Bulgarians had no problems doing business in Serbia and were willing to take measures to forestall future difficulties, participants at a Sofia round table on bilateral business relations agreed on March 24.

The gathering was organised quickly, following Bulgaria’s recognition of Kosovo on March 20. Some people feared that Serbian authorities would hinder Bulgarian entrepreneurs and travellers to the country as punishment for Bulgaria’s recognition of the former Yugoslavian province.

One of the round table’s organisers was Hristo Kovachki, a renowned entrepreneur whose businesses include shops and sport complexes. Kovachki is perhaps best known for his energy empire. This includes the Maritsa 3 thermal power plant, the heating utility in Vratsa, five coal mines and the former communist pride and joy, Atomenergoremont – a company specialising in the manufacture, repair and installation of power equipment, mainly at the Kozloduy nuclear power plant. Kovachki’s involvement arises from his ownership of the Kovin coal mine in Serbia. His company, Kornikom, bought the mine in 2007 for 16.1 million euro. This makes him one of the few Bulgarian businessmen to have invested millions, not only in Serbia, but also in other countries outside Bulgaria.

Another major Bulgarian investor in Serbia is Prista Oil, the largest Bulgarian exporter of motor and industrial oils. In 2006, the company opened the first of 200 planned car centres in Belgrade. The firm also sent a representative to the March 24 discussion.

The most recent acquisition by a Bulgarian company in Serbia took place on March 20. Serbia’s commission for the protection of competition approved the purchase by Bulgarian pharmaceutical producer Sopharma of the control stock in the Belgrade-based pharmaceutical firm Ivancic and Sons.

With such large sums at stake, Kovachki took the initiative in organising the round table. He managed to gather both Bulgarian and Serbian representatives and entrepreneurs in a meeting designed to reassure all parties that it would be business as usual between the two countries, despite political tensions.

The message emanating from the round table suggested that Bulgarian investments, regardless of their size, would be fully protected. Yavor Koyoumdjiev, Bulgarian Deputy Economy Minister, said that trade between the two countries in 2007 amounted to 800 million euro. Bulgarian businesses ranked as the 12th largest foreign investor in Serbia, he said, as quoted by the Bulgarian-language Focus agency. He did not sense that Bulgarian companies were complaining about unfair treatment in Serbia. “The Serbs have not ceased trading with Kosovo and the same will apply to Bulgaria and Serbia,” he said.

The Serbian side was more moderate in its message. Dejan Hinic, first counsellor at the Serbian embassy, said business and politics should remain separate, although the current atmosphere “was not what it used to be”. Hinic’s presence was perhaps indicative of a certain “atmosphere” since the Serbian ambassador to Bulgaria, Danilo Vucetic, was recalled to Belgrade following Bulgaria’s recognition of Kosovo. “I don’t believe that Serbia will take actions against its own interests,” Hinic was quoted as saying by Focus. “At the moment I see no reasons why Bulgarian carriers should have problems entering Serbia,” he said. “There could be some isolated cases but, in general, we have a deep interest in developing economic ties.”

Days after Bulgaria recognised Kosovo, TV reports showed some Bulgarian drivers complaining that they had been pelted with stones while travelling around Serbia.

Serbia was open for investments and Bulgarian business was more than welcome, Ljubisa Mitic from the Serbian Chamber of Commerce (SCC) told the conference. He said that more than 100 Bulgarian companies had made investments in Serbia and there were 271 joint stock companies. Bulgarian business was deeply involved in the privatisation process and the SCC would not jeopardise this, he said. “No one would organise opposition but in the light of the political situation there could be some problems.” Bulgaria was the seventh largest importer in Serbia and the 13th largest exporter country. In terms of privatised companies Bulgaria ranked second, he said.

Kovachki’s gathering achieved its purpose. It approved the creation of a Bulgarian-Serbian Economic Forum (BSEF) designed to ease economic ties. The Forum’s ambition, according to Focus, would be to grow into a non-governmental regional initiative in South East Europe. The registration of the new body would become a fact in the next few weeks.

Participants elected Bulgarian leading journalist Georgi Koritarov as chairperson of the BSEF. Koritarov made the news two years ago when, in front of TV cameras, he admitted he had worked for the communist-era Bulgarian secret services covering former Yugoslavia. He also admitted recruiting a number of people who had become part of Serbia’s current political and economic establishment.