Critics are Making Me Puzzled

by Jelena Grujic

On June 30th, the European Committee adopted the 'white list' of 190 companies from Serbia which are eligible as business partners with EU countries. Other Serbian companies are on the 'black list' and any co-operation with them is treated as unacceptable, since they are 'connected with the Belgrade regime due to which they are still under the EU embargo'. The expert for foreign investment, Dr. Milan R. Kovacevic comments this exemption - which, as it was emphasised, will be subject to changes - for VREME.

'With the alterations of the EU decree announced in April, more precise sanctions which predict the freezing of money both of the state and of state companies of Serbia. It is the first time, however, that some Serbian companies are exempt from the 'black list', instead, they are placed on the list, popularly known as 'white list'. Among the big ones, there are: 'Tehnogas', 'Tetrapak', 'Societe General Banka' and so on. 'Tehnogas was sold to the German company with 60% of its capital, and it was obvious that the latter's interest brought the former among those exempt companies. It is similar with 'Tetrapak', the investor of which was a Swedish firm. We can conclude that a higher degree of foreign investment on our territories might serve as a defence mechanism from the current sanctions.'

VREME: The 'white list' somehow 'united' the regime and the opposition, at least those are the negative estimations. How does it seem to economists?

KOVACEVIC: I cannot accept the criticism of the companies, since it is only a first step towards the entire removal of sanctions, which is something that everyone aims at.

Many of them made no endeavour to have their names appear on the 'white list'. There are rumours that it is not good to be on the 'white list'. There is fear of possible domestic sanctions against those who get rid of the foreign ones. A true confusion. A partial removal of sanctions of at least some companies was attacked at each corner in Serbia. Maybe some of them prefer it to be even worse than it is now.

The sanctions are, of course, counterproductive on the whole. But, closing Serbia from without helps those who wish the same from within in favour of preserving the bad system. Therefore, it is strange that some parties, especially the democratic ones, are against apt to that kind of criticism. It is time to understand the need to reconcile with the world, both economically and to make use of the world market of capital and goods for our own development. We are facing a painful transition and radical changes. The removal of sanctions, at least gradually, is an important step in opening the domestic economy and its more efficient functioning.

What will be the effects of clear division among companies in Kosovo, Serbia and Montenegro?
Kosovo and Montenegro are exempt from sanctions, but with the ultimate change of EU decree, there is a possibility that even there some companies may be found on the 'black list', in order to penalise some of them. Such performance is in accordance with the explanation that the sanctions against Serbia are actually directed towards the actual regime, while it is accepted that Montenegro stepped onto the road of liberalisation and democratic development. Accordingly, all future plans of Serbia contain only one thing - to change the regime, after which there will follow the removal of sanctions and the inclusion of Serbia in current European standards.