Kovačević: Foreign investors would leave Serbia at the invitation of their governments, even though they are cheap workers

Foreign investment consultant Milan Kovačević said today that investors from European countries and the USA would fully accept the invitation of their governments to punish Serbia in case it rejects the German-French plan for negotiations on Kosovo.

“They would ignore everything, cheap electricity, gas, workforce in Serbia, the only ones left would be those who could preserve jobs without it being seen. This can be seen in the experience of Russia, all American companies and companies from distant countries, which imposed sanctions on Russia, followed the calls of their governments and left that country,” Kovačević told Beta.

The President of Serbia, Aleksandar Vučić, said last night that the representatives of the EU, USA, Germany, France and Italy told him last week that if he rejects the EU plan for Kosovo, there would be a stop and then a withdrawal of investments from Serbia.

Kovačević said that he was surprised in 1992, when the United Nations Security Council imposed sanctions on Yugoslavia, that General Motors, which was an investor in the foundry in Kikinda, immediately asked for help in order to terminate all contracts, and even the lease of space for housing workers, with the explanation that are sanctions such that they must not have any relations with Yugoslavia.

“That’s how it is in the West, citizens and companies are loyal to their governments, they are obedient and even now, if they are introduced, they will implement the sanctions to the maximum. Investments are insured and those companies will collect certain damages from the insurance companies,” Kovačević said.

He added that with the withdrawal of investors, the consequences for Serbia would be great, that workers would lose their jobs, exports and imports would be reduced, because large foreign investments were invested in companies that largely deal with the production of automotive parts that are placed on the foreign market, the gross domestic product would fall. domestic product (GDP).

Sanctions against Serbia now, as he said, might be a little different than in 1992.

“Now they probably wouldn’t introduce total sanctions, a ban on imports, exports, payments, but they would start with some that would really hurt Serbia in the expectation that it would change its mind because it’s more useful for them,” Kovačević said.

Kovačević said that Serbia has a lot of bad contracts with foreign investors, and one example is the factory near Belgrade, for which Serbia covered most of the investment and provided a number of other services to make it happen, but the contract states that it can sell whenever it wants. that factory without suffering the consequences.

As he said, the government presents many contracts as milk and honey, and Serbia loses most of the disputes and pays hundreds of thousands of euros for it from the budget.

“There were a lot of mistakes regarding foreign investments in Serbia, the first mistake was not making an analysis of the benefits of the subsidies that were granted. The President of Serbia invited foreign investors and promised that they would get more than in any other country,” Kovačević said. .

He added that Serbia attracted the most foreign investors in the region, but also under less favorable conditions than others.

Kovačević said that the United Arab Emirates (UAE) was given 120 hectares of land for the settlement of Belgrade on the water for free, and that Serbia received a one-third share in that company, only based on the investment of money, not property and several valuable buildings.

According to him, in the contract between the state and investors from the UAE for the construction of Belgrade on the water, it is stated that the land is leased free of charge when building is built on it, and when it is built and sold, the lease turns into property and whoever buys the real estate also gets land.

“However, this does not apply, the company still owns the land and a mortgage was placed on it in order to take money and finance a company that does not make a profit. By law, a house cannot be sold without the land remaining in other hands, but everything is possible in Serbia,” Kovačević said.

He added that in the state agreement on encouraging investments from the UAE, which was written in English, it says that the document is valid and that domestic law does not apply to it, while the same document written in Serbian is not valid where it does not say so.

Kovačević said that it would be normal to make a calculation of what is gained by a certain investment, but this is not done, so even the one who came up with that investment cannot find out that he made a mistake.

“In Serbia, the state enters into large investments without any calculations,” Kovačević said.

By Editor

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