REFINERY IN BOSANSKI BROD AND ITS FATE: How everyone forgot about the gas pipeline construction overnight

(Patria) - The Prime Minister of the Republika Srpska, Radovan Višković, recently stated that the oil refinery in Bosanski Brod has not been operating since the accident two years ago and is not involved in oil processing, so it does not have a problem with oil sanctions.

- These sanctions relate to the ban on the import of Russian oil into Serbia and BiH, and we do not have this problem with our refinery - Višković told reporters in the National Assembly of Srpska.

He added that the Refinery is doing other business related to gas imports.

- A gas pipeline has been built from Croatia to the Refinery. Representatives of the Refinery approached the Government of Srpska less than a month ago requesting a concession for the construction of a gas power plant within the company - Višković explained.

The entire public in BiH has forgotten about 2017, when the Government of Croatia and the Government of the BiH entity Republika Srpska signed an agreement to connect the oil refinery in Bosanski Brod to the gas pipeline from Croatia.

Croatian Prime Minister Andrej Plenković said at the time that the residents of the Brod Posavina region have been facing the problem of air pollution for years, and that the solution accepted by the Croatian Government will result in improved air quality and reduced health risks. 

At that time, the then director of BH Gas, Jasmin Salkić, and his advisor Almir Bečarević reacted urgently, warning that the Federation of BiH would definitively be left without a gas pipeline from Croatia if the Refinery was connected to the Croatian gas pipeline in the manner agreed between the Government of the BiH entity RS and the Government of Croatia.

Salkić said at the time that it was not fair for Croatia to solve the air pollution problem in Bosanski and Slavonski Brod, while at the same time pushing Sarajevo, as well as some other cities in BiH, such as Zenica, into the same problem.

He reminded that the gas pipeline to Sarajevo was built precisely because of excessive air pollution in the capital of BiH. This gas pipeline has smaller capacities and is outdated. If Sarajevo is now prevented from increasing these capacities and increasing the number of gas consumers, the air in Sarajevo will be even more polluted.

It remained unclear why Croatia agreed to this project, especially considering that we have three signed letters of intent stating that Croatia will build a gas pipeline to Brod, and we from Brod towards Zenica.

- Only the Refinery in Brod and the gas supplier, Mr. Čermak's company, which will trade several hundred million KM, will benefit from what Croatia and RS have agreed upon. Even the citizens of RS will not benefit from this - Bečarević said.

The takeover of Sberbank's European subsidiaries, including those in the country, was the first consequence felt in Bosnia and Herzegovina due to sanctions against Russia. N1 checked today how other Russian companies will continue their operations and whether the oil refinery in Bosanski Brod will also be subject to an economic "bailout". 

Bentonite and coal from Lješljani are natural resources for which Republika Srpska has granted a concession for 30 years. The companies and heirs of Russian oligarch Oleg Burlakov are not giving up on the project.

Miroslav Drljača, mayor of Novi Grad, points out:

- Whether it will be realized, generally, the interest in this location is related to the inability of Russian capital to participate in economic processes in the EU, so there is greater interest in activating this project. Having waited all these years, I cannot say that I am not optimistic, or that I do not believe, but it is certainly still far from realization.”

The Brod Refinery, which has not been operating since the 2018 accident, is also far from starting operations. Even if it were operating, it would struggle with raw materials, especially considering that the EU embargo on the import of crude Russian oil comes into effect on May 15.

Serbia is exempt from the oil sanctions package and will continue to receive crude oil in Pančevo via the Jadranski naftovod. The price, it is assessed, was a vote against Russia in the UN.

- These sanctions relate to the ban on the import of Russian oil into Serbia or BiH; we do not have that problem. Our Refinery is doing other business with gas imports. You know that a gas pipeline has been built to the Refinery from Croatia. The Refinery approached the Government about a month ago with a request for a concession to build a gas power plant within the Refinery - says Radovan Višković, Prime Minister of Republika Srpska.