Serbia's economy has been grappling with significant losses exceeding €40mn since mid-June when Kosovo imposed a ban on trucks with Serbian licence plates and Serbian goods from entering its territory, Kosovo-online reported on July 31, citing the head of the Kosovo Businesses Alliance.

This ban has severely disrupted trade between the two countries and has dealt a heavy blow to Serbia's economy.

According to Agim Shahini, the president of the Kosovo Businesses Alliance, goods from Bulgaria, North Macedonia and Albania are now being sought as alternatives to replace the annual import of approximately €370mn worth of goods from central Serbia. Shahini also highlighted that Serbia's daily losses, factoring in collateral damage, amount to €1mn.

Shahini emphasised that while Kosovo is also experiencing losses, they are significantly less than those faced by Serbia. He attributed these economic challenges to the actions of politicians in both Kosovo and Serbia.

Shahini emphasised the need for a resolution to facilitate the movement of goods, capital, and people between Kosovo and Serbia without impediments.

He also said that the ongoing blockade is discouraging potential investors from considering Kosovo as a favourable investment destination as the current situation creates uncertainty, negatively impacting investor interest in Kosovo.

Despite numerous appeals from the EU, US, business associations and companies to lift the blockade, and despite alarming estimates of the severe damage to Kosovo's already struggling economy, the government led by PM Albin Kurti remains resolute in maintaining the blockade.