AGP Executive Report

Energy & Sanctions: OFAC extended NIS’s operating licence to July 31 (with further time for MOL to keep negotiating the Russian stake), keeping Serbia’s Pancevo refinery running while the long-term ownership solution remains unresolved. Construction & Infrastructure: PowerChina applied for a temporary permit to build a ~2km tunnel link between the Sava and Danube slopes in Belgrade, following earlier expropriation steps; meanwhile Serbia’s Ministry announced an international tender for 3-year framework agreements to rehabilitate local roads worth about EUR 281m. Industry Expansion: Metal Investments Europe is seeking approval for an aluminum wire production complex in Majur near Šabac (up to 54,000 tons/year capacity mentioned), and EPS received approval to reconstruct HPP Vrla 2 units and equipment (about EUR 15.5m). Manufacturing & Jobs: Ball Corporation marked two decades in Serbia, with its Belgrade plant supplying global beverage packaging markets and continuing investment in technology and sustainability. Local Business Climate: Serbia’s new Trading Practices Act targets unfair retailer-supplier-producer practices, aiming for more predictable rules and new enforcement powers for the competition authority. Workplace Pressure: Protests in Niš Industrial Zone are planned over claims that Yura’s air conditioning is not working during extreme heat. Urban Development: Location requirements were issued for relocating the Nikola Tesla Museum to the Milan Vapa Paper Mill site, with renovation and conversion plans moving ahead. Digital & Consumer Trust: Authentix highlights Serbia as a regional example for anti-counterfeit and traceability tech supporting fuel, pharma and consumer supply chains.

Industrial Safety & Labour: Niš residents plan to block a roundabout in the industrial zone near Yura on 8 July, alleging air-conditioning failures and demanding repairs within two days. Energy & Border Policy: The European Commission says it’s working to limit disruption from the EU Entry/Exit System, after airlines and airports warned they want the system suspended during peak July-August travel. AI & Innovation: Serbia’s foreign minister says Belgrade will host AIability 2026 as an annual conference, pushing responsible AI via science diplomacy, parks and the State Data Centre. Mining & Exploration: MinRex strengthens its Serbia team for the Tlamino gold project, appointing an exploration manager and a general counsel as drilling continues. Trade & Industry Links: Serbia’s merchandise trade shows the EU at 58.3% share in the first five months, while CEFTA delivers a large export surplus. Manufacturing Market Access: Haizol’s Supplier Discovery Tour brought Serbian buyers to verified Chinese factories for custom parts, including CNC, injection moulding and precision assembly. Business & Workplace Culture: Mercuryo earns Great Place to Work certification in Serbia and four other European markets. Food Production: Pek-Snack reports 2025 profit up 5% and continued export growth across regional markets including Serbia.

AI & Innovation: Serbia’s foreign minister Marko Đurić closed AIability 2026 in Belgrade, saying the country aims to be a regional leader in responsible AI via science diplomacy, innovation and cooperation, with the event planned as an annual platform. Trade & Industry: Serbia’s merchandise trade hit €31.24bn in the first five months of the year, with the EU taking 58.3% of trade; CEFTA delivered the biggest trade surplus, led by cereals, petroleum products, road vehicles, beverages and pharma. Energy Security (NIS): The US OFAC extended NIS operating licences again, keeping Serbia’s Pancevo refinery running while MOL and Gazprom Neft talks on the Russian stake continue, with deadlines pushed to end-July. Mining & Metals: MinRex added in-country leadership for its Tlamino gold push, appointing an exploration manager and general counsel as drilling continues. Resources (Rare Earths): VHM surged on a partnership with Iluka for Goschen rare earths and mineral sands, including offtake and funding support feeding Iluka’s Eneabba refinery. Industrial Safety: Linglong’s Serbia tyre plant in Zrenjanin reported a worker death while fixing a tyre manufacturing machine, with prosecutors to issue a final decision. Regional Outlook: A Vienna Institute forecast cut Albania’s growth and revised Serbia’s 2026 outlook down to 2.0%, flagging weaker expectations across the Western Balkans.

Energy & Sanctions: The US OFAC extended NIS’s operating licence for 30 days, keeping Serbia’s Pančevo refinery running until July 31, while MOL’s deadline to finalize talks to buy the Russian-majority stake was also pushed to July 31—Serbia’s energy minister says all sides are “losing patience” but that there have been no supply shortages. Oil Infrastructure: JANAF’s US licence to supply feedstock to NIS was extended to July 31, supporting continued crude imports and contractual obligations during the ownership transition. Industrial Safety: A worker died while fixing a tyre manufacturing machine at Linglong’s Serbia plant in Zrenjanin; the Public Prosecutor’s office says it will publish its final decision later. Mining & Metals: Minrex Resources advanced infill drilling at the Barje deposit within the Tlamino gold project in southern Serbia and dispatched the first core samples to a lab in Bor, with results expected in 3–4 weeks; Ausenco was appointed to run metallurgical testwork. Manufacturing & Rail Tech: Škoda Group reported 2025 orders of about €1.8bn and doubled EBITDA to €143m, with growth tied to battery-powered and hybrid trains as electrification expands. Business & Telecom: Magenta Telekom appointed Nemanja Žilović as Chief Commercial Officer B2C from August 1, aiming to deepen residential digital offerings.

Sanctions & Energy Security: The U.S. extended NIS’s sanctioned operating licence for 30 days, now to July 31, letting Serbia’s Pancevo refinery keep processing crude while MOL and Gazprom complete the sale of the Russian-controlled stake. Mining & Development: Minrex Resources advanced the Tlamino gold project in southern Serbia with 12 infill diamond holes at Barje (1,224.5m), first lab sample batches sent to Bor, and metallurgical testwork led by Ausenco to derisk the processing pathway. AI & Industry Policy: Serbia’s foreign minister said the country is treating AI as a systemic development priority, pointing to the AIability 2026 conference and initiatives like the BIO4 Campus and a national AI platform in Kragujevac. Telecom & Consumer Services: Magenta Telekom appointed Nemanja Žilović as Chief Commercial Officer for B2C from August 1, aiming to push residential digital offerings. Regional Business Links: Serbia’s Deputy PM and Economy Minister met Guangdong MingYang Electric on high-voltage transformer and power equipment partnerships. Wildlife & Trade Risks: A Serbian-tracked eastern imperial eagle, Feliks, returned after a cross-border rescue from illegal poaching and trafficking, underscoring ongoing pressure on protected species.

Serbia’s AI Push: Deputy FM Marko Djuric says Serbia is a regional AI leader after adopting a systemic approach since 2019, with an AI strategy to 2030 and projects like BIO4 Campus and a national data centre in Kragujevac. Energy & Industry Links: Deputy PM and Economy Minister Adrijana Mesarovic met China’s Guangdong MingYang Electric to deepen high-voltage transformer and power equipment partnerships, aiming for new tech, investment and jobs. Defense Modernization: Serbia’s 15th Tank Battalion trained with modernized M-84 AS1/2 tanks in tactical and live-fire drills focused on breakthrough operations, turning upgrades into battlefield readiness. Consumer Finance: MTS launched instant money transfers to Serbia via its My MTS app, with cash pickup through partner exchange offices. Social Spending: President Aleksandar Vucic unveiled a €600mn pre-election package of salary and pension rises plus one-off payments and tourism vouchers. Wildlife & Trade Risk: The eastern imperial eagle “Feliks” returned to Serbia after a cross-border rescue from illegal traffickers, spotlighting the profit-driven wildlife trade.

Defense Modernization: Serbia confirmed it will buy China’s HQ-9 long-range air defense system, making it the first European operator of the missile system and boosting layered protection against aircraft, drones and cruise/ballistic threats. Elections & Fiscal Support: President Aleksandar Vucic says Serbia’s elections will be held within 3–4 months and announced a €600mn pre-election package of salary and pension rises plus one-off payments and tourism vouchers. Heat & Worker Safety: A new wave of extreme heat is forecast across Europe, with Serbia warning outdoor workers of health risks; employers must reorganize shifts, provide water and shade, and workers can refuse unsafe work. EU Accession Pressure: The EU warns Serbia could lose over €1bn in funding over democratic backsliding as it pushes to open another accession cluster tied to competitiveness and industrial policy. Media Freedom Watch: The EU’s Media Pluralism Monitor flags deteriorating journalist working conditions, with Serbia among the worst performers on protection and working conditions. Energy Infrastructure: Hungary is reviewing financing for Paks-2 and the Budapest–Belgrade railway project, while secrecy on the rail documents has been lifted to enable passenger services after safety testing. Industry/Construction: Belgrade’s retail expansion continues, with a new Rosauer’s supermarket opening and more retail projects under construction nearby.

Media Freedom Watch: The EU’s Media Pluralism Monitor 2026 flags worsening journalists’ working conditions across Europe, with Serbia among the worst performers on protection and risk levels. EU Accession & Industry Policy: As Serbia pushes to open the next EU negotiation cluster, Brussels warns it could withhold over €1bn in funding tied to democratic backsliding—an issue that also touches competitiveness and industrial policy. Defense & Procurement: Serbia confirms it will buy China’s HQ-9 long-range air defense system, positioning Belgrade as the first European operator and deepening defense-industrial cooperation. Construction & Infrastructure: Belgrade Waterfront gets a building permit for a major residential and business complex on the former BAS site, while Serbia also forms a working group to assess a Valjevo–Bijelo Polje rail reconstruction offer from Sinohydro. Energy Projects: EPS moves ahead on RHPP Bistrica with land for access/service roads, supporting Serbia’s push to expand power storage. Energy Costs: Serbia raises fuel excise duty by about 5.5% for one week starting Monday. Labor & Agriculture: Raspberry harvest season is drawing seasonal workers from southern Serbia, with daily wages starting around 5,000 dinars. Public Safety: A heatwave is driving dangerous temperatures across Serbia, with authorities issuing warnings and cooling guidance. Civic Pressure: Student-led protests continue after Vucic’s resignation pledge, with crowds rallying in Kraljevo and broader political uncertainty ahead of elections.

Extreme Heat & Wildfires: A record-breaking heatwave is pushing deeper into the Balkans, with Serbia facing warnings around 39°C and red alerts across several countries as wildfires flare in the region. Steel Output Watch: World Steel Association data shows May 2026 crude steel production at 157.9Mt globally, down 0.3% year-on-year, with Serbia listed among “Europe, Other.” Energy Transition Rules: The Energy Community Regulatory Board argues Serbia and neighbors need clearer frameworks for “active customers” (prosumers) to unlock flexibility and storage as renewables scale up. Rail & Infrastructure Procurement: Serbia formed a working group to assess Sinohydro’s offer for the Valjevo–Vrbnica–Montenegro border rail reconstruction, preparing contractual documentation. Hydropower Project Moves: EPS is set to get land for access roads tied to the RHPP Bistrica and HPP Potpec reversible hydropower system. Urban Development Permit: Belgrade Waterfront received a building permit for a residential and business complex on the former BAS site, with construction planned in phases. Fuel Costs: Serbia increased fuel excise duty by about 5.5% for a one-week period starting Monday. Politics With Industrial Impact: Protests in Kraljevo and across Serbia follow President Vucic’s resignation pledge, raising uncertainty for major projects and investment planning.

Serbia Politics: President Aleksandar Vucic says he will resign within weeks and trigger early presidential and parliamentary elections, after 18 months of student-led anti-corruption protests sparked by the 2024 Novi Sad railway station awning collapse that killed 16 people. Defense & Industry: Vucic also points to Iran’s underground defense model as Serbia expands drone capabilities, saying it will build underground shelters and storage for weapons and systems, alongside plans to manufacture tens of thousands of drones. Air Defense Watch: Serbia is cited as operating four FK-3 (HQ-22 export) air-defense batteries, highlighting how hard-to-make missile systems depend on domestic radar and interceptor know-how. Energy & Climate Risk: Europe’s record-breaking heatwave is spreading east, with Serbia named among affected countries, raising concerns for public health, infrastructure and agriculture. Local Infrastructure: A report on safe drinking water access maps where clean water remains out of reach, underscoring the scale of infrastructure gaps beyond Europe’s high-access areas.

Serbia Politics: President Aleksandar Vucic says he will resign within weeks and trigger early presidential and parliamentary elections, amid 18 months of student-led anti-corruption protests sparked by the 2024 Novi Sad railway station canopy collapse that killed 16 people. Infrastructure & Accountability: Protesters and rights groups link the disaster to wider mismanagement of construction projects and corruption—setting the tone for what voters will scrutinize next. Energy & Industry Pipeline: Vucic also points to new industrial and energy steps, including plans for data centers, hydropower and new gas power plants, plus a robot factory opening in August. Regional Context: Hungary’s government says it will reveal secrets around the Budapest–Belgrade railway project, while Serbia’s political shake-up raises questions about how major works are governed. Climate Pressure: A Europe-wide record heatwave is straining health systems and disrupting daily life, with Serbia named among affected countries.

Politics & Infrastructure: Serbian President Aleksandar Vucic says he will resign within weeks and trigger early presidential and parliamentary elections, after 18 months of student-led anti-corruption protests linked to the 2024 Novi Sad railway station canopy collapse—an event protesters cite as a sign of construction mismanagement. Rail & Transparency: Hungary-Belgrade rail project secrecy is being lifted as documents and Chinese loan terms are declassified, with freight already running and signalling tests underway ahead of passenger service plans. Energy & Sanctions: NIS, Serbia’s Russian-owned oil refiner, has applied for a new US sanctions waiver to keep operating after July 1, as it supplies up to 80% of the domestic market and seeks continuity while MOL negotiations drag on. Agri-Exports: Arilje’s raspberry sector is in focus again as producers warn that unpredictable weather and unstable purchase prices threaten a supply chain that ships berries to the US and Japan. Water Reliability: Belgrade reports operational issues at two municipal wells and repairs/testing plans, framing it as a public-safety response while assessing long-term groundwater reliability.

Energy Sanctions: Serbia’s NIS (Gazprom-owned) has asked the US OFAC for a new sanctions operating licence beyond July 1, warning that without it crude imports and refinery operations could be disrupted while ownership talks continue. Industrial Relocation: Kansai Helios says it will gradually move production from its Zagreb site to facilities in Slovenia and Serbia, phasing out Zagreb over coming years. Textiles Trade: ITM 2026 (with HIGHTEX) wrapped in Istanbul with 1,000+ exhibitors from 59 countries and nearly 48,300 professional visitors, signaling strong global demand for textile machinery. IoT Hardware: Quectel expanded its external antenna portfolio in Belgrade, launching new combined antennas aimed at smart cities, industrial automation, utilities, public safety and transport. Water Infrastructure: Belgrade declared a water system emergency after two municipal wells went offline; Well #8 repairs are funded and underway, while Well #5 needs further groundwater assessment. Health Tech: A new VR-plus-nerve-stimulation rehab platform (MultiSensy) is reported to improve stroke survivors’ arm/hand function and tactile/body awareness. Energy Transition: A geothermal-focused analysis highlights Central and Southeast Europe’s heating potential, including Serbia’s role via district heating networks. Cybersecurity: A new SharkLoader campaign targets multiple countries, including Serbia, using malware to deploy Cobalt Strike. Aviation: Air Serbia added another Airbus A320 to its fleet, supporting route network growth. Agribusiness: Arilje’s raspberry sector remains export-driven but faces uncertainty from weather swings and unstable purchase prices.

Industrial Reshoring: Kansai Helios Group says it will gradually move production from its Zagreb unit to existing sites in Serbia and Slovenia, with Zagreb output set to wind down over coming years. Aviation & Connectivity: Air Serbia adds another Airbus A320 to its fleet (YU-APV), boosting capacity and route flexibility. Energy & Industry Security: NIS has applied to the US OFAC for a new operating licence as its current sanction-linked authorisation expires July 1, citing energy stability and ongoing ownership talks. Cyber & Supply Chains: A new SharkLoader campaign is deploying Cobalt Strike via compromised systems, with targets including entities in Serbia among other countries. IoT Hardware: Quectel expands its external antenna portfolio in Belgrade with new multi-network combo antennas aimed at smart cities, industrial automation and fleet management. R&D Funding: Serbia’s 2025 budget research and development spending reached 42.4 bln dinars (+8.9%). Geothermal Outlook: A regional focus story highlights geothermal’s potential for Central Europe’s heating and energy security, including Serbia. EU Policy: The Commission is preparing a “membership-lite” approach for candidate countries, including Serbia, to unlock selected benefits before full accession.

Extreme Heat Watch: Europe is on high alert as a record-breaking heatwave spreads, with France reporting dozens of heat-linked deaths and Germany seeing road damage from buckling surfaces; Serbia is also affected as authorities brace for more casualties and disruptions. Belgrade Transport Upgrade: Belgrade’s subway project moves forward after a contract was signed for an independent international safety assessor to review system safety from design through testing and commissioning. Road Infrastructure Plan: The Belgrade City Assembly is set to start the long-awaited reconstruction process for the Pancevo Bridge, including new access ramps, with Roads of Serbia funding the detailed regulation plan. Aviation Expansion: Air Serbia adds another Airbus A320 to its fleet, aiming to boost capacity and further develop its route network. Renewables Investment: Chinese SANY begins construction of the EUR 240m Alibunar 1 and 2 wind farms, targeting 460 GWh of clean power annually by 2028. IoT Hardware Push: Quectel expands its external antenna lineup for smart cities, industrial automation, utilities, public safety and transport. Food & Farming Pressure: Serbia’s raspberry exporters face yield drops after sudden production declines, raising alarms in the “raspberry capital.” Media & Trust: Reuters Institute’s 2026 Digital News Report flags falling news trust and growing platformisation, with Serbia among Europe’s least-trusted markets.

Transport & Infrastructure: Belgrade is moving ahead on the long-delayed Pancevo Bridge reconstruction, with the City Assembly considering a decision to start a detailed regulation plan covering bridge works plus new access ramps, with financing handled by Roads of Serbia and documentation due within 12 months. Metro Safety: The Belgrade subway project signed a contract for an independent international safety assessor (TÜV Rheinland InterTraffic), covering checks from design and testing through commissioning and commercial operations. Energy & Renewables: Chinese SANY has started construction of Alibunar 1 and 2 wind farms in southern Banat, investing EUR 240m for 460 GWh of clean power annually by 2028. Power & Industry: EPS and SOCAR are set to sign a shareholder agreement for a Niš gas power plant joint venture, targeting completion by end-2030. Construction Materials: Holcim has taken over Xella Group and become the majority owner of Rapid Apatin, a major brick producer. Cybersecurity: A new malware campaign (“StrikeShark”) is targeting organizations worldwide, with confirmed victims including Serbia.