Western Balkans Overview Jul 22, 2025 – CWBS

Western Balkans Overview Jul 22, 2025 – CWBS
  • Serbia, Hungary, and Russia Plan Construction of a New Oil Pipeline

On July 21, Serbia’s Minister of Mining and Energy, Dubravka Đedović Handanović, and Hungary’s Minister of Foreign Affairs and Trade, Péter Szijjártó, held negotiations with Russia’s Deputy Minister of Energy, Pavel Sorokin, regarding the implementation of the project to construct an oil pipeline between Serbia and Hungary and the supply of Russian crude oil.

“Brussels is aggressively dismantling energy connections, banning the use of Russian energy resources, and blocking transport routes. This situation can be addressed by involving more energy sources and developing additional transport routes. Today, together with our Serbian and Russian colleagues, we are agreeing on the construction of a new oil pipeline connecting Hungary with Serbia,” Szijjártó stated.

After the talks, Đedović Handanović declared that the governments of Serbia, Hungary, and Russia support the implementation of this project, which will provide the country with an additional route for crude oil supply over the next several decades. “The construction of this pipeline will enable Serbia to secure crude oil supplies through Hungary, thereby further strengthening its energy security. Diversification of supplies is important in order to be safer and less dependent on a single supply route, especially in an increasingly unstable geopolitical context,” Đedović Handanović said.

According to reports, the length of the new oil pipeline will exceed 300 km. It will connect the city of Novi Sad in Serbia with the receiving station of the “Druzhba” pipeline located in Százhalombatta, Hungary. The design and technical documentation are in their final stages, and work is expected to begin at the start of 2026. The new pipeline is planned to be commissioned in 2027. The project is designed for an annual transit of up to 5 million tons of oil.

Belgrade authorities decided to build an additional oil supply route when Croatia banned the transportation of Russian oil via the JANAF pipeline at the end of 2022 in accordance with European Union sanctions against Russia due to its invasion of Ukraine. In October 2022, Serbia and Hungary agreed to construct a pipeline that would allow Serbia to receive Russian oil by connecting to the “Druzhba” pipeline passing through Ukraine.

In 2022, the European Union temporarily lifted the ban on Hungary for the import of Russian oil through the “Druzhba” pipeline, as the country has no access to the sea. At the same time, Ukraine is currently discussing the possibility of terminating the transit of Russian oil, putting the future of the Serbian-Hungarian pipeline in question.

  • Serbia and China to Conduct First Joint Military Exercises

In the second half of July, special units of the Chinese and Serbian armies will hold joint exercises called “Guardian of Peace 2025” in Hebei Province in northern China, announced Colonel Jiang Bing, spokesperson for China’s Ministry of Defense, at a press conference.

“These will be the first joint exercises between the Chinese and Serbian militaries,” he said, adding that the bilateral activities will help strengthen the combat capabilities of the participating forces and deepen cooperation between the two armies.

These exercises are part of the growing military cooperation between the countries. The East Asian state has provided the Balkan country with air defense systems to protect its airspace.

Serbia is the only European country that has military cooperation with China, including military-technical cooperation. Therefore, it is not only about the exercises themselves, but also about what precedes them—procurement of weapons and equipment, joint development, i.e., the transfer of certain assets and expertise from China to Serbia’s military industry, military analysts note.

  • EU Cuts Budget of the Growth Plan for Bosnia and Herzegovina

Bosnia and Herzegovina was left without the first €108.5 million from the European Union’s Growth Plan for the Western Balkans because BiH politicians, over the course of a year and eight months, failed to agree among themselves and present the EU with the final version of the reform program required to begin funding.

The dispute within BiH arose because the Republika Srpska rejects any transfer of powers to the state, while politicians from the Federation of Bosnia and Herzegovina demand that state institutions at least coordinate the process. Representatives of the Republika Srpska even reject the use of the term “national” in any context in the Reform Agenda insisted upon by the Federation’s representatives.

The EU is offering €6 billion to the region’s countries to accelerate their development and integration, and BiH is the only country that has not met the preconditions nor agreed upon a reform plan acceptable to the European Commission.

According to the Reform Agenda draft, the authorities of the two entities of Bosnia and Herzegovina planned to submit applications for infrastructure projects worth over €2.3 billion.

For example, it is planned to use EU funds to complete the construction of the highway on the Pan-European Corridor 5c, which will connect the Croatian port of Ploče with Budapest; to modernize the railway built during the former Yugoslavia; to implement a number of energy projects; and to digitalize the country, including the construction of a modern fiber-optic network and the introduction of 5G.

Despite the disagreements, politicians from different parts of BiH managed to agree on individual infrastructure projects, but this proved insufficient. The European Commission decided that it would no longer wait for the final document from BiH and withdrew ten percent of the funds planned for Bosnia and Herzegovina, meaning fewer funds for all planned projects in BiH and more for other countries in the region.

After Bosnia and Herzegovina was left without the first €108.5 million from the European Union’s Growth Plan for the Western Balkans, Bosnia and Herzegovina can now access a maximum of €976.6 million. The European Commission warns the authorities of Bosnia and Herzegovina that if the final, consolidated version of the Reform Agenda is not presented by September 30, 2025, an additional ten percent cut of the planned funds will occur.

  • University of Montenegro Agrees to Cooperate with Chinese Computing Center under U.S. Sanctions

The State University of Montenegro and the Shandong Provincial Computing Center (National Supercomputing Center in Jinan) of the People’s Republic of China have agreed on cooperation. The Memorandum of Understanding was signed by the Rector of the University of Montenegro, Vladimir Božović, and the Party Committee Secretary of the National Supercomputing Center in Jinan, Yu Li Wang.

“Through this memorandum, we are opening the door to strategic cooperation in fields that shape the future of digital security and technologies—from cryptographic protocols and artificial intelligence to blockchain and joint research platforms. Our goal is the exchange of knowledge, development of innovative solutions, and the building of strong connections between academic communities in Montenegro and China,” Božović stated.

The planned cooperation includes research and development of cryptographic protocols and security systems, optimization of artificial intelligence, design of cybersecurity architectures based on the integration of hardware and software solutions. Cooperation also includes the application of blockchain technology for joint training of AI models, as well as the creation of a joint platform for testing and verification of cryptographic algorithms in simulated security challenges.

During the meeting, specific opportunities for expanding cooperation were also discussed, including researcher exchanges, joint participation in international projects, as well as connection through research work, joint educational programs, and innovation centers.

Since April 2021, the National Supercomputing Center in Jinan has been on the list of organizations sanctioned by the U.S. Department of Commerce. According to the U.S. Bureau of Industry and Security (BIS), this and six other Chinese centers are linked to China’s military modernization programs and the development of weaponry, including hypersonic missiles and potential weapons of mass destruction. The sanctions prevent these organizations from accessing advanced American technologies, especially in chips and software, due to suspicions that these technologies could be used for military purposes.

The cooperation of the State University of Montenegro with a high-tech Chinese center under sanctions may complicate Podgorica’s relations with Washington.

  • Student Protests Continue in Serbia

As is known, students have been blocking university faculties across Serbia for several months, insisting on accountability for the deaths of 16 people following the collapse of a concrete canopy at the Novi Sad railway station on November 1, 2024. Recently, the demand to announce early parliamentary elections has been added to the student movement’s list of demands.

Over the past week, protesters blocked bridges, squares, and roads in Belgrade, and the highway in Užice for several hours. Rallies and road blockages also took place in Niš, Kragujevac, Novi Sad, Kruševac, Loznica, and other cities. In some places, confrontations occurred between protesters and police.

On July 22, police and the administration of the Student Cultural Center (SCC) in Belgrade cleared the building where students had been staying since February. After this, pro-government media and authorities reported disorder and thefts they discovered in the SCC premises.

On this occasion, Serbia’s President, Aleksandar Vučić, stated that “the task of the state is to find those responsible for the canopy in Novi Sad, but also to ensure accountability for everyone who, after that, has destroyed the country”. “This means that all who have destroyed the education system, turned faculties into pigsties, and ruined the country and its institutions in recent months, must be held accountable,” he added.

Despite the authorities’ accusations, the student movement remains determined to continue the protests. The protests are expected to persist, and their intensity will depend on the consolidation of students and civil society, the actions of the authorities, and the reaction of the international community.