The Israeli Chamber of Commerce recently established a new office in Banja Luka, the administrative seat of Republika Srpska, one of the two main political entities comprising Bosnia and Herzegovina. Local officials described the move as a significant step toward deepening economic and political connections between the two regions.
This development occurs against a backdrop of intense global scrutiny regarding Israel’s military operations in Gaza. While the Federation of Bosnia and Herzegovina, the country’s other primary entity based in Sarajevo, has expressed criticism of Israel’s actions, Republika Srpska has maintained robust support for Tel Aviv since the onset of the conflict in October 2023.
Milorad Dodik, the influential former president of Republika Srpska, has consistently positioned his entity as a key ally of Israel in the Balkans. Despite being stripped of his political office last year following convictions for defying international envoys overseeing the Dayton Peace Agreement, Dodik remains a dominant figure. He has opposed the recognition of Palestine, stating in August 2025 that a state without reality cannot be legally recognized.
During the opening ceremony on Thursday, Dodik drew parallels between the historical suffering of Serbs and Jews. “We have shown that we can, under impossible conditions and in an environment that is historically speaking hostile, preserve our identity and our holy word, which is freedom,” Dodik said. The Palace of the Republic in Banja Luka had previously been illuminated with the colors of the Israeli flag following the start of the Gaza war.
Galit Peleg, Israel’s ambassador to Bosnia and Herzegovina, noted that the office aims to foster investment cooperation and connect businesses. She highlighted that the Office of President Milorad Dodik provided facilities in Banja Luka even as pro-Palestine protests intensified in Sarajevo.
Amir Gross Kabiri, an Israeli businessman and head of the new office, is a prominent figure in Bosnia’s economic landscape. His company, a subsidiary of the M.T. Abraham Group, acquired the lease of the former Aluminij aluminum plant in Mostar in 2020 after the state-owned giant collapsed into bankruptcy.
Ana Trisic Babic, acting director of the Office for International Cooperation of Republika Srpska, stated that the entity and Israel share long-standing friendly relations rooted in shared historical challenges. She viewed Prime Minister Benjamin Netanyahu’s endorsement of the office opening as validation of these ties.
However, analysts warn of broader geopolitical implications. Davor Gjenero, a Zagreb-based expert on Western Balkan affairs, suggested the partnership could help Republika Srpska address severe financial difficulties, including rising debt. He described the entity as facing a form of bankruptcy and viewed Israeli economic engagement as part of a strategic response.
Gjenero also raised concerns about the alignment between Dodik’s policies and those of Serbian President Aleksandar Vucic, labeling the trend potentially dangerous amid escalating tensions in Bosnia. He cautioned that increased cooperation between Republika Srpska and Israel, alongside growing military ties between Serbia and Israel, could threaten Bosnia’s sovereignty and complicate its path toward European Union membership. Any unilateral activities by Republika Srpska without coordination with Sarajevo, he argued, risk destabilizing internal relations and complicating dialogue with EU partners.
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