Serbia will not allow companies of strategic importance to fall under majority foreign ownership, according to a statement by President Aleksandar Vučić, signalling a tightening of state control over key sectors such as energy, telecommunications and critical infrastructure.
The announcement reflects a broader policy approach in which Serbia seeks to maintain national control over companies considered vital for economic security, while still allowing limited private and foreign investment in non-strategic sectors.
Strategic companies to remain under domestic control
Vučić stated that companies with strategic importance for the country — including major utilities and infrastructure operators — will remain primarily in domestic hands. Examples cited include Elektroprivreda Srbije (EPS), the state electricity utility, Telekom Srbija, and the oil company Naftna industrija Srbije (NIS).
According to the president, these companies can accept minority private capital but foreign investors will not be allowed to obtain controlling stakes. In some cases, the state could allow up to 49 percent private participation, while the majority ownership remains under state or domestic control.
This model aims to balance two goals: attracting capital and expertise from international partners while ensuring that decision-making authority over strategic infrastructure stays within the country.
Reconsidering past privatizations
Vučić also indicated that Serbia may seek to restore domestic ownership in some companies that were previously sold to foreign investors.
During the post-2000 privatization wave, many Serbian companies were acquired by foreign groups, particularly in banking, manufacturing and services. While these investments brought capital and modern management practices, the government now appears increasingly cautious about allowing similar ownership structures in sectors deemed strategically sensitive.
The shift reflects a broader trend visible in several European countries, where governments are tightening oversight of foreign ownership in sectors such as energy networks, telecommunications infrastructure and defense industries.
Energy security driving policy
Energy infrastructure is at the centre of Serbia’s strategic ownership policy. Companies such as EPS control critical electricity generation and distribution assets, making them essential for national energy security.
The importance of ownership structures in this sector has been highlighted by developments around NIS, Serbia’s main oil company and operator of the country’s only oil refinery. The company supplies a large share of the domestic fuel market and has historically had majority ownership from Russian energy groups.
Geopolitical pressures and sanctions affecting Russian energy companies have illustrated how foreign ownership of strategic energy assets can expose national economies to external risks.
Strategic expansion ambitions
Interestingly, Vučić also suggested that Serbia could pursue the opposite strategy in some cases — acquiring stakes in strategic companies abroad rather than selling domestic assets to foreign investors.
Such ambitions reflect a vision of Serbia as a regional economic player capable of expanding its influence through energy and infrastructure investments in neighbouring markets.
While these ambitions remain largely conceptual for now, they align with broader state-led development strategies that emphasise national control over key economic sectors.
Investment policy remains open for non-strategic sectors
Despite the emphasis on protecting strategic companies, Serbia continues to welcome foreign investment in most areas of the economy.
Foreign investors play a major role in sectors such as automotive manufacturing, electronics, information technology and logistics. International companies have invested heavily in industrial zones across the country, making Serbia one of the largest recipients of foreign direct investment in Southeast Europe.
The government therefore appears to be moving toward a dual investment policy:
- Strategic sectors remain under domestic control
- Competitive sectors remain open to international investors
A broader global trend
Serbia’s position mirrors developments in several advanced economies. Over the past decade, countries including the United States, Germany and France have strengthened legal frameworks allowing governments to block foreign takeovers of companies operating in critical infrastructure or national security sectors.
Energy networks, telecommunications systems and defense manufacturers are increasingly treated as strategic assets rather than purely commercial enterprises.
Serbia’s decision to preserve domestic ownership of its key utilities and infrastructure operators therefore reflects a broader global shift toward economic security considerations in investment policy.
Long-term implications
The emphasis on maintaining domestic ownership in strategic companies could shape Serbia’s economic policy in several ways.
It may lead to stronger state involvement in sectors such as energy, telecommunications and infrastructure. At the same time, it may encourage partnerships where foreign investors provide technology and capital without gaining controlling stakes.
The challenge for policymakers will be maintaining this balance while continuing to attract international investment needed for economic growth.
For Serbia, the message is clear: while foreign capital remains welcome in many sectors, the country intends to keep control over the economic infrastructure it considers fundamental to national sovereignty and long-term development.
