AGP Executive Report

Diplomacy in Focus: Ukrainian President Volodymyr Zelensky arrived in Serbia for his first official visit, with talks set for Belgrade with Aleksandar Vučić and Prime Minister Đuro Macut, centered on EU paths, economic ties, energy cooperation, and security—while Vučić reiterated Serbia will not change its Russia sanctions stance. Energy & Industry: MOL says talks over NIS are progressing toward the final stage, as the Serbian oil firm remains under US sanctions tied to Russian ownership. Wildfires & Heat: Serbia is battling major wildfires amid extreme heat and drought, with army helicopters deployed near Deliblatska Pescara and Kraljevo and evacuations ordered in some areas. Danube Drought: Record-low Danube levels are exposing WWII wrecks near Prahovo, while navigation remains severely hampered. Local Governance: Serbia’s political tensions also surfaced in reporting on a “war within the police” after a criminal complaint by former Belgrade police chief Veselin Milic.

Danube Drought Exposes WWII Wrecks: Record-low water on the Danube has revealed dozens of scuttled German battleships near Prahovo, as drought also threatens power generation across Central and Eastern Europe. Serbia–Ukraine Diplomacy: Serbian officials confirmed President Aleksandar Vučić will host Volodymyr Zelenskyy in Belgrade on Aug. 8—his first visit since the 2022 invasion—framed around cooperation and EU accession. Energy Pressure From Heat: Europe’s heatwave is pushing countries toward electricity conservation as rivers shrink and infrastructure strains mount. Local Emergency: Backa Palanka declared a state of emergency after a landfill fire, with thick smoke affecting residents and firefighting still under way. Business Support: Serbia’s government approved tax and budget-law changes plus a near-3 bln dinar package of loans and grants for SMEs and targeted sectors. Mining Spotlight in Bor: Serbia marked Miner’s Day, with Vučić praising mining’s role in jobs and energy stability. Sports & Culture: PSV officially signed Serbian winger Filip Kostić; Serbia also confirmed rosters for FIBA U16 EuroBasket 2026 in Oradea.

EU INTEGRA Funding: Serbia’s local governments can apply for EU INTEGRA grants to prepare project and technical documents for future development and integration investments, with EUR733,000 total available and individual grants of EUR30,000–EUR70,000 (55–80% of eligible costs), applications due Oct. 5. Business Support & Taxes: The Serbian government approved a package of financial bills and a new business support program worth nearly 3 bln dinars, including changes to VAT, excise duties, e-invoicing and public debt rules, plus loans and grants for SMEs and targeted sectors like food and furniture. Diplomacy: President Aleksandar Vučić met outgoing Azerbaijan’s ambassador, praising steady support for Serbia’s sovereignty and discussing energy and transport cooperation; PM Đuro Macut also met Morocco’s ambassador to expand trade, agriculture and tourism ahead of EXPO 2027. Foreign Policy Signal: Ukraine’s President Volodymyr Zelensky will visit Serbia Aug. 8 for the first time since 2019, a move framed by Kyiv as a push to pull Serbia away from Russia. Politics & Debt: Dragan Đilas says Vučić’s “strongest ever” claims don’t match record debt and isolation. Football Politics: UEFA kept its FIFA boycott stance over Infantino, saying conditions still aren’t met. Sports Transfer: PSV confirmed Serbian winger Filip Kostić on a free transfer. Kosovo War Crimes: Kosovo’s Special Prosecution filed an indictment over alleged 1999 war crimes in Gjakove/Djakovica, naming Kosovo Serb businessman Milan Radočić.

Danube Drought Fallout: Record-low water levels are exposing dozens of WWII wrecks and Nazi warships near Prahovo, while disrupting shipping and raising energy fears across the region. Kosovo Tensions: Serbia’s Kosovo-Metohija office says Pristina’s court summonses for Srpska lista officials are renewed pressure on Serbs, with hearings set for Aug. 13. Public Finance Watch: Serbia’s public debt reached €41.29bn at end-June, or 43.8% of GDP, up from €39.34bn at end-2025. Citizens’ Payments Debate: President Vučić announced planned cash payments for adults plus targeted subsidies, drawing accusations of vote-buying. Belgrade Culture & Business: EXIT Festival is expanding internationally, with an Egypt debut planned for October, while Belgrade also saw a new pharmacy opening. Energy & Climate Link: Hungary warns its Danube-linked nuclear cooling faces risk as the river dries, underscoring how drought is turning into an energy crisis.

Kosovo Pressure: Petar Petković says Pristina’s court summonses for Srpska lista officials are “further pressure” on Kosovo Serbs, after five leaders were summoned for alleged document forgery tied to earlier raids. Regional Politics: Aleksandar Vučić said Bosnia and Herzegovina hasn’t recognized Kosovo due to Republika Srpska’s stance, while Serbia’s President also traded sharp words with BiH’s defense minister over a Bugojno visit. Danube Drought & Security: Record-low Danube levels have exposed WWII German warships near Prahovo, with some still carrying weapons, as drought also threatens navigation and power generation. Foreign Relations: Marko Đurić spoke with Romania’s Oana Țoiu about coordinated steps for Danube transport, including restoring a cross-border railway link. Belgrade–China Ties: Belgrade deputy mayor Vesna Vidović met a Fujian delegation to discuss investment, trade, digitalisation, tourism and culture, including a Belgrade–Xiamen twinning push. Economy Watch: Serbia’s public debt rose to €41.29bn at end-June (43.8% of GDP), and the dinar median rate was 117.3657 RSD per euro. Culture & Grants: IFFR’s Hubert Bals Fund selected 20 projects for 2026 development support, including two from Serbia. Sports/Transfers: Besiktas says it’s “working on it” for Dušan Vlahović after stepping away from Mohamed Salah talks.

Danube Drought Fallout: Record-low water on the Danube has exposed dozens of WWII German warships near Prahovo, Serbia, along with other relics, while drought also threatens power generation and forces governments across Central and Eastern Europe to conserve electricity. Kosovo War Crimes Search: Kosovo authorities say they’ve identified a third possible mass grave site tied to the 1998-99 war, after remains of 11 people were found at earlier locations; DNA identification could take months. Serbia-EU Reforms Talk: Parliament Speaker Ana Brnabic met Irish Ambassador Kevin Colgan to discuss Serbia’s EU-path reforms and expand bilateral cooperation, highlighting Ireland’s EU Council presidency. Student Movement Registers: Serbia’s student movement has registered as an association and says it’s preparing for snap parliamentary elections even though President Vučić hasn’t scheduled them. Sports—UCL Qualifiers: Crvena zvezda lost 1-0 to Hapoel in the Champions League third qualifying round first matches.

Student Politics: Serbia’s student movement has registered as a non-governmental, non-partisan association and says it is preparing for snap parliamentary elections that President Vučić has yet to schedule. Diplomacy: Prime Minister Ana Brnabić met Ireland’s ambassador to discuss Serbia’s EU-path reforms and deeper bilateral cooperation, including the opening of Ireland’s first embassy in Serbia. Regional Politics: Vučić told Pink TV that great-power interests have long clashed in the Balkans and framed Serbia’s independence as a continuing problem for external powers. Energy & Climate: Europe’s heat and drought are hitting the Danube and Rhine so hard that nuclear plants face cooling limits and shipping is disrupted; in Serbia near Prahovo, WWII German warships are reappearing as water drops. Legal Pressure: Belgrade Bar Association officials say attacks on lawyers are escalating and call for street action and stronger public pressure. International Trade: Serbia and Zimbabwe are moving to expand economic cooperation via a memorandum linking Serbia Export and ZimTrade. FIFA Fallout: Serbia is among federations withdrawing support from Gianni Infantino’s FIFA re-election bid amid governance and transparency concerns.

FIFA Power Struggle: Serbia’s Football Association has withdrawn support for Gianni Infantino’s re-election after his failed plan to sell a stake in the World Cup to private investors, joining Sweden and Wales and raising the stakes for the March 18 vote in Morocco. Student Politics: Student protesters behind the Novi Sad railway canopy blockades say their “Student List” association has been registered with Serbia’s Business Registers Agency, with the group framing its work as democracy and fair elections. Heat, Water, Energy: Europe’s drought is hitting rivers and power generation hard, with record-low Danube levels affecting hydropower in Serbia and forcing major energy disruptions across the region. Regional Diplomacy: Serbia and Zimbabwe signed new cooperation MoUs in Belgrade, while Serbia also moved to deepen ties with Uzbekistan through a planned labor mobility agreement. Sports & Culture: Belgrade’s UFC debut continues to dominate local sports chatter, while a Serbian-linked documentary by Milcho Manchevski is set for Sarajevo Film Festival’s competition premiere.

Energy Crunch From the Danube: Serbia’s power system is feeling the heat as record-low Danube water levels cut hydropower output and threaten stability across the region; Serbia’s PM Djuro Macut urged people to use electricity rationally, especially by limiting heavy AC use during peak hours. Regional Diplomacy: Serbia and Zimbabwe signed MoUs in Belgrade and Zimbabwe said it will reopen a diplomatic and consular office in the Serbian capital, deepening cooperation in trade, investment, agriculture, education, science, arts, culture and tourism. Strategic Partnership Building: Serbia’s state labor officials met Uzbekistan’s deputy foreign minister in Belgrade to strengthen ties and lay groundwork for a labor mobility agreement ahead of an expected Uzbek presidential visit. Opposition Pushback on Citizenship Data: Dragan Djilas says the Interior Ministry is refusing to provide address data for more than 133,000 people granted Serbian citizenship from 2020-2025, alleging many domiciles are false and could fuel election-fraud claims. Heatwave Reality Check: Europe-wide drought is also disrupting transport and electricity generation, with Romania taking emergency steps to improve cooling water flow for its nuclear plant. Belgrade in Focus: President Vučić visited his family home in Cipuljic, calling it a return to childhood memories.

Energy & Industry: Serbia’s NIS got a fresh U.S. OFAC operating license extension until August 28, letting it keep processing crude oil while talks continue over MOL’s bid to resume negotiations with Gazprom Neft and JANAF’s oil delivery requests. Politics & Kosovo: President Aleksandar Vučić renewed his hard line on Kosovo, saying Serbs there face “horrific terror” while the world stays silent, and insisted “there are no Bosnian or Croatian Serbs, we are all Serbs,” warning regional media and governments against divisive language. Elections & Governance: The Bureau of Social Research says ODIHR is “silent” on Vučić’s alleged breach of the ODIHR priority recommendation to separate party and state, pointing to his role in local campaigns and rallies. Sports—UFC in Belgrade: UFC Fight Night 283 in Belgrade delivered record-breaking finishes, with hometown star Uroš Medić knocking out Daniel Rodriguez in 30 seconds and Navajo Stirling stopping Jan Blachowicz by first-round TKO. Climate & Infrastructure: Europe’s drought is hitting the Danube hard, with reports linking low water to disruptions in power generation and river transport, and even resurfacing WWII wrecks near Serbia.

UFC Belgrade Buzz: Uroš Medić made history in front of his home crowd, blasting Daniel Rodriguez in 30 seconds and helping UFC’s first-ever Serbia card set record numbers for early finishes and stoppages. Sports & Local Pride: Bonuses after the event went to Medić, Navajo Stirling and others, while Stirling also crushed Jan Blachowicz in the co-main. Danube Drought Fallout: Record-low Danube levels are exposing WWII-era Nazi wrecks near Prahovo and other sunken ships, raising safety and shipping concerns across Central Europe. Wildfire Tragedy in the Region: Two firefighting helicopters collided near Athens while battling a wind-driven blaze, killing two crew members and injuring others as Greece and parts of Europe remain on high alert. Belgrade in the Spotlight: The event also sparked online debate after a “President Trump, Serbia welcomes you” banner appeared inside the arena. Visa-Free Travel Update: Finland confirmed visa-free entry for citizens of about 60 countries, with only Mauritius and Seychelles among African nations.

UFC Belgrade Breaks Records: Uroš Medić crushed Daniel Rodriguez in 30 seconds in the UFC’s first-ever Serbia card, while the event set a new UFC mark for first-round finishes and overall stoppages. Local Sports Spotlight: In the co-main, Navajo Stirling stopped former champion Jan Blachowicz in the first round, sending fans calling for Blachowicz to retire. Belgrade Meets Dana White: Serbia’s President Vučić is set to meet UFC boss Dana White ahead of the Fight Night, with organizers calling it a long-term partnership milestone. Danube Drought Fallout: Record-low Danube levels are disrupting transport, energy and tourism, and have even exposed wartime wrecks and relics. Border Chaos: Long queues hit the Bajakovo–Batrovci crossing as the EU’s biometric Entry/Exit System ramps up, with drivers reporting up to eight-hour waits. Media Freedom Watch: RSF warns Serbia’s ANN sale could risk political capture of independent outlets. Currency Update: Azerbaijan’s official rates show the US dollar unchanged at 1.7000 manats and the euro at 1.9564.

UFC Belgrade Spotlight: Serbia’s first-ever UFC event is in full swing at Belgrade Arena, with Uroš Medić facing Daniel Rodriguez in the main event and Jan Blachowicz taking on Navajo Stirling in the co-main, while local fighters like Jovan Leka and Borislav Nikolić delivered standout wins on the card. Energy & Industry: The US Treasury has issued NIS a special licence to keep operations running until Aug. 28 and extend talks with MOL, as negotiations continue over NIS ownership. Press Freedom Watch: Reporters Without Borders says the sale of Adria News Network must not lead to political capture of independent outlets, warning about editorial independence risks. Border & Travel Pressure: Croatia’s main Bajakovo–Batrovci crossing saw 7 km queues and up to eight hours of delays as the EU’s biometric Entry/Exit System hit its first peak summer. Climate Fallout on the Danube: Record-low water levels have exposed WWII wrecks in Serbia, underscoring how drought is disrupting shipping, energy and tourism across the region.

UFC Belgrade, Serbia’s first-ever UFC event: The Belgrade Arena hosts UFC Fight Night 283 on Saturday, Aug. 1, headlined by hometown welterweight Uroš Medic vs. Daniel Rodriguez, with Jan Blachowicz taking on short-notice replacement Navajo Stirling in the co-main. Regional drought impacts Serbia and the Danube: Record-low Danube water levels, driven by a Europe-wide heatwave, have exposed a WWII Nazi ship wreck near Prahovo, while low water is also disrupting shipping and power generation across the region. Serbia–North Macedonia cooperation: Serbian PM Djuro Macut met North Macedonia’s Hristijan Mickoski in Ohrid, highlighting growth in transport, rail upgrades toward Greece, energy connectivity, agriculture and tourism. Media and politics: Reporters Without Borders urged transparency over the planned ANN sale, warning about potential political influence. Culture spotlight: Serbian-Iranian-German-US coproduction “I Plant My Hand in the Garden” heads to Venice Days / Giornate degli Autori for its world premiere.

Serbia-EU & Economy: President Aleksandar Vučić said Serbia recorded the highest GDP growth rate in Europe in Q2 2026, at 3.6% year-on-year, and hinted growth could stay above 4% next year. Regional Infrastructure: Serbia’s PM Đuro Macut met North Macedonia’s Hristijan Mickoski in Ohrid, focusing on transport links, rail upgrades toward Greece, and plans for a gas interconnector. Elections Watch: ODIHR says Serbia’s upcoming vote is likely too polarized for a limited effort and recommends a full election observation mission, including long- and short-term teams. Healthcare & Rights: A DW investigation describes Serbian maternity wards as using routine, outdated practices and alleged verbal abuse, with women saying consent and dignity are routinely ignored. Kosovo Tensions: Kosovo’s rules from 1 August require Orthodox pilgrims to be accompanied by a Pristina-licensed tour guide, which analysts say is aimed at limiting Serb arrivals. Danube Drought: Record-low Danube levels are disrupting transport, hydropower and tourism, with Serbia and the region feeling the strain. Business/Industry: Serbia Zijin Copper says it sold 17 tons of gold to the National Bank of Serbia since 2019. Sports: UFC Fight Night in Belgrade on Aug. 1 features Uroš Medic vs Daniel Rodriguez, with local fans watching the main event at Belgrade Arena.

Heat & Water Crisis: The Danube hit record-low levels in Budapest and across Serbia, with drought and a new heatwave leaving boats stranded, exposing sandbanks and rocks, and disrupting shipping, tourism, and even hydropower output. Energy & Industry: Austria’s Verbund said drought cut its first-half earnings by €370m as hydropower production slumped, while Serbia braces for another heatwave that could strain power and transport. Diplomacy & Investment: President Vučić met UAE leader Sheikh Mohamed bin Zayed in Belgrade, pitching EXPO 2027 and pushing deeper economic ties under a strategic partnership. EU Integration Focus: Austria’s S3 presidency set priorities including faster Western Balkan EU integration, energy security, and cross-border connectivity. Sports (Serbia on the European map): Ajax advanced in the Conference League after beating Vojvodina 4-1 in Amsterdam, setting up a tie with Shelbourne; Red Star awaits the winner after Hapoel Beersheba eliminated Vikingur. Public Safety: Wildfires across southern Europe are worsening under extreme heat and winds, with fatalities reported in Greece.