Nine months have passed since the ban on Serbian goods - a political decision that resulted in losses for everyone

Instead of Serbian goods on the shelves of stores in Serbian communities in Kosovo, there are lower quality, often more expensive products available. Pharmacies lack medicines from Serbia, and since June last year, the Serbian economy has suffered losses exceeding 200 million euros. All of these are consequences of the ban on importing goods from Serbia, a measure imposed by Pristina exactly nine months ago. International companies with production facilities in Serbia are also affected.

Citizens from both the north and south do not hide their bitterness - they are forced to buy low-quality groceries, the turnover in stores selling food has decreased, and there is fear that small businesses will eventually shut down.

Adding to this is the ban on using the dinar.

Aleksandar Radovanovic, Head of the Center for Regional Cooperation at the Serbian Chamber of Commerce, estimates that according to the Serbian Chamber of Commerce, by January 1st, the total damage from undelivered goods amounted to around 160 million euros.

"If we were to add these two months from this year, it would be more than 200 million euros," Radovanovic said for Kosovo Online.

The ban, he recalls, is only in effect for finished products, as Pristina revised the initial decision from mid-June 2023, by lifting the ban on July 8th for raw materials, machinery, fertilizers, and some other semi-finished products due to problems that arose in the supply chain of Kosovo's manufacturing sector. They realized, he says, that they were causing great harm to their economy.

"All major global systems that have invested in Serbia and have their production facilities are suffering significant losses. Just take 'Coca-Cola,' for example, which is a major supplier. They incurred huge losses due to the inability to sell their products on the Kosovo market, and they had to redirect their supply from other centers, specifically from North Macedonia," Radovanovic notes.

He points out that a very negative atmosphere is being created as if it is undesirable for companies from Serbia and Kosovo to cooperate, but that is not the case.

"Interest between businessmen exists. There is also trust, so this measure is not in line with what business communities want. We are in daily communication with the Chamber of Commerce of Kosovo," Radovanovic says.

However, the possibilities for the Chamber of Commerce of Kosovo to help lift the ban, as he says, are limited, adding that it was not consulted when the measure was introduced.

"Probably partners who assist in the dialogue between Belgrade and Pristina could help, primarily I mean the European Union and the United States. We invite them to somehow enable normal functioning of trade between Serbia and Kosovo," Radovanovic says.

Agim Shahini, President of the Alliance of Kosovar Businesses, tells Kosovo Online that Pristina's decision to ban imports from Serbia, which has been in effect for nine months, affects Serbian citizens the most, as they are left without products from Serbia and are forced to consume products from Kosovo or other countries because every citizen wants to consume products from their own country.

"The goods we used to import from Serbia are now being imported from North Macedonia, Albania, and other countries, while domestic producers who use raw materials from Serbia can import them without any problems. The Kosovo economy has not incurred losses because products from other countries have been found. There is a wide range of products, including Serbian ones produced in Macedonia and imported to Kosovo. Transportation costs have slightly increased, but consumers can find everything they need. Some items may be a bit more expensive than before, although prices are high everywhere, so it is not very noticeable," Shahini says.

He cites data showing that the import of goods from Serbia was over 372 million euros in 2022, dropping to 198 million euros in 2023, a decrease of over 173 million euros.

"According to these statistics, Serbia's economy suffers the most because it has lost a good partner, Kosovo. Also, Serbia is now Kosovo's ninth trading partner, whereas before this measure, it was the fourth. Similarly, Kosovo had exports to Serbia of over 60 million euros in 2022, and now it's around 48 million euros, a decrease of 12 million. In this entire process, everyone has suffered economically, and politically even more, because Kosovo and Serbia cannot reach the end of the dialogue, and we have sanctions because of the dialogue," Shahini believes.

He recalls that the ban on Serbian imports followed the arrest of three Kosovo police officers and was a kind of retaliation against the Serbian authorities. While the Kosovo authorities justified the ban on security grounds, Shahini believes it makes sense politically but not economically.

The explanation of the ban by Kosovo officials citing security reasons, according to the assessment of the President of the Association of Serbian Entrepreneurs from Gracanica, Sasa Sekulic, is absurd, especially considering that the ban was quickly lifted for raw materials imported from Serbia, while it remained in place for finished products.

"It is then logical to ask: how is Kosovo still importing raw materials for further production that are not considered a security threat, while finished products like 'Jaffa Cakes,' 'Honey Heart,' or 'Rosa' are deemed dangerous?" Sekulic said for Kosovo Online.

He points out that the decision made by Pristina was political and that many Albanian analysts also disagreed with it. He notes that the American Chamber of Commerce appealed for a review of the decision, while the Chamber of Commerce of Kosovo demanded its repeal.

As he emphasizes, the consequence of all this is that the citizens of Kosovo have received lower-quality products at significantly higher prices, by 20 to 30 percent.

"Small businesses certainly suffer, especially Albanian ones that represented major brands coming from central Serbia; they have incurred significant losses," Sekulic said.

The ban, which was imposed on June 14 last year, initially applied to the entry of trucks from Serbia to Kosovo, and the Government in Pristina justified it on "security grounds" because Serbian police arrested three Kosovo police officers. The decision, as stated at the time, would be in effect until a new security assessment was made. Very soon, at the beginning of July, the ban on raw materials was lifted, while it remained in place for finished products. Kosovo police officers were released from custody in Serbia on June 26, when the Court in Kraljevo confirmed the indictment against them.