Bosnia and Herzegovina (BiH) faces a fresh obstacle on its path to World Trade Organization (WTO) membership as Russia demands the removal of sanctions imposed on Moscow over its war in Ukraine, officials said.
The issue emerged during a Geneva meeting of accession delegations two months ago, at a time when, according to Hamdo Tinjak, head of BiH’s WTO negotiation team, key Russian requirements had already been met.
“Membership will not happen unless the Russians give the green light. To meet their demands, we would have to lift the sanctions, which is pointless. This is the current status quo,” Tinjak told Radio Free Europe/Radio Liberty (RFE/RL).
BiH submitted its WTO application 26 years ago, entering a prolonged process to align domestic legislation with WTO standards and complete bilateral trade negotiations with some member states. Russia, the last remaining holdout, has blocked BiH’s membership since 2015, raising demands that the BiH negotiating team describes as impossible.
Under WTO rules, any of the organization’s 166 members can halt the accession of new members.
“Now they frame it as an issue to resolve to conclude the agreement. But BiH has committed to follow EU foreign policy, and I don’t know anyone who can solve this,” Tinjak said.
WTO officials visited BiH in November 2024 and said the country could join by mid-2025 if all conditions were met. BiH’s Minister of Foreign Trade and Economic Relations, Staša Košarac, then reported completion of negotiations on goods and services markets and the signing of protocols with 17 WTO members.
While progress with Russia was reportedly made, Košarac did not respond to questions about the new Russian demands, and the Russian Embassy in BiH declined comment.
Longstanding Negotiations and Political Complexities
BiH formally began WTO accession talks in May 1999, with official negotiations opening three years later. The process has reached an advanced stage, with only the final bilateral round with Russia remaining, according to the latest WTO report.
Anita Pipan, chair of the Geneva working group, said in June the session was an opportunity to “inject new momentum” into BiH’s accession process. She added that negotiations are conducted confidentially and details are known only to the negotiators.
Membership in the WTO would provide BiH with greater market access, legal protections, and a more level playing field in global trade. Tinjak said the current blockade affects trade with third countries, as WTO membership would allow access to lower tariffs already agreed upon by member states.
Sanctions Complicate Accession
BiH imposed sanctions on Russia following the 2022 invasion of Ukraine in alignment with EU measures. However, sanctions have not been enforced due to opposition from ministers from Republika Srpska, the Serb-majority entity in BiH, whose officials maintain close ties with Russian President Vladimir Putin.
Economist Admir Čavalić described the Russian demand to lift sanctions as a politically motivated burden that effectively blocks BiH’s WTO accession.
“After so many years of negotiations, these blockages have become absurd and meaningless. Politicians in RS with good ties to Russia have not used their influence to prevent these impossible conditions,” Čavalić said.
Energy Sector and Russian Investments
Russia’s leverage extends to BiH’s oil sector. Russian firm Neftegazinkor, a subsidiary of Zarubezhneft, owns the Modriča and Brod refineries and a chain of petrol stations. The company has injected more than 1.7 billion Bosnian convertible marks into the business since privatization in 2007.
Workers report reduced operations and job losses since privatization, while financial analysis suggests the refineries have been subjected to transfer pricing practices favoring affiliated companies. Regulatory transparency has been limited, and key documents remain inaccessible.
U.S. sanctions imposed in January 2025 on Zarubezhneft’s CEO and affiliated companies highlight the risks of Russian involvement. Analysts warn that further sanctions could destabilize the oil industry in Republika Srpska, given its dependence on Russian investment.
“Without the owner’s constant financial support, these companies cannot survive. Any sanction on the operating firm would put the Republika Srpska oil sector in serious jeopardy,” said Siniša Vukelić, editor of Capital portal.
As BiH navigates complex accession talks and geopolitical pressures, experts warn that balancing EU alignment with WTO ambitions will remain a delicate challenge.