- The Court Confirmed One Year of Imprisonment and Six Years of Ineligibility for Milorad Dodik
On August 1, the Appeals Panel of the Court of Bosnia and Herzegovina issued its decision in the case of the President of the Republika Srpska, Milorad Dodik, upholding the first-instance judgment and sentencing him to one year of imprisonment and six years of prohibition from holding the office of President of the RS.
Dodik was convicted for signing decrees enacting laws, adopted by the National Assembly of the Republika Srpska in 2023, under which the decisions of the High Representative in Bosnia and Herzegovina would not be published in the Official Gazette of the RS nor implemented.
Dodik characterized the verdict as an assault on the Republika Srpska and stated that he does not recognize a “criminal act” imposed by the High Representative of the international community, Christian Schmidt. In his words, “this is a political decision, and the Court of Bosnia and Herzegovina is a political court”.
Serbia did not recognize the decisions of either the first-instance or appellate courts of BiH in Dodik’s case. A session of Serbia’s National Security Council was convened in Belgrade, at which a resolution to that effect was adopted.
“These decisions of the courts of Bosnia and Herzegovina … are undemocratic, anti-civilizational, and immoral, deeply illegal, contravene fundamental democratic principles and tenets—from freedom of speech to respect for the will of people and people’s sovereignty and the legitimacy of people’s decisions—contravene the constitutional order of Bosnia and Herzegovina established by the Dayton Agreement, and constitute a serious political attack on the Serbian people in Bosnia and Herzegovina as well as on the Dayton Agreement,” President Aleksandar Vučić declared while presenting the National Security Council’s resolution.
The National Security Council emphasized that Serbia “will employ all diplomatic, political, and legal means at its disposal to support the Republika Srpska and its lawful and legitimate representatives”.
Vučić noted that Serbia is now facing its most difficult times since 2008 (when Kosovo declared independence) and that the key question is how it will all end, making important Serbia’s insistence on maintaining peace and regional stability.
Legal experts in BiH point out that with the second-instance verdict, Milorad Dodik can no longer perform the functions of President of the RS.
However, Dodik stressed that he will continue to fulfill his duties until he receives a decision from the National Assembly of the Republika Srpska (NSRS) on this matter and a clear plan for how to proceed.
- Former Ministers and Several Officials Arrested in Serbia in Connection with Novi Sad Station Canopy Collapse
On August 1, the Serbian Prosecutor’s Office for Organized Crime detained 11 persons on suspicion of corruption crimes related to the modernization project of the railway from Novi Sad to the Hungarian border. As part of this project, a three-year reconstruction of the Novi Sad railway station was carried out. Four months after the official opening, on November 1, 2024, the station’s concrete canopy suddenly collapsed, killing 16 people.
The Prosecutor’s Office announced that the detainees are suspected of causing a budgetary loss of USD 115 million through corrupt actions, and that the officials are also charged with abuse of office.
At the same time, they suspect that the consortium of Chinese firms CRIC&CCCC (China Railway International Co. Ltd and China Communications Construction Company Ltd), which is building the high-speed railway, “received illicit gain” amounting to at least USD 18.7 million. Serbian authorities concluded a contract with this consortium under an intergovernmental agreement between Serbia and China without a public tender.
Among those arrested was Tomislav Momirović, who at the time of the station reconstruction headed the Ministry of Construction, Transport, and Infrastructure. An arrest warrant was also issued for Goran Vesić, who served as Minister of Construction, Transport, and Infrastructure from October 2022 to November 2024, but he was not detained because he is hospitalized.
Several other officials of state institutions and private companies were also arrested.
Two days later, the Supreme Court in Belgrade ordered one-month detention for 13 suspects, including the 11 previously detained.
As is known, the tragedy at the Novi Sad railway station triggered a wave of mass protests across Serbia. Over the past nine months, hundreds of thousands of citizens, mostly young people, have taken to the streets demanding criminal and political accountability for those responsible for the canopy’s collapse. Protesters accused the authorities of poor construction quality due to corruption. After months of protests, citizens demanded early parliamentary elections, which the government categorically rejected.
Commenting on the arrests of former officials, Serbia’s President Aleksandar Vučić described the actions of the Prosecutor’s Office for Organized Crime as criminal behavior and emphasized that the arrest warrants for the former ministers were issued “without basis.”
Meanwhile, protests in Serbia continue.
- Serbia and Bosnia and Herzegovina Among the Countries Most Affected by New U.S. Tariffs
U.S. President Donald Trump signed an executive order imposing new tariffs on dozens of countries. Among those hardest hit by this decision are Serbia and Bosnia and Herzegovina. From August 7, 2025, imports from Serbia will face a 35% tariff, and from BiH a 30% tariff.
Although the order has already been signed, President Trump left room for future negotiations with individual states. “It doesn’t mean that somebody doesn’t come along in four weeks and say we can make some kind of a deal,” he said in comments to NBC News.
President Aleksandar Vučić reported that Belgrade has already submitted a proposal for a tariff agreement with the United States and is awaiting a response.
Member of the Presidency of Bosnia and Herzegovina Željka Cvijanović stated that as early as April she initiated negotiations with the American side—via the Ministry of Foreign Trade—proposing a zero-duty rate for American goods. However, those efforts yielded no results.
In 2024, Serbia exported over USD 670 million worth of goods to the United States, including tires, weapons, copper, fruits, and machine parts. From January to May 2025, exports to the U.S. accounted for 2.2% of the country’s total exports.
In Bosnia and Herzegovina, despite the U.S. accounting for only 1% of total foreign trade, the tariffs may have a tangible impact on the country’s defense industry.
Unlike BiH and Serbia, other Western Balkan countries were less affected. For example, North Macedonia’s import tariff was reduced from 33% to 15%. Kosovo, Albania, and Montenegro received 10% tariffs.
Pristina responded by effectively eliminating its tariff on American goods. “Any import from the U.S. will carry a zero tariff,” Prime Minister Albin Kurti declared on August 1. According to him this decision will promote trade and investment and demonstrates Kosovo’s intention to conclude a free trade agreement with the United States.
Thus, the tariff situation intensifies economic relations between the U.S. and Balkan countries but also creates opportunities for new agreements and the revision of regional trade policy. Kosovo is already demonstrating a desire to seize that opportunity.
- The U.S. Again Postpones Sanctions on Serbian Company NIS
The United States has postponed the implementation of sanctions against Naftna Industrija Srbije (NIS) for an additional 30 days. This is the fifth delay in the imposition of U.S. sanctions on Serbia’s largest energy company.
NIS was added to the sanctions list on January 10 due to the so-called “secondary risk” arising from its links to Russia’s Gazprom Neft, which itself is under Western sanctions for the invasion of Ukraine.
After the U.S. decision, in late February, Gazprom Neft transferred 5.15% of NIS’s shares to Gazprom. Now Gazprom Neft holds 44.85% of NIS, Gazprom holds 11.3%, Serbia holds 29.87%, and the remainder belongs to minority shareholders.
Earlier, Serbia’s Ministry of Mining and Energy appealed to the U.S. to postpone NIS sanctions for 180 days, but, according to Minister Dubravka Đedović Handanović, “it is currently impossible to secure a longer postponement” because “this is a matter of global politics, relations, and negotiations among world powers, which are very complex.”
Experts note that the eventual lifting of sanctions on NIS will only be possible after Russian shareholders exit the company or the war in Ukraine ends.
- Kosovo Public Broadcaster Left without Funding Due to Political Crisis
Kosovo’s public broadcaster, Radio Television of Kosovo (RTK), did not receive the second half of its 2025 budget from the state. The reason is a political crisis that has paralyzed the country’s parliament.
As is known, the newly elected Kosovo parliament at the beginning of the year was unable to commence its work due to insufficient votes to elect a speaker. Deputies from the Vetëvendosje (Self-Determination) party led by Albin Kurti insisted on electing their candidate, Acting Minister of Justice Albulena Haxhiu. When this failed, they attempted to form a committee for a secret ballot to reelect Haxhiu. Other parties opposed both moves. On July 26, deputies for the 54th time failed to elect the parliamentary leadership. That date was the final deadline set by the Constitutional Court, which a month earlier had given 30 days to elect a speaker. Following this, deputies may not undertake any actions until August 8, when the Constitutional Court will rule on the next steps.
Fadil Hoxha, advisor to the RTK Director, explained that RTK is legally subordinate to parliament, and so “the parliamentary Budget Committee procedurally allocates funds, which the Ministry of Finance then transfers to RTK’s bank account.” He stated that “the budget for the first six months of the year was allocated in January, and the second tranche was to be allocated in July,” but that did not occur. As a result, approximately half of the EUR 8.9 million allocated for RTK’s operations cannot be used by the broadcaster.
RTK’s trade union has already announced protests.
