europe, the region and Serbia, to develop a creative documentary market.

IN THE CONTEXT OF A DOCUMENTARY FILM FESTIVAL, CINEMA SOMETIMES PLAYS THE ROLE OF THE ANCIENT ROMAN ARENA

Photo: Nemanja Stojanović

formative and intellectual frameworks and enter the sphere of personality development, somatic effects, re-examination and facing current challenges of the world we live in. In the context of a documentary film festival, cinema sometimes plays the role of the ancient Roman arena. In the Roman arena, the provocateur was the challenger who teased the audience, in order to provoke their emotions. Documentary film has the power to divert the audience, individuals or groups from the regular, peaceful state of mind into a state of turbulence and heated reactions. These are situations in which our emotions and our bodies act through our mind, i.e. the intellect, but which transform the latent into the manifested, disintegrate us for a moment and enable us to wake up the unconscious. More than that, documentary film enables us to immerse ourselves in the lives of others, perceive the world from a different perspective, and be more emphatic and aware of people who will create a better society. I believe that documentary film is a great stimulus for growth.

READ THIS ON WEB

THE DESTINY OF VOJVODINA’S RAILWAY

by Robert Čoban

The Last Train to Jasenovo Soon, Vojvodina will have excellent international railway corridors leading to Budapest, Zagreb and Timisoara, as this is an obligation that stems from international agreements, while most of the capillary railway network throughout the province, built during the Austria-Hungary Empire, will probably be sold as scrap metal. The Serbian Railway Infrastructure Company (Infrastruktura Železnice Srbije) has already started dismantling it

ocal media in the southern Banat district have reported that the Belgrade-Vršac train derailed near the Nikolinci station on February 18th, at 8:20 AM. The Banatmedia website said the following: "There were no injured passengers and 20 of them continued the journey on foot to the next station." Trains are sliding off the rails in advanced Western European countries too, and that’s nothing new. What is news is that there were only 20 passengers on the train. Here’s another piece of news from the same day: "A fire erupted in the BG Voz train at 14.45 near Ovča. There were few passengers in the train car who were evacuated on time. The fire was localized and is currently being put out by three fire trucks and 12 firefighters. Railway traffic on the Pančevo Bridge-Ovča route is interrupted." Even this would not be significant news if it wasn’t similar to the earlier one in the part where the train carried just “few passengers". On the same day, February 18th, top Serbian officials rode on the fast train from Belgrade to Petrovaradin to get a glimpse of what it would be like to ride on a train that will run 200 kilometres an hour and connect the two biggest cities in the country. This time last year, my colleague Zlatko Crnogorac and I travelled from the Belgrade Centre (Prokop) station to Vršac. The experience was great - there were six departures a day, the train was punctual and clean and even the toilet was spotless. However, at 10 am, we were the only passengers at the Prokop station - the platforms were empty. There were about ten of us on the train to Vršac. We arrived at the Vršac Railway Station, one of the few in Vojvodina that is in good condition. The stations we passed on the way to Vršac (Banatsko Novo Selo, Vladimirovac, Alibunar, Banatski Karlovac, Nikolinci, Uljma and Vlajkovac) resembled

Railway complex Jasenovo on the line Vršac-Bela Crkva

scenes from horror movies or the new version of the iconic film “Ko To Tamo Peva”. I have similar impressions from travelling by train to Sonta in the summer of 2018. I boarded the train in Novi Sad, which then passed through Futog, Gajdobra, Ratkovo, Odžaci, Karavukovo and Bogojevo, all having quite dilapidated stations. In Bogojevo, a village on the border with Croatia, features the spectacular Water Tower, a masterpiece of industrial heritage, which is completely neglected. Through my train window, I watched abandoned tracks and a verse from Arsen Dedić’s poem “Popodnevna Pjesma” (“The Afternoon Song”) sprang to mind – “A train rotted away during the black spring in Poland, near Russia..." Zlatko often talked about the huge and untapped tourist potential of the railway infrastructure in our country, from the Ranžirna Station in Novi Sad, which was designed by the Eiffel Studio in 1912, to numerous railbuses stranded in depots in Zrenjanin and Subotica, which could become a first-class tourist attraction. Unfortunately,

his opinion fell on deaf ears. In the past two years since the beginning of the pandemic, I have cycled around a third of the populated places in Vojvodina, many villages and almost all towns and cities. I would always visit the train station if there is one in every place and except in Kikinda and Vršac, every single station was in a dilapidated state – some non-functional, some completely neglected, full of rubbish, overgrown in vegetation, some were almost completely deserted, some had very few passengers waiting for the train. Due to the decades-long neglect and deterioration of railway traffic and infrastructure in Serbia, people simply fell out of the habit of travelling by train. On the other hand, Germany is expected to see a steady increase in rail traffic, which is considered to be the most environmentally sustainable transport. For example, Deutsche Bahn, a German company that manages rail transport in Europe's largest economy, said in 2020, that in January of that year (before the pandemic), 1.2 million more people used their

trains than in 2019. The trends are expected to continue after the pandemic finally subsides and passenger transport returns to earlier volume. The news that the company Serbian Railway Infrastructure Company started to dismantle 435 kilometres of the railroad (412 of them in Vojvodina), which were built 100 or more years ago by the Austria-Hungary Empire and the Kingdom of Serbs, Croats and Slovenes, went relatively unnoticed at first. Only the Vojvodina Railway Association responded with an open letter. Once the railroad is dismantled the following train routes will be abolished - Bečej - Senta, Senta Kanjiža, Sečanj - Jaša Tomić, Sombor - Bački Breg, Sombor - Ridjica, Vladimirovci - Kovin, Bečej - Vrbas, Zrenjanin factory - Vršac, Horgoš - Kanjiža, Karavukovo Bač, Petrovaradin - Beočin, Žabalj - Bečej, Čurug - Bečej, Kikinda Banatsko Arandjelovo, Sombor Apatin factory and Sopot Požarevački - Kostolac. Although it is expected that the railroad will be removed where it is no longer profitable, a former

CLICK TO GO  www.diplomacyandcommerce.rs

railway worker from Jaša Tomić, Nikola Dobrić, said in a statement for the Serbian Broadcasting Corporation (RTS) that the decision to sell the rails that make the railroad leading to Vršac, which was reconstructed more than two decades ago, came as a surprise. “The Zrenjanin-Vršac railroad is in perfect condition. I don't know who came up with the idea of removing and selling it. The bridge in Sečanj and the one in Konak on the Brzava River were both overhauled. So, most of the railway is good. It would be easier to maintain it than sell it for virtually nothing,” Mr Dobrić said for RTS. The locals from Jaša Tomić and Sečanj secretly hoped that the local railroad would continue to be in use. "If we can make a railroad for the Šargan Eight train, why we couldn't do the same for the Sečanj-the state border route? And maybe even to Timisoara? That would be a tourist attraction!" says Spaso Mladenovski, a local chronicler of the Jaša Tomić village. However, the Serbian Railway Infrastructure Company expects that the sale of the old railroad will result in development: "Apart from the significant revenues that the Serbian Railway Infrastructure will generate in this way, the old infrastructure and railroads will be removed, many of which have not been used by trains for decades, which facilitate faster and better development of local governments in Vojvodina," the company said in a press release. The relevant public call envisages the sale of 19,500 tonnes of old railroad parts, 1,370 tonnes of various parts for switches and 3,755 tonnes of old track accessories,

Bogojevo water tower

Odzaci Kalvarija station

which is a total of 24,625 tonnes of scrap iron and steel. Milan Vučinić, president of the Vojvodina Railway Association, claims the gist of the problem in Vojvodina could be likened to the ‘boiling frog syndrome’: "Namely, the process went unnoticed from 1990 to 2000 when the following happened – the Vojvodinian branch of the state railway company was demoted in rank compared to the Belgrade one (ŽTP Belgrade), although ŽTP Belgrade only ranked fifth in terms of results (according to the railway statistics), i.e. staff and technology in Vojvodina’s branch were both demoted. The funds were also transferred to ŽTP Belgrade, so the Vojvodinian branch could no longer use them. The staff also changed a lot, and people who were close to the ruling political party were given jobs in the company." According to him, 100km of high-voltage cables were taken from Vojvodina in that period,

Vlajkovac railway station

which were supposed to be used for the electrification of the Subotica-Sombor-Bogojevo railroad (this railway remains unelectrified to this day), only to be later used on the Čačak-Kraljevo railroad. We don’t know where 30km of new rails were taken, that were supposed to be used for the reconstruction of the Banatsko Milioševo-Novi Bečej railway. Computer systems from Novi Sad and Subotica, hundreds of passenger and cargo train cars, as well as locomotives were also taken away. As a result, international trains (to Trieste) and domestic long-distance trains no longer departed from Novi Sad to Sarajevo, Ploče, Zagreb, Ljubljana, Skopje, Split (during the summer season), Bar, etc. "Because of everything aforementioned, railway traffic was made very difficult, there was a lack of trains, the timetable became irregular and trains failed to show up, which caused great distrust of passengers and compa-

nies that caused an aggravated situation in transport," Mr Vučinić concludes. A hundred years ago, Vojvodina had one of the densest railway networks in Eastern Europe, and people often like to say that we haven’t even managed to paint what the Austro-Hungary Empire built, which is mostly true. When it comes to the railway, the situation is even worse. Only 29 years after Great Britain started using trains, the first railroad in Vojvodina was officially inaugurated in 1854, in South Banat, connecting Oravica in today's Romania and Bazijaš (on the Danube) to Jasenovo and Vračev Gaj in the Serbian part of Banat. This railroad would have been built even earlier if it had not been for the 1848/1849 Revolution. Last month, I was in Bela Crkva and visited the train station there. According to the timetable from 1857, it would take me just 24 hours to get from Bela Crkva to Vienna. The station there has been completely neglected for the past 15 years, its walls are strewn with graffiti, and homeless people and migrants on their way to Europe occasionally stay in the former waiting rooms and the station chief's office. The Mokrin railway station, which we visited in October last year, looks similar to the one in Bela Crkva. The Orient Express passed through it in the 19th century. Mokrin was once the largest village in Yugoslavia (40 years ago, it had a population of about 12,000, while today it is less than 5,000) and it got its railroad back in 1857. The Orient Express used to stop here so its steam engines

Mokrin railway station

could take up water because the Mokrin artesian water was considered "the softest" "on the train’s route from Paris to Constantinople. Instead of the passengers of the luxury train, migrants now sleep in the waiting rooms of the Mokrin station. According to Vučinić, at the end of 1912, the main feature of the railway network in Vojvodina, was that it was a ‘capillary’ type of network and consisted of state and privately run lines (both average width railroads and narrow ones) and it was properly maintained until the early 1960s. In 1918, Vojvodina "brought" 1,953km of railways into the new state - 589.6km of state-run railroads and 1,295.3km of privately run ones, of which only 59.7km had narrow rails. “In the new state, the prevailing concept was to build railroads in the east-west direction, and not as before in the north-south direction. In Vojvodina, 15 joint-stock companies operated private railroads which were subsequently nationalized, and that process was completed in 1931. In that period, another 154km of railways were built in Vojvodina, but not enough was invested in the existing network - some railways and junctions were overloaded, railroads were congested, both compa-

Futog station

Glozan Petrovac station

nies and passengers were at loss and there was no money for regular maintenance, nor any investments in improving the railway traffic. There were also problems with railway staff caused by the dismissal of old staff and the arrival of new staff, who were largely inexperienced," said Dragomir Jankov, a retired lawyer and one of the biggest experts on the railway in Vojvodina. In socialist Yugoslavia, starting in 1945, there were two periods when the Vojvodina railroads were managed from Belgrade - the first that lasted from 1965 to 1976 and the second from 1990 onwards. "Both periods are characterized by looting, dismantling and abuse of assets. It was devastation, almost deliberate destruction of the Vojvodina railway and degradation of its staff. Nowadays, this kind of behaviour is much more pronounced than before 1976," claims Mr Jankov. Based on the Socialist Federal Republic of Yugoslavia’s Constitution from 1974, the republics and provinces became independent and at the federal level, they all had the rights of a republic. Eight railway-transport organizations and companies were formed at that time, one of which was ŽTO Novi Sad. This company had competencies regarding the overall railway infrastructure on the terri-

Kovin railway station

tory of the Autonomous Province of Vojvodina, including the management of the main railroads and rail corridors. The Yugoslav Railways’ statistical data from that period indicate that, out of 8 republic and provincial railroad companies, ŽTO Novi Sad occupied second or third place (behind Slovenia and Croatia respectively), during the 15-year-period. More precisely, in 1989, ŽTO Novi Sad transported 16.5 million passengers, loaded/unloaded 14 million tonnes of cargo and had 13,600 employees in total. In 1990, the Vojvodina Railways Company (Železnice Vojvodine) was closed and incorporated into the Railways of Serbia Company. When Gerhard Burbah, the legendary director of Vojvodina Railways, died early this year, we were reminded of how powerful and organized that system was three and a half decades ago. In his interview with the Press newspaper in 2011, Burbah stated that the railway infrastructure in Vojvodina, which was reputed to be the most developed in the former state, was brought to the brink of collapse in the last 20 years once it started to be managed by the Serbian government. Burbah illustrates this fact with the example that at the time when the province controlled the railway, the train from Belgrade to Hungary travelled 3.5 hours, and now it takes it over four hours just to get to Subotica. According to him, in the decade and a half when Vojvodina had the jurisdiction over the railroads on its territory, over 10,000km of the railroad was built, including numerous new routes, which connected the province with neighbouring countries. Many train cars had air-conditioning and trains could develop speeds of up to 200km/h. Mr Burbah also pointed out

that in those 15 years, about 540 million dollars were invested in the railways of Vojvodina. "Few people know that, in 1922, trains in Serbia went faster than today, and that Vojvodina, at the beginning of the last century, had perhaps the densest railway network in Europe. This, of course, was eroded and neglected throughout history and various countries and systems that ensued. In 1974, the railroad was completely overhauled mostly thanks to the Vojvodina government, the Vojvodina Assembly and the citizens who contributed to this dramatic development," Mr Burbah said in the interview. However, since I was born in Bač and our house was located right between the local railway and bus stations, I remember that the railbus that went to Bačka Palanka and Odžaci stopped running in the 1980s. Namely, we used only buses to go to high school in Bačka Palanka in 1986 and 1987. According to Dragomir Jankov, as early as 1986, i.e. two years before the so-called Yogurt Revolution, those railroads or parts thereof that were insufficiently profitable were closed, either through suspension of traffic or by turning them into reloading tracks, while some of them were dismantled after a certain number of years. At its session on October 8, 1986, ŽTO Novi Sad’s Workers’ Council made the following Decision - the company was ordered to make a decision on the writeoff of fixed assets (rails, lower and upper machine facilities with SS and TT plants, buildings and land) and deletion from the accounting records of the following lines - Bač - Bačka Palanka (20.4km), Gajdobra - Kula (28.6km), Odžaci-Crvenka (22.6km), Subotica Hospital - Crvenka (57.6km), Žednik - Čantavir (8.0km), Karavuko-

CLICK TO GO  www.diplomacyandcommerce.rs

Railway station Bačinci

vo - Sonta (19.0km), Sonta - Apatin factory (2.9km), Odžaci - Sombor (33.7km), Kovačica - Samoš (20.9km) and Čot - Samoš - Seleuš (4.1km) – a total of 257.8km of railway. Mr Jankov says that that decision was not fully implemented at the time. Traffic was suspended on most of the railway, but, most importantly, corridors and railway routes remained open, contrary to the aforementioned Decision of the Workers' Council. On the other hand, the official state statistics show that much more has been done on the state level in terms of repairing and building new railroads in the past 10 years than was the case before. From 2007 to 2012, 31km of railways were reconstructed, while from 2012 to date, that stands at 750km. From 2007 to 2012, no new railroads were built, and from 2012 to date, a total of 302km have been built. Again, if we look at the nature of these overhauls on Vojvodina’s territory, they were done exclusively on international rail routes leading to Zagreb, Budapest and Timisoara, which will not make life much easier for people in Vojvodina who live in smaller places, far from these three international corridors. An analogy pops up here - the Principality of Serbia was practically ordered to build the Belgrade-Niš railway at the Berlin Congress, while the Ottoman Empire built the railway from Skopje to Kosovska Mitrovica ten years earlier - in 1874. Experiences of developed countries (and this was the case in Vojvodina until 40 years ago) show that a good capillary network of railways is crucial for stopping people from moving from rural areas and smaller towns to large cities such as Novi Sad and Belgrade. There was a long-running case in the United States from the mid-

1930s to the 1950s when General Motors was accused of bribing mayors and governors across the country, "encouraging" them to remove tram lines as allegedly "obsolete technology" in order to boost the sale of General Motors cars and buses. So many cities that used to live the European way of life (trams, pedestrian zones, parks) became alienated places where people do everything from their cars - they commute to work, get fast food at McDrive, refuel and return home. All this has caused an increase in the percentage of obese and anxious Americans, a problem that this nation is still facing today. There have been initiatives to turn part of these rail routes, such as the one between Petrovaradin and Beočin, into bicycle paths, which would at least partially mitigate the damage and enable environmentally sustainable travel between populated areas. However, Milan Vučinić claims that there is no sense in dismantling that railroad because it could be used for light suburban trains that would relieve the road traffic between Novi Sad and Beočin. Also, there is enough room to build a bicycle track next to it. Dragomir Jankov adds that when it comes to the future of the railway in Vojvodina, there is still a "light at the end of the tunnel" if there is sufficient political will. "The Serbian Constitution from 2006 stipulates that Vojvodina can manage regional and local railway traffic. However, the Law on the Autonomous Province of Vojvodina’s Competences stipulates that the only right that Vojvodina has is to carry out railway traffic inspections, which means that the law practically circumvented the Constitution. I firmly believe that Vojvodina could (again) muster enough strength to overhaul or at least preserve its railroads, even

with the modest support from the state," concludes Mr Jankov. The day after the editor-in-chief of NIN weekly asked me to write this article, I took my family by train from Nice to Monaco. The train journey between these two cities takes an average of 26 minutes. The price of a oneway ticket is 4.10 euros, i.e. 16.40 euros in total for the four of us. The train station in Nice has been located in the downtown area since its opening in 1865. It took us 15 minutes to get from the hotel located on the English Promenade to the station. In Monaco, it took us 10 minutes to get to Casino Monte Carlo from the station. That day I wrote a post on my social media which said: "Here is my well-intentioned advice to Srbijavoz - lower the price of tickets on the Belgrade-Novi Sad line to 450 dinars in one direction, at least for the first year of operation until passengers get used to using trains again. The price of 1,000 dinars for a one-way ticket to Prokop, from which you then need to take a taxi to get anywhere in Belgrade, is too steep (just to leave the station, the taxi driver will charge you 250 dinars and an average taxi ride in Belgrade will set you back between 500 and 2,000 dinars minimum.) It is better for the state to subsidize tick-

ets for a certain period when so much money has already been invested in the new railway and new trains than to do all of this for the sake of doing something and not having a sufficient number of passengers as it is more affordable for them to take a shuttle taxi (from Novi Sad to Belgrade).” Two days later, President Aleksandar Vučić issued the following statement: "Our idea is to lower the ticket price as much as possible, i.e. for the ticket to cost between 300 and 400 dinars for at least a few months, so that people can get used to taking trains again because we are already subsidizing the railways. We want people to see for themselves what we have built and maybe they will be happy with that.” Or it may be that the President had read the well-meaning advice posted on Twitter and made a wise decision. Or it may be that one of his associates, line ministers or directors gave him such advice, as they are paid to do so. This is possible, but, unfortunately, highly unlikely. The fast train had its maiden journey on March 19th, the price of a one-way ticket is 300 dinars during the ‘promotional period’ and I hear that the train is full in both directions. I am glad that the President listened to me.

Bela Crkva railway station

Blind track

CULTURE NEWS

KOLARAC

Programme

Thursday, 19th at 20.00 Concert Hall 23TH GUITAR ART FESTIVAL

RTS SYMPHONY ORCHESTRA

Fado & Flamenco concert Sara Correia & Tamara Jokić Production: Guitar Art Festival

Aleksandar Kojić, conductor Saša Mirković, viola Programme: Musorgsky, Airat Rafailovich Ichmouratov, Galzunov Production: RTS Music Production

Sunday, 22nd at 11.00 Concert Hall BELGRADE PROM`S

Thursday, 26th at 20.00 Concert Hall MUSIC IS DANGEROUS

Djordje Milošević, cello Bojana Dimković, piano Programme: Marin Marais, L. V. Beethoven, R. Schuman, M. Milojević, M. Stojadinović Milić, H. Villa Lobos Production: Music Centre

Concert of the Italian pianist and composer, winner of the Oscar for music in the film "Life is Beautiful" (La vita è bella), Nicola Piovani with sextet. Production: Italian Cultural Institute and Kolarac

www.bgf.rs

Monday, 23rd at 20.00 Concert Hall KATA STOJANOVIĆ,

Friday, 27th at 20.00 Concert Hall BELGRADE PHILHARMONIC ORCHESTRA

Saturday, 28th at 11.00 Concert Hall HOW TO LISTEN TO THE CONCERT/ VIOLIN

violin Uki Ovaskainen, piano Programme: Schnittke, Tchaikovsky, Prokofiev Production: Music Centre

Tuesday, 24th at 20.00 Concert Hall

Conductor: Gabriel Feltz Peter Moore, trombone Programme: J. Dove, Rachmaninov Production: Belgrade Philharmonic More information: 0112630744,

Small School of Bonton Host Miloš Milovanović Music Studio Cinderella Production: Music Centre

Sunday, 29th at 11.00 Concert Hall

CHAMBER ORCHESTRA 13 STRINGS Conductor: Srdjan Sretenović Dušan Panajotović, violin Programme: Schnittke, Jevtić

Monday, 30th at 20.00 Concert Hall YOUR WORLD MUSIC/ BEETHOVEN'S PIANO SONATAS Aleksandar Madžar, piano Production: Music Centre

CLICK TO GO  www.diplomacyandcommerce.rs

 MODERN A-CLASS OFFICE BUILDING  8,300 M2 OF GLA ON 9 FLOORS  PRIME CITY LOCATION  TAILOR MADE INTERIOR DESIGN SOLUTIONS  PREMIUM RETAIL OFFER