The Government of Serbia has adopted a Draft Law that transforms the public enterprise “Srbijašume” into a limited liability company (LLC), sparking public debate and concern. Although officials claim that this change will not affect state ownership of forests, environmental groups and opposition parties warn that it could pave the way for privatization and reduce transparency in forest management.
Under the new law, the existing public enterprise will cease to exist, and a new LLC will be formed to take over its rights, obligations, employees, and assets. The draft law emphasizes that the Republic of Serbia will remain the sole owner of the company and its capital, aiming to align operations with market principles and increase efficiency.
However, critics argue that converting a public enterprise into an LLC introduces the risk of future privatization, since this legal form allows for potential changes in ownership structure, including the sale of shares. Environmental organizations fear that long-term leasing of forests to private entities or foreign companies could follow.
Opposition parties also express doubts about the true motives behind the transformation. They emphasize the importance of preserving state control over natural resources and demand full transparency in decision-making processes. Some have called for public debate and consultation before the law is adopted.
The Ministry of Agriculture, Forestry and Water Management stated that the reform is part of a broader plan to improve the efficiency of public enterprises and harmonize them with EU regulations. It assures that forest protection, reforestation, and sustainable use remain priorities.
The draft law is expected to be submitted to the National Assembly for discussion in the coming weeks.
