Issue Note Serbia Interagency Review

The Serbian foreign investment screening mechanism mandates interagency responsibility, ensuring that decisions – especially in sensitive sectors like arms and military equipment – are not made by a single authority. The Ministry of Defence is the primary authority for such investments, but it must obtain opinions from other ministries and security services before preparing a draft decision. This process, as outlined in the Law on Production and Trade of Arms and Military Equipment, involves analysing the impact of foreign investment on national defence, industrial development, export potential, public health, the environment, and national security. If an investment is found potentially harmful, the request is rejected, and the Government makes the final decision through a coordinated process.

Authorities are legally required to cooperate domestically, though the law does not require consultation with foreign authorities, except for obtaining necessary documents from the investor’s home country. The process is governed by general administrative law and inter-ministerial cooperation rules, emphasizing data sharing and joint decision-making.

There are no formal or informal hearing procedures for broader participation; the investor may only submit written documentation. The Government’s final decision is made in a closed session, although informal public influence cannot be entirely excluded.