Fate of NIS hangs in the balance - world sinks into chaos and shortages: Serbian president speaks

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At a time when the political map of the region is changing after the Hungarian elections, Serbian President Aleksandar Vucic says that key projects between the two countries will not be called into question, but admits that the negotiations about the fate of NIS are entering the most sensitive phase. After speaking to MOL Group representatives, it is clear that both parties hold strong positions, but also an interest in reaching an agreement.

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The fate of NIS (Petroleum Industry of Serbia) now depends on a compromise that must be reached quickly, because Serbia is facing concrete deadlines and serious conditions. Vucic stresses that Serbia cannot accept additional obligations when it comes to the operation of the Pancevo refinery, but believes that there is room for a solution that will satisfy both parties. The negotiations are intense, and the outcome could define the country's energy stability in the years to come.

And while a balance is being sought with Hungarian partners, the global situation further complicates things. Vucic is openly warning that the energy market is entering a phase of serious instability. The price of oil is rising sharply, and shortages are already a reality, which the president says will be felt first through problems with kerosene. But he also says that despite that, Serbia has managed to secure an amount of reserves that could soften the first blow.

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However, even that does not instill a sense of complete security. "Nothing is sufficient when you have complete madness in the world," says Vucic, noting that the crisis will not affect only the energy sector. Disruptions in food supply, as well as in plastic and parts for the auto industry are expected, which directly threatens industrial production. The state tried to ease the pressure by reducing excise duties, but this also means less revenues for the budget, which is only sustainable now thanks to previously created financial reserves.

Despite everything, the president insists that Serbia is not giving up on its development. Plans for new investments remain in focus, and there are announcement that Serbia could start manufacturing humanoid robots as early as in June. If this is realized, our country would be among only a few European countries with such technological capacity, which would mean taking a big step towards the industry of the future.

At the same time, major infrastructure works are taking place throughout the country, which, according to announcements, should be completed by the end of the year. The ambition is for Serbia to look completely different in just six months, with new construction sites and an investment cycle that should absorb global shocks.

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However, one key risk hovers over everything - the global security situation. Vucic is warning in particular about possible complications in the Strait of Hormuz, one of the most important energy crossroads in the world. Any escalation in that region could further disrupt markets and endanger supply chains.

In such an environment, Serbia is trying to balance between crisis and development, between shortages and investments. The key message from top state leadership is clear - stability is no longer taken for granted, but is defended and negotiated on a daily basis.

(Telegraf Biznis)