Even after the reactions from the European Union, the United States of America, business associations and the alarming data about the damage done, the goods originating in Central Serbia have not been able to cross into Kosovo and Metohija through the administrative crossings for two months now.
On June 14, Pristina banned the entry of trucks with Serbian license plates for, as explained, security reasons. This was a response to the arrest of three members of the Kosovo police, who were released pending trial in the meantime.
Trucks with Serbian license plates were then allowed entry, but the traffic of goods remained banned. Recently, things escalated, and Pristina canceled the certificate of the registration of 15 companies, including MTS, meaning that they can no longer operate there.
Bojan Stanic of the Sector for Strategic Analyses of the Chamber of Commerce of Serbia (CCIS) said on RTS that damage was being done to the economy and that the estimate was close to EUR 50 million regarding the unrealized shipments from Central Serbia to KiM.
Until July 8, he reminds, there was a ban on everything from Central Serbia, and then the entry of raw materials, semi-products, machines and equipment was allowed, except for final products for end-users in retail.
– The fact is that the damage is inflating, but at a lower intensity than before July 8. The territory of KiM suffers as well, especially since the economy is less developed – Stanic explains.
According to him, the economy is a rational thing, and the decision of Pristina is economically unrealistic and does damage to end-users in KiM.
Stanic also says that Pristina is replacing Serbian goods with goods from elsewhere in the region – from Bulgaria, North Macedonia, or Albania, which is more expensive after all.
He says that, last year, there was EUR 520 million worth of Serbian goods in KiM, whereas Pristina obtained goods worth around EUR 50 million.
– We have the experience of previous years, when the trade fully recovered. However, there were also boycotts of goods there, with informal campaigns. That didn’t negatively affect us – Stanic says.
Stanic says that this is a political decision, but expects the ban on Serbian goods in KiM to be lifted due to pressures from the EU.
– If the crisis ended tomorrow, there would be less damage compared to the previous blocking. It is, however, more damaging, because we don’t know how long it will last – concludes Bojan Stanic of the Sector for Strategic Analyses of the CCIS.
Illustration (Photo: ChameleonsEye/shutterstock.com)Illustration
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