British-Serbian Chamber of Commerce

British-Serbian Chamber of Commerce

Room for Further Improvement

UK Business & Investments in Serbia 2010

Guide to

EDITOR IN CHIEF Tatjana Ostojić, t.ostojic@cma.rs ASSISTANT EDITORS Philomena O’Brien, p.obrien@aim.rs Vesna Milinković, v.milinkovic@aim.rs

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A STEP FORWARD H.E. Mr. Stephen Wordsworth, Ambassador to Belgrade

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FOCUS ON SERBIA Crina Ancuta, General Manager, GlaxoSmithKline Serbia & Montenegro

ART DIRECTOR Tamara Ivljanin, t.ivljanin@cma.rs DESIGNER Ilija Petrović, i.petrovic@aim.rs

SERBIA A COMPETITIVE TAX ENVIRONMENT MBA Tamara Dmitrovic, Manager of Tax & Legal, Deloitte d.o.o.

QUEEN ELIZABETH II

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PHOTOS Slobodan Jotić, Darko Cvetanović TRANSLATORS Snežana Bjelotomić ADVERTISING SALES Vesna Vukajlović, v.vukajlovic@aim.rs; Marija Savić, m.savic@aim.rs GENERAL MANAGER Ivan Novčić, i.novcic@cma.rs

APPRECIATING THE DIFFERENCES Mark Harrison, Principal, Harrisons Solicitors

POSITIVE TENDENCIES Vesna Arsić, State Secretary in Charge of Foreign Economic Relations in the Ministry of Economy and Regional Development of the Republic of Serbia

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EDITORIAL CONTRIBUTORS Ana Stojanović

CONTENTS 28

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RISING FROM THE CRISIS Facts & figures THE BRITISH COUNCIL Long history – new ideas

ENCOURAGING SIGNALS Nick Groves, Head of Trade and Investment, British Embassy in Belgrade

FINANCIAL DIRECTOR Ana Besedić, a.besedic@cma.rs

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THE BIGGEST UK INVESTOR Kristian Kornerup, General Manager, British American Tobacco (BAT) East Balkans

EDITORIAL MANAGER Tanja Banković, t.bankovic@cma.rs PRINTING Rotografika d.o.o.

Segedinski put 72, Subotica

FDI FOREIGN DIRECT INVESTMENT - UNITED KINGDOM “UK Business & Investments in Serbia 2010” published by: alliance international media in association with British-Serbian Chamber of Commerce and British Embassy in Belgrade Kneginje Zorke 11b, 11000 Belgrade, Serbia Phone: +(381 11) 308 99 77, 308 99 88 Fascimile: +(381 11) 244 81 27 office@allianceinternationalmedia.com www.allianceinternationalmedia.com ISSN no: 1451-7833 All rights reserved alliance international media 2010

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THE NEXT STEP – IMPLEMENTATION Djordje Igric, Partner at law office Baklaja Igric Mujezinovic

TOURISM Olympics 2012 – A Huge Opportunity

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FOR BETTER BUSINESS LINKS James Thornley, member of the British-Serbian Chamber of Commerce’s Board of Directors and Partner in KPMG, Belgrade

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CULTURE A Land of Tradition

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DEFICIT STILL PRESENT Trade exchange between Serbia and Great Britain

A Step Forward

by H.E. MR. STEPHEN WORDSWORTH, British Ambassador to Serbia

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erbia and the United Kingdom have been longstanding partners, dating back to 1837 when diplomatic relations were first established.

Over the decades, relations between the two countries have matured to the point where they have arguably never been broader or more developed, as the United Kingdom supports Serbia towards its strategic goal of full membership of the European Union.

And as Serbia has progressed towards European integration and has opened its economy to greater collaboration with foreign businesses, so the economic relationship between the United Kingdom and Serbia has grown. With in excess of fifty British companies directly represented here, and many others distributing their goods and services through local partners, bilateral trade has increased steadily over the past several years.

The British Embassy in Belgrade has a significant role to play in highlighting the opportunities in Serbia to British companies Due to the growing significance of the economic relations between our countries, but also in recognition that there are still many further opportunities to exploit, Serbian and British businesses took the step last year to establish the British-Serbian Chamber of Commerce, with a pres-

ence both in Belgrade and London. Additionally, the Serbian government has recently decided to create the new position of Economic Counsellor at its Embassy in London. Taken together, I expect this will give a welcome boost to the profile of Serbia in the eyes of those British businesses looking for new opportunities abroad.

Another group that is keen to expand the economic relationship between the United Kingdom and Serbia is the Serbian City Club, which counts almost 800 members from among Serbian professionals working in the City of London and around the UK. It is primarily a networking organisation, but also seeks to bring business expertise back to Serbia, whether through helping professionals return or by simply strengthening the links between the two countries’ business communities.

I had the pleasure to attend the Belgrade launch of the Serbian City Club in May this year.

Of course, the British Embassy in Belgrade has a significant role to play in highlighting the opportunities in Serbia to British companies, as well as supporting those that have already made the decision to do business here.

This year, the commercial team in the Embassy expects to be busier than ever as companies look abroad as the recovery begins to take hold.

I trust this special supplement will give you a good insight into the extent of current economic co-operation between the United Kingdom and Serbia, as well as possible future areas for development. I look forward to a continuing positive trend as Serbia works towards the achievement of its European goals.

UK Business & Investments in Serbia 2010 / 5

corporate GlaxoSmithKline

FOCUS ON SERBIA “I see the Adriatic region as another big growth opportunity for GSK Pharma Europe,” announced Eddie Gray, President of GSK Pharma Europe, during his recent visit to Serbia.

GSK in the Adriatic has the objective of significantly increasing its business by 2015, counting on Serbia as one of the leaders in this market

By Sanja PANJESKOVIĆ As a research-based pharmaceutical company, headquartered in the UK and with around 99.000 employees in over 100 countries, GlaxoSmithKline (GSK) is one of the industry leaders, with an estimated seven per-cent of the world’s pharmaceutical market. GlaxoSmithKline has a challenging and inspiring mission: to improve the quality of human life by enabling people to do more, feel better and live longer.

This mission gives the company the purpose to develop innovative medicines and products that help millions of people around the world.

GSK is committed to tackling the three “priority” diseases identified by the World Health Organization: HIV/AIDS, tuberculosis and malaria. The company produces medicines that treat major diseases areas such as asthma, virus control, infections, mental health, diabetes and digestive conditions.

As a company with a firm foundation in science, GSK has a flair for research and a track record of turning that research into powerful, marketable drugs. Positive steps have already been taken, with 30 late-stage assets currently in their pharmaceuticals and vaccines pipeline. Every hour more than £300,000 is spent to find new medicines.

GSK is also one of the world’s leading vaccine manufacturers, supplying around 25 per-cent of the world’s vaccines. They market over 25 vaccines worldwide to prevent potentially life-threatening or crippling illnesses such as hepatitis-A, hepatitis-B, diphtheria, tetanus, whooping cough, measles, mumps, rubella, polio, typhoid, influenza and bacterial meningitis. Their vaccines are included in immunization campaigns in 182 countries worldwide and during last year, 1.4 billion vaccine doses were delivered, of which nearly one billion were shipped for use in developing countries.

In July 2009 GSK acquired Stiefel Laboratories, the world’s largest independent dermatology company.

In November 2009 ViiV Healthcare was launched, a global specialist HIV company established by GlaxoSmithKline and Pfizer to deliver advancements in treatment and care

6 / UK Business & Investments in Serbia 2010

Crina Ancuta, General Manager of GSK Serbia & Montenegro for people living with HIV. GSK has been in Serbia almost twenty years. In the past, GSK’s growth in the Serbian market has been volatile, due to the unstable environment. Nevertheless, this market currently provides the basis for growth that will come from expanding the existing portfolios, developing the vaccines market, launching new products, establishing the company’s presence in oncology and regional business development initiatives. Within the Adriatic region - Serbia, Montenegro, Croatia, Bosnia-Herzegovina, Macedonia, Albania and

Kosovo - GSK has the objective of significantly increasing its business by 2015, counting on Serbia as one of the leaders in this market, which was confirmed and supported by the GSK European President’s recent visit to Belgrade.

“I am delighted by the team’s development of a sustainable growth strategy, based on investment in shaping the market, gaining market access and increasing share. Following in the steps of the Central Europe area, I see the Adriatic region as another big growth opportunity for Pharma Europe,” said Eddie Gray, President of GSK Pharma Europe.

According to Crina Ancuta, General Manager of GSK Serbia & Montenegro, the company has the aspiration to become one of the leading international companies in the local market and the respected partner for authorities and key business players.

Nowadays the pharmaceutical industry is experiencing a time of unprecedented challenge. Patent expiries, regulatory issues and increased pressures from healthcare providers have combined to create an environment where the sector is associated with lower growth and higher risk. GSK aims to sustain an industry-leading pipeline of products, ensuring that they demonstrate value for healthcare providers. As vaccination is one of the most cost-effective and successful of public health

interventions they are committed to delivering the most appropriate solutions for the Serbian healthcare system allowing both children and adults access to modern, high quality vaccines.

GSK is achieving its mission by not only providing medicines and vaccines but also through its involvement with local communities. Beginning in 2010 the representative office in Serbia is launching the Orange Day initiative - a day each year when all GSK employees are invited to help their local community through various volunteering activities.

GSK’s presence in Serbia for almost two decades, despite difficult and turbulent periods, is a demonstration of the company’s commitment and belief in the capacity of Serbian people and institutions to successfully overcome transitional difficulties.

This route has been challenging at times, nevertheless GSK is looking forward to its Serbian future with optimism.

“We believe there is sufficient capability and expertise, as well as growth opportunities - both of which are stimulating GSK to further expand its operations and explore potentials for closer cooperation with public, state and private stakeholders,” says Crina Ancuta.

GSK is one of the world’s leading vaccine manufacturers, supplying around 25 per-cent of the world’s vaccines

UK Business & Investments in Serbia 2010 / 7

interview Nick Groves, Head of Trade and Investment, British Embassy in Belgrade

ENCOURAGING SIGNALS

“Despite the problems, British companies want to remain and do business in Serbia. They see the potential, and they want to continue to grow here and to contribute to Serbia’s development.“ 8 / UK Business & Investments in Serbia 2010

By Tatjana OSTOJIĆ

T

he most important form of economic cooperation between Serbia and the UK is trade, and this has been increasing year on year.

Has the political situation changed, have economic circumstances changed and how are British companies now looking toward the Serbian market were just some of the questions we put to Nick Groves, Head of Trade and Investment at British Embassy in Belgrade.

You have said recently that political signals from Serbia were quite positive. Could you elaborate?

The political signals from Serbia have indeed been encouraging lately. The country now enjoys a fully implemented Interim Trade Agreement with the European Union, which simplifies procedures at the border and gradually removes customs tariffs on goods moving between Serbia and the European Union. This can only be good news for boosting volumes of trade, reducing expenses and deepening economic ties.

Following on from the Interim Agreement, Serbia also submitted its request to become a candidate for membership of the European Union, which sends a positive signal in demonstrating commitment to the path of reform, transparency and stability that membership implies.

Last but not least, Serbia achieved visa liberalisation with the Schengen states, meaning that Serbian citizens are able to move more freely within that zone. Not only does this help Serbian citizens experience “Europe” first hand, but it will also encourage business development by facilitating personal contacts.

What are the main requests that British companies have in terms of facilitating their arrival into Serbia?

The overwhelming number of British companies attracted to Serbia are looking at new markets to sell their goods and services, rather than to invest. I’m sure this is true of most companies investigating foreign markets. As such, British companies are looking for advice on the suitability of their product or service, the state of the relevant sector in Serbia, as well as the general political and legal outlook. They also want to know about business practices here, which can be significantly different to those at home. And, if a company decides that Serbia is a suitable market, it is of course looking for introductions to contacts who will make its arrival into Serbia as easy and successful as possible.

A smaller number of companies see Serbia as a potential investment destination and are looking for more detailed and complex information, as they will be making a much more substantial commitment. Their interests are based around getting to know influential decision-makers, gauging the predictability and stability of the market, understanding their rights and obligations and so on. They will also want to know more about Serbia’s competitive advantages, such as government incentives, access to markets, human resources, etc. Often the Embassy is a good starting point for introductions. Some of the more detailed issues are best tackled by lawyers and other professional service providers.

Are British companies going to come to this market only if there is a tighter economic collaboration in the region which means a bigger market and lower operating costs?

The overwhelming number of British companies attracted to Serbia are looking at new markets to sell their goods and services, rather than to invest Companies make their decisions based on their assessment of potential. “Potential” is a word that is often associated with Serbia. Some companies, including some from the UK, saw enough potential to invest in Serbia during the early days of privatisation, for example. Others may feel that the required level of potential has not been achieved yet.

In the final analysis, there are a great number of factors that influence a company’s decision on whether or not to set up a business in a new market. Of course, a bigger prospective market and lower operating costs are always going to be attractive to those looking to expand into new territories.

How attractive are the benefits arising from the CEFTA, The Free Trade Agreement and the Trade Agreement between Serbia and Russia to British companies?

Over recent years, Serbia has worked to insert itself more firmly into the global trading system. The Interim Agreement, CEFTA and the agreement with Russia are all elements of this. Arrangements with Turkey and Belarus have also been agreed upon, while others are under development.

THE FOOD SECTOR

T

he food sector is an area with great development potential. We have recently seen an interesting example of a UK company providing trade finance to a local fruit business, in order for it to exploit new markets in the UK. So far, the relationship has been very positive, and the British company is looking to find new clients in Serbia.

UK Business & Investments in Serbia 2010 / 9

interview Serbia is also negotiating to become a member of the World Trade Organisation. All these measures give confidence to businesses considering expanding their operations to Serbia.

Specifically, the free trade agreement with Russia is a strong selling point for Serbia, as it is one of the very few countries outside the former Soviet Union to enjoy such preferential access. It is very welcome that the agreement was recently expanded to include further classes of goods. British companies do enquire about how they might be able to take advantage of this arrangement.

ices, food processing, mining and tobacco. Other companies actively looking at Serbia are interested in renewable energy, spas and electronics.

Serbia’s ambitious investment programme also provides possibilities for the future, with energy being a sector of particular interest. Additionally, the British Embassy will be engaging throughout the coming year in a range of activities to highlight opportunities to British companies across a number of sectors where we think there is good potential for them to succeed. These include education, IT, chemicals and creative industries.

What else does the Serbian Government need to do in order to attract more foreign investments?

Serbia is just one of many countries competing for international investment, so it needs to understand what the opposition is offering, what its advantages are and what areas are in need of improvement. Indications of all this are given in surveys such as the World Bank’s Ease of Doing Business Report.

The 2010 survey shows Serbia relatively well placed against its pre-accession competitors, but also highlights some of the well-known issues, such as property registration, construction permits, the weight of bureaucracy and legal remedies.

In general, companies are looking for the highest degree of certainty that their investment will return a satisfactory profit. They would prefer that the political situation is stable, that the bureaucracy is manageable and transparent and that infrastructure is in place. They will also be interested to know that the country is capable of providing the quality of workforce they require, that corruption is minimised and that access to justice is straightforward. Of course, business costs need to be considered as well.

“Customer care” is also important. In return for their investment and acting as good business citizens, investors would hope for good access to the authorities, both for advice and assistance when setting up, but also in order to raise concerns and have their voice heard after they have established their business here.

What type of experiences are British companies operating in Serbia having? What are the problems they have to deal with, and what are the positive aspects of the Serbian market?

Overall, the experience of British companies in Serbia has been positive.

The majority are getting in and doing good business here. One of the positive points that has come through strongly has been that companies have been pleasantly surprised by the high level of expertise available in the labour market. This is especially true for those companies requiring specialised technical skills, such as engineering or IT. However, it is true that I tend to hear more at times of difficulty than I do when things are going well. Some of the frustrations that British companies have expressed to me have been uncertainty about the regulatory environment, corruption, lack of transparency in tendering procedures, difficulty in obtaining appropriate permits and difficulty in enforcing contracts.

But, despite the problems, British companies want to remain and do business in Serbia. They see the potential that I mentioned earlier, and they want to continue to grow here and to contribute to Serbia’s development.

The experience of British companies in Serbia has been positive

In your opinion, in which economic sectors do you think the two countries will collaborate the most?

Although the UK is a relatively small investor in Serbia, there are already companies operating across a wide range of sectors, including engineering, IT & media, security serv10 / UK Business & Investments in Serbia 2010

Have you been contacted by a Serbian company or a company with their headquarters in Serbia wanting to float their shares on the London Stock Exchange?

We have not had any direct approach from Serbian companies wishing to float shares on the London Stock Exchange, although we are aware that there have been rumours. No doubt, any companies seriously considering this option are consulting with expert advisers in London.

corporate Djordje Igrić, Partner, at law office Baklaja Igrić Mujezinović in association with Clyde & Co LLP

THE NEXT STEP - IMPLEMENTATION Greece, we may conclude that this region is not likely to see significant change in investment attitude from Britain in the period of the next 12 to 18 months. Hence, attention in this generally quiet investment period should be put into further improving the existing investment climate which inevitably includes additional legislative activity, and in particular, efforts enabling implementation of already adopted laws and regulations.

What are the most common problems that British companies in Serbia have been facing?

The problems faced by UK companies in Serbia vary from in-

“The problems faced by UK companies in Serbia vary from inefficient court procedures to the insufficient capacity of the public sector and infrastructure”

T

he law office of Baklaja Igrić Mujezinović has eleven lawyers and a unique association with Clyde & Co LLP, a leading international law firm operating in 120 countries. They focus on delivering a full range of legal services, especially those of a complex, high-profile, multi-jurisdictional nature and have an in-depth understanding of the local, legal and cultural complexities.

Baklaja Igric Mujezinovic specializes in the foreign direct investment sector. To what extent is Serbian legislation an obstacle to more British investors coming to Serbia?

Even in the period before the international financial crisis we did not see a significant number of UK companies investing in Serbia. On the list of foreign direct investments, companies from the UK are only in 15th place. The reasons for this can primarily be found in the fact that Serbia was never a traditional investment market for UK investors, as well as the perception of risk and political instability by the investors. In general, the Serbian legal framework cannot be perceived as an impediment for the participation of UK investors in Serbia, although frequent changes of legislation and the transitional status of the country may lead to a certain degree of ambiguity and uncertainty. The local legal framework enables various models for foreign investments and their repatriation, but foreign investors are often faced with situations which also apply to local businesses and relate to the limited possibility of enforcement and the challenging implementation of governing laws and by-laws. Keeping in mind the effects of the international financial crisis, the ongoing recession in Britain and the recent devastating experiences of investors in

efficient court procedures to the insufficient capacity of the public sector and infrastructure. Unfortunately, red-tape related problems caused as a result of ambiguity of legislation are often mentioned at the top of the list. However, it is fair to say that significant legislative activity has taken place in previous years improving the strength of the Serbian legal system and hence, enabling a higher degree of safety for foreign investors. In addition, the general legislative reform, the new Bankruptcy Law as well as the planned adoption of the new Companies Law and Enforcement Law are anticipated to have positive effects on the Serbian economy and general financial discipline. The ongoing reforms to the public sector and court system, which should enable more efficient implementation and enforcement of the Serbian legislation, still remain a challenge in the period ahead of us.

What are your plans for this and next year?

Lately we have seen reasonable growth in both our client base and the composition of our team. We have expanded our practice in the area of arbitration and have seen an increase in number of cases before the European Court of Human Rights in Strasbourg, where we seek the protection of clients‘ rights in cases where local courts failed to do so. Current plans include further expansion to the existing practice mainly focusing on commercial and company law, corporate finance, litigation and real estate and in emerging sectors such as renewable energy and public private partnerships (PPP). Plans also include further development of our regional aspirations and integrated services to clients wishing to operate not only in the Serbian market but regionally and internationally.

INVESTMENT OR PRIVATIZATION Considering the number of investments, it can be seen that greenfield and investments through the capital market were more frequent than participation in privatization procedures. This trend is likely to continue since the privatization process is coming to its end, and most public utility companies and communal sector companies are expected to raise some interest either in the privatization process or through PPP.

UK Business & Investments in Serbia 2010 / 11

interview James Thornley, member of the British-Serbian Chamber of Commerce’s Board of Directors

FOR BETTER BUS

The launch of the British-Serbian Chamber of Commerce was marked by a ceremony at the British ambassador’s residence in Belgrade, last year. The Chamber works on boosting trade and investment, expanding the property market and other economic activities between the UK and Serbia.

T

he British-Serbian Chamber of Commerce is a forum for businessmen and individuals which will work to improve relations between the two countries. It is a non-political, non-governmental organisation, and its primary aims are to help British companies find new opportunities in Serbia, and also to help Serbian companies showcase their goods to British buyers. We talked with James Thornley, about the economic cooperation between the two countries.

“Bureaucracy and the legal system are the two the most common hindrances for foreign companies in Serbia”

What are the most common problems that companies from your association have had to deal with in Serbia?

I believe that there are really two key areas that cause the 12 / UK Business & Investments in Serbia 2010

most concern. Bureaucracy is probably the greatest practical problem cited by investors. This isn’t just an issue in dealing with the state sector and public administration; similar issues can often exist within the private sector as well. Significant amounts of senior management time can often be taken up in dealing with these issues which to foreigners, especially those new to the region, often seem very trivial, heightening frustration. This issue is particularly acute within the real estate sector where the a recent IFC World Bank “2010 Doing Business” report ranked Serbia in 174th place out of at total of 183 countries, when it comes to obtaining construction permits. Recent legal changes regarding the transformation of land usage rights to freehold ownership have probably complicated and exacerbated this position further.

It is fair to note that this issue is being recognised by the country’s leadership and that initiatives are in place to try and improve this aspect of business life in Serbia via the current regulatory “guillotine” project, which should conclude this year. We are awaiting the outcome of this process with interest.

Secondly, the legal system is often very slow and inefficient, creating problems for those seeking to enforce their contracts or seeking damages or compensation through the courts. As also noted within the IFC World Bank report, referenced above, once a favourable decision in court is reached, it is typical to expect to wait 500+ days plus for execution, even if this is ultimately possible. Investors new to Serbia can often be surprised by their experiences within the court system.

Are your members in a position to devise long-term business plans in Serbia bearing in mind the frequent changes made to the country’s tax system?

At the basic level, the taxation environment within Serbia is one of the most competitive and stable in Central and Eastern Europe, with Serbia levying amongst the lowest rates of headline corporate, income and value added taxes

and Partner in KPMG, Belgrade

SINESS LINKS Inaugural members of the British Serbian Chamber of Commerce in this region. There are also generous investment credits available for investment and new employment.

However, it is true that investors have been surprised recently by sudden changes in tax infrastructure and these surprises can cancel out the very positive basic position. For example, a mobile telephone tax was announced in April 2009 for implementation in June 2009. This decision has certainly affected quite significantly the short and mid-term plans of the mobile operators and caused a wider concern over general fiscal unpredictability. The previously menBRITISH COMPANIES IN SERBIA

Historically and geographically the UK has not had great political or economic connections with Serbia.

Serbia has much stronger connections with its neighbours from Austria, Italy, Germany and Greece and we see this reflected in current direct trading and investment patterns. Having said this, the UK is one of the world’s largest trading nations and has Europe’s largest capital market. When one looks at the position from this perspective, one will very often find that British companies are involved in Serbia but in the background, for example as the ultimate provider of finance for a deal or a bank, or as the ultimate insurer, or as the legal or professional advisor. For these reasons, British companies are often very well informed of what is happening in Serbia.

tioned bureaucracy also impacts here, with tax inspectors carrying considerable discretionary powers. Special attention has also to be devoted to local taxes and fees imposed by municipalities, as recently we have seen a number of increases in these taxes. To be fair to Serbia in this area however, many other countries find themselves in a similar or worse fiscal position and it is quite likely that within the current economic and fiscal environment investors will face this risk quite generally.

To what extent does corruption affect operations of the Chamber’s members?

Serbia is in transition, which is well known to heighten the general risk of corruption. Investors who come to the country may well encounter such circumstances from time to time.

However, this aspect can often be overstated and needs to be properly understood. Corruption wasn’t invented in Serbia and exists in many far more far developed economic environments. British investors who approach transactions and issues as they would at home, for example by applying some scepticism over who and what they are dealing with, by ensuring that they are applying due care within their analysis and who involve the appropriate legal and accounting professionals, officials from the British Embassy and relevant local officials, should be able to manage these risks.

What is your personal experience with regards to doing business in Serbia?

UK Business & Investments in Serbia 2010 / 13

interview To what extent will these activities help in advancing the economic relations between Serbia and Great Britain?

This is our primary aim and we believe the organisation and facilitation of these kinds of events can only help this process. I believe it is clear from any analysis of the Serbian economy at this point that export facilitation and development are critical development priorities.

Milan Parivodić, a member of the Chevening Society High Council, and Chamber President David Roche signed a memorandum on cooperation between the two organizations.

I have been living and working in Serbia now for approximately eight years as a partner in KPMG. I believe that during that time, whilst there have been ups and downs, some very significant progress has been made. I have enjoyed my time here so far very much and believe the country retains excellent potential to develop further, and to take a regional leadership role which would be excellent for both Belgrade and Serbia as a whole.

Why there are fewer British companies investing in Serbia compared to the number of those from Austria or Italy?

As previously mentioned, for geographic and historic reasons, Serbia and the UK have not had the strongest of direct trading or investment ties. So far, the largest direct investment was the British American Tobacco acquisition of the tobacco manufacturer in Vranje in 2003 for approximately 87 million euro. However, there is much additional investment that comes indirectly or via investment funds or private equity firms which often base themselves in the UK. As an example, in late 2009 the UK based private equity firm CVC acquired the Central and Eastern Europe regional business of the former Inbev brewing group and, as such, acquired control over Serbia’s largest brewery, Apatinska.

There are many similar cases in other sectors and we could reasonably expect more.

We have strong links with the largest mutual investors and the related embassies and officials

What activities will the Chamber carry out in the coming period?

Our Chamber is still in its formative stages. At this point the primary focus is upon gaining a profile and seeking to support the development of business links between the two countries. Our aim is not to attempt to re-create a new AMCHAM or Foreign Investors Council, which acts and advocates very strongly for foreign investors generally within Serbia. We have strong links with the largest mutual investors and the related embassies and officials. So far, our activities have taken the form of various networking events held in both London and Belgrade. These have been well attended and demonstrate the respective interest that exists between business people in the two countries.

Going forward, I would expect this to continue, but to be perhaps extended out to the organisation and promotion of events outside of London or Belgrade or to those with a specific topic to provide support and information to business people in either of the countries’ regions or specific sectors. I believe the over-riding logic of our interest and support at this time is to try and facilitate and encourage the flow of investment and capital from the UK market to Serbia alongside provision of support to Serbian exporters of goods and services to the UK. 14 / UK Business & Investments in Serbia 2010

Could we expect a major British company to invest in Serbia soon?

It is probably unlikely that there will be a significant direct British investment within Serbia for the reasons already given. However, as we saw with CVC/Apatin in 2009 it is quite possible to imagine such a transaction occurring as part of a regional acquisition.

Did any British companies withdraw from or abandon investing in Serbia last year due to the global economic downturn?

I believe that we have had no significant cases identified to date.

What business results do you expect in 2010?

From the Serbian economic perspective, I believe that 2010 is likely to be again a very difficult year, with the effects of the financial crisis continuing to be felt. In Serbia which quite naturally, as a result of its on-going transition, relies upon in-bound foreign direct investment this will continue to be felt very strongly. Notwithstanding this, there do appear to be signs of progress in Q2 2010 and hopefully a small positive GDP result can be achieved overall. If this is the case, then the stronger Serbian companies with clear strategies and

strong management should perform very well.

corporate

SERBIA – A COMPETITIVE

TAX ENVIRONMENT Tamara Dmitrovic, Manager of Tax & Legal, Deloitte d.o.o.

F

oreign Direct Investments (FDI) have a critical role in fuelling economic growth and enhancing economic development, especially in economies in transition, Whether FDI motives are revenue or cost related they enable the economies in transition to gain access to financial resources, advanced technologies and know-how.

The competitiveness of the tax system, in addition to political and macroeconomic stability, is recognized as one of the key factors in the international competition of attracting foreign investments.

The current tax system in Serbia offers comparative advantages, such as low tax rates, tax incentives and the application of an extensive Double Taxation Treaty network. Companies are subject to corporate income tax, VAT, property tax and social security contributions.

The standard rate of VAT is 18%, while the reduced rate of 8% applies to listed goods and services, including basic foods, medicines, personal computers etc. Since the introduction of VAT in 2005, the implementation of the VAT legislation has been smooth, while the deadlines for VAT refunds are generally met.

However, it is in the area of corporate income tax that the most competitive terms and incentives are found. The corporate income tax rate is 10%. Companies also benefit from tax incentives, which can decrease the effective corporate income tax rate from 10% to 5% or 0%. Furthermore, the tax losses can be carried forward for five years.

Corporate profits are subject to income tax at the company level. Taxable income includes income from business activities and income from property. Taxable income is based on the accounting profit, established in accordance with IAS, further adjusted for tax purposes for the amount of non deductible expenses and non taxable income.

Income derived by non-residents from dividends, royalties, interest, income from lease of movable and immovable property, is subject to 20% withholding tax. However, the withholding tax rate can be significantly reduced under an applicable Treaty. Capital gains derived by non-residents are subject to 20% tax, based on the tax authorities’ assessment.

Capital gains can be tax exempt under an applicable Treaty.

The main tax incentives include a tax credit for investment in fixed assets, and a tax incentive for large investments.

• A tax credit is granted for investment in fixed assets to the value of 20% (40% for small enterprises) of the investment made in the current tax year. The tax credit cannot exceed 50% (70% for small enterprises) of the tax due.

Any un-utilized credit can be carried forward for ten years, provided that the respective asset is not disposed of before expiry of this period. The credit is increased to 80% of the investment and there is no limitation of the tax liability/ credit, if the taxpayer is engaged in the following activities: agriculture, textiles, metal industry, recycling etc.

• The legislation also prescribes income tax relief for large investments in excess of 8 million EUR and employment of at least 100 additional employees for an indefinite period. The proportion of tax relief is set as the ratio between the investment in fixed assets and the total fixed assets, including the new investments. The tax relief applies from the first year in which the first taxable income is generated, after the above conditions are fulfilled.

With regard individual taxation, Serbian tax residents are taxed on their worldwide income, while non-residents are taxed on income derived from Serbian sources. An individual is deemed to be a resident of Serbia if he stays permanently in Serbia or has a place of habitual abode or centre of vital interests here. An individual is also deemed to be resident of Serbia if he stays in Serbia for at least 183 days within any 12-month period that begins or ends in the relevant tax year.

The system of individual income taxation in Serbia is a mixed one, involving cedular taxation of various kinds of income on the withholding basis (by the payer of income) or based on the tax authorities’ assessment. A global tax is levied on the annual level, for individual-tax residents with an annual net worldwide income in excess of the non-taxable threshold. Personal income tax rates vary from 10% (income from capital), 12% (salary tax) and 16% (effective tax rate for other income). Annual income tax rates are 10% and 15%.

INFO DELOITTE D.O.O. Terazije 8, Belgrade, 11000, Serbia Tel/Direct: + 381 (0)11 3812 163; Fax: + 381(0)11 3812 145 tdmitrovic@deloittece.com; www.deloitte.com/serbia UK Business & Investments in Serbia 2010 / 15

interview Vesna Arsić, State Secretary in Charge of Foreign Economic Relations in the Ministry of Economy and Regional Development of the Republic of Serbia

POSITIVE TENDENCIES

By Tatjana OSTOJIĆ

I

n terms of groups of countries, the EU states are the most important trade partners to Serbia. In 2009, a total of 53.7% of overall Serbian exports ended up in these countries, while 54.8% of goods that Serbia imported came from the EU. We also expect economic collaboration with one of the most developed countries in the world and Europe – Great Britain – to grow in line with the economic potentials of both countries and the current economic situation in the world - says Vesna Arsić, State Secretary in Charge of Foreign Economic Relations in the Ministry of Economy and Regional Development of the Republic of Serbia.

“We expect several large foreign investments to be made in Serbia quite soon, primarily in the hotel and catering industry, via the privatization of spas. British companies have expressed a strong interest in participating in these privatizations and relevant negotiations are currently taking place.”

LARGE RETAIL CHAINS

As far as I know, TESCO is not that interested in entering the Serbian market as yet. Once we overcome the global economic downturn and raise the population’s purchasing power, we will see more interest generated for investment in the retail sector.

16 / UK Business & Investments in Serbia 2010

Considering its volume of trade with Serbia, Great Britain is in 13th place. Is it realistic to expect that the trade exchange between the two countries will grow in the following period?

Based on the contacts that British companies have established with potential exporters from Serbia, as well as the interest expressed by these British companies, we expect Serbian exports to Great Britain to grow by the end of the year, and, if the economic indicators continue to go up, we anticipate several large foreign investments to be made in Serbia quite soon, primarily in the hotel and catering industry, via the privatization of spas. British companies have expressed strong interest in participating in these privatizations and relevant negotiations are currently taking place.

Although the trade exchange has been growing year on year, Serbia is still recording a deficit in trade with Great Britain. Do you expect this deficit to contract in the upcoming period?

Although, at the moment, Great Britain is not the biggest trading partner of Serbia, 2009 data shows that Serbian agriculture did record a surplus in trading with this country (the value of export stood at 13.8 million euro, while the import amounted to 10 million euro). The overall deficit has been reduced by 20% compared to 2008. In line with plans for Serbian businesses to have a more aggressive approach to foreign markets, our Ministry of Economy and Regional Development has sent 28 economic advisors to foreign countries in the capacity of economic ambassadors.

One of them will be stationed in London, and we expect quick progress to be made in trading with Great Britain this, as well as next year, i.e. for Serbia to export more to Britain thus reducing the existing trade deficit.

What Serbian products could end up on the British market soon?

The biggest Serbian exporters to Great Britain are the following: Tigar Tyres Pirot, U.S. Steel Smederevo, The Majdanpek Copper Pipe Factory, the Sevojno Copper Smelting Plant, Rumaguma Ruma, Elixir Group Šabac, K&K Electronics d.o.o. Belgrade, TRS Swiss Production Petrovaradin, Alltech-fermin from Senta, NIS Novi Sad, and JAT Tehnika Belgrade. The companies that import mostly from Great Britain are the following: Pharmaswiss Belgrade, Jugohemija Farmacija Belgrade, Maks Tim doo Belgrade, DIN Niš, Pharmanova Belgrade, Radix Belgrade, U.S.Steel Smederevo, Grand Motors doo Belgrade, Serbian Air Traffic Services Agency, Toyota Serbia, Delta DMD Belgrade, Marbo Product Belgrade, and Erma Belgrade. In accordance with devised plans, we hope that in 2010 and 2011 several renowned confectionary producers from Serbia (like Soko Štark), and the pots and pans producer Metalac from Valjevo, will export to the British market. Also, we expect agricultural exports to grow, especially the export of berries.

Let me also mention that Serbia has been exporting baby beef to Britain and the EU for number of years, and the quality of our meat is recognized there.

Is there a plan to implement certain measures in order to attract more British investments?

In the context of the state strategy for implementation of export orientated production projects, we are quite certain that exports to Great Britain will pick up. However, bearing in mind that attracting more FDIs is considered the basis of the country’s sustainable development in the future, our statesmen should use every single opportunity to promote investment possibilities in Serbia while they are abroad.

Several business conferences and fairs have been organized in Great Britain in the past. Serbia exhibited at the FDI Expo in London and participated in investment meetings in London, Birmingham and Leeds. Of course, these activities need to be more frequent. We do hope that the appointment of a new economic advisor to the Serbian embassy in London, together with efforts invested by business associations like the British-Serbian Chamber of Commerce, will raise the awareness of British companies when it comes to business advantages offered by the Serbian market.

How much do British investors know about the Serbian market?

We could say that they are somewhere in the middle when it comes to actually knowing the business environment in Serbia. Their knowledge is not that detailed as is that of the countries that are big investors in Serbia (Austria, Greece, Italy and Germany), but they are also not totally in the dark, so to speak (like the Far East countries or North America).

The IT sector, as well as car manufacturing and the electronics industry, are earmarked as the key sectors for future British investors

It seems that British companies are more interested in trading with Serbia rather than investing in it. What are the reasons for that?

Bearing in mind the size of the British economy, yes, it is true that Great Britain is not adequately represented as a foreign investor in Serbia. With a total of $370 million invested in Serbia so far, the country did not make it to the top ten investor countries, and the reason for this lies in the way the British economy is structured. This economy is very much service orientated (banking, consulting, IT).

British banks don’t find the Serbian banking sector that appealing, unlike IT companies, who have been collaborating with their Serbian counterparts for quite a while. However, the money invested by British IT companies in Serbia is not that substantial. If we are talking about production and export orientated sectors, which we consider the priority when it comes to attracting FDIs, investors from other countries have been more active in that respect than British companies. For example, we have had quite a few German car parts manufacturers and Italian textile companies making large investments here in the last few years.

What business sectors in Serbia could be appealing to British investors?

We expect British companies to show heightened interest in the software industry and the real estate sector. The IT sector, as well as car manufacturing and the electronics industry, are earmarked as the key sectors for future British investors. In line with the amendments made to the Act on the Condition and Format of Attracting FDIs, companies wishing to invest in the IT sector can count on being given state grants ranging from 5,000 to 10,000 euro per new job they create, providing they employ at least 10 people and implement their projects in the so-called “areas of special importance”, like Niš, Kraljevo, Zaječar and Novi Pazar. The most appealing projects in the real estate sector are certainly residential housing and the construction of retail facilities.

Also, I would like to mention the energy sector, especially generating electricity from renewable energy sources. Also, there are strong indications that British investors are quite interested in our spa tourism.

UK Business & Investments in Serbia 2010 / 17

history

The United Kingdom of Great Britain and Northern Ireland

DEVELOPING WESTERN IDEAS On April 12th, 1606, a proclamation of James I of England, by Orders in Council officially stated the term: Kingdome of Great Britaine. This proclamation ordering an amalgamation of the English and Scottish flags, initiated the design of the current Union Flag, and also the term “Kingdom of Great Britain�

On May 1st, 1707, this Kingdom of Great Britain was created by the political union of the Kingdom of England (which included Wales) and the Kingdom of Scotland. This event was the result of the Treaty of Union that was agreed on July 22nd,1706 and then ratified by both the Parliament of England and Parliament of Scotland, each passing an Act of Union in 1707. Almost a century later, the Kingdom of 18 / UK Business & Investments in Serbia 2010

Ireland, already under English control by 1691, merged with the Kingdom of Great Britain to form the United Kingdom with the passing of the Act of Union 1800. Athough England and Scotland had been separate states prior to 1707, they had been in personal union since the Union of the Crowns in 1603, when James VI King of Scots had inherited the throne of the Kingdoms of England and Ireland and moved

his court from Edinburgh to London.

The United Kingdom played an important role in developing the Western ideas of the parliamentary system as well as making significant contributions to literature, the arts, and science. The UK-led Industrial Revolution transformed the country and fuelled the growing British Empire. During this time the UK, like other great powers, was involved in colonial exploitation, including the Atlantic slave trade, although with the passing of the Slave Trade Act in 1807 the UK took a leading role in combating the trade in slaves.

After the defeat of Napoleon in the Napoleonic Wars, the UK emerged as the principal naval and economic power of the 19th century (London was the largest city in the world from 1831 to 1925) and remained an eminent power into the mid 20th century. The British Empire expanded to its maximum size by 1921, gaining the League of Nations mandate over former German and Ottoman colonies after World War I.

substantial North Sea oil revenues and economic growth.

The premiership of Margaret Thatcher marked a significant change of direction from the post-war political and economic consensus.

The United Kingdom was one of the 12 founding members of the European Union at its launch in 1992 with the signing of the Maastricht Treaty. Prior to that, it had been a member of the EU’s forerunner, the European Economic Community (EEC), from 1973.

The end of the 20th century saw major changes to the governance of the UK with the establishment of devolved national administrations for Northern Ireland, Scotland, and Wales following pre-legislative referenda

CONSTITUTION

The United Kingdom was one of the 12 founding members of the European Union at its launch in 1992 with the signing of the Maastricht Treaty.

More than 885,000 British soldiers lost their lives on the battlefields of World War I. Disputes within Ireland over the terms of Irish Home Rule led eventually to the partition of the island in 1921. Concurrently, victory for Sinn Féin in the 1918 general election, followed by a war of independence in Ireland led to Dominion status for the Irish Free State in 1922 with Northern Ireland opting to be part of the UK. As a result, in 1927, the formal name of the UK was changed to its current name, the United Kingdom of Great Britain and Northern Ireland.

The Great Depression broke out at a time when the UK was still far from having recovered from the effects of the World War I. The United Kingdom was one of the three main Allies of World War II. Following the defeat of its European allies in the first year of the war, the United Kingdom continued the fight against Germany in the aerial campaign known as the Battle of Britain. After the victory, the UK was one of the Big Three powers that met to plan the postwar world. World War II left the United Kingdom financially damaged. However, Marshall Aid and costly loans taken from both the United States and Canada helped the UK on the road to recovery.

Following a period of global economic slowdown and industrial strife in the 1970s, the 1980s saw the inflow of

APPOINTMENT OF NEW PRIME MINISTER

O

n the May 11th The Queen received the Right Honourable David Cameron and requested him to form a new administration. The Right Honourable David Cameron accepted Her Majesty’s offer and “Kissed Hands” upon his appointment as Prime Minister and First Lord of the Treasury The United Kingdom is a constitutional monarchy: Queen Elizabeth II is head of state of the UK as well as of fifteen other Commonwealth countries, putting the UK in a personal union with those other states. The Crown has sovereignty over the crown dependencies of the Isle of Man and the Bailiwicks of Jersey and Guernsey, which are not part of the United Kingdom though the UK government manages their foreign affairs and defence and the UK Parliament has the authority to legislate on their behalf.

The Constitution of the United Kingdom consists mostly of a collection of disparate written sources, includUK Business & Investments in Serbia 2010 / 19

history THE QUEEN

QUEEN EL HOUSE OF LORDS

T

he full, formal title of the House of Lords is The Right Honourable the Lords Spiritual and Temporal of the United Kingdom of Great Britain and Northern Ireland in Parliament assembled. ing statutes, judge-made case law, and international treaties. As there is no technical difference between ordinary statutes and “constitutional law,” the UK Parliament can perform “constitutional reform” simply by passing Acts of Parliament and thus has the power to change or abolish almost any written or unwritten element of the constitution. However, no Parliament can pass laws that future Parliaments cannot change.

The UK has a parliamentary government based on the Westminster system that has been emulated around the world - a legacy of the British Empire. The Parliament of the United Kingdom that meets in the Palace of Westminster has two houses: an elected House of Commons and an appointed House of Lords, and any Bill passed requires Royal Assent to become law.

The position of Prime Minister, the UK’s head of government, belongs to the Member of Parliament who can obtain the confidence of a majority in the House of Commons, usually the current leader of the largest political party in that chamber. The Prime Minister and Cabinet are formally appointed by the Monarch to form Her Majesty’s Government, though the Prime Minister chooses the Cabinet, and by convention HM The Queen respects the Prime Minister’s choices.

The Cabinet is traditionally drawn from members of the Prime Minister’s party in both legislative houses, and mostly from the House of Commons, to which they are responsible. Executive power is exercised by the Prime Minister and Cabinet, all of whom are sworn into Her Majesty’s Most Honourable Privy Council, and become Ministers of the Crown.

20 / UK Business & Investments in Serbia 2010

Alexandra Mary , officially Elizabeth II, by the Grace of God, of the United Kingdom of Great Britain and Northern Ireland and of her other realms and territories Queen, Head of the Commonwealth, Defender of the Faith Queen Elizabeth II is the queen regnant of 16 independent sovereign states known as the Commonwealth realms, listed here in order of length of possession by the Crown: the United Kingdom, Canada, Australia, New Zealand, Jamaica, Barbados, the Bahamas, Grenada, Papua New Guinea, the Solomon Islands, Tuvalu, Saint Lucia, Saint Vincent and the Grenadines, Belize, Antigua and Barbuda, and Saint Kitts and Nevis.

She holds each crown separately and equally in a shared monarchy, as well as acting as Head of the Commonwealth, and Supreme Governor of the Church of England. As a constitutional monarch, she is politically neutral Princess Elizabeth Alexandra Mary was born April 21st, 1926, in London. She was proclaimed queen on February 6th, 1952, upon the death of her father, George VI, and crowned on June 2nd, 1953.

Her husband was created Duke of Edinburgh on the eve of their 1947 wedding and styled Prince Philip in 1957. They have three sons, Charles Philip Arthur George (born 1948), Andrew Albert Christian Edward (born 1960), and Edward Anthony Richard Louis (born 1964) and a daughter Anne Elizabeth Alice Louise (born 1950).

Princess Elizabeth Alexandra Mary was born April 21st, 1926, in London. She was proclaimed queen on February 6th, 1952, upon the death of her father, George VI, and crowned on June 2nd, 1953.

IZABETH II

BRITISH MONARCHS THE STUARTS JAMES I and VI of Scotland 1603 -1625 James was the son of Mary Queen of Scots and Lord Darnley. He was the first king to rule over Scotland and England.

CHARLES l 1625 - 1649 ( English Civil War) THE COMMONWEALTH Declared May 19th 1649 OLIVER CROMWELL, Lord Protector 1653 - 1658 RICHARD CROMWELL, Lord Protector 1658 - 1659 THE RESTORATION CHARLES II 1660 - 1685 JAMES II and VII of Scotland 1685 - 1688 WILLIAM III 1689 - 1702 AND MARY II 1689 - 1694 William and Mary were to reign jointly ANNE 1702 - 1714

Queen Elizabeth II When Elizabeth became queen, post-war Britain still had a substantial empire, dominions, and dependencies, most of which achieved independence in the 1950s– 1960s. Her reign has seen a revolution in social behavior and attitudes, and increased prosperity.

Overall Queen Elizabeth II has provided the nation’s main symbol of continuity, and her many visits to Commonwealth and other countries have won her wide respect. In 2006 she celebrated her 80th birthday.

THE HANOVARIANS GEORGE I 1714 -1727 GEORGE II 1727 - 1760 GEORGE III 1760 - 1820 GEORGE IV 1820 - 1830 WILLIAM IV 1830 - 1837 VICTORIA 1837 - 1901 Victoria was the only child of Princess Victoria of Saxe-Coburg and Edward Duke of Kent, fourth son of George III. Her reign saw the British Empire double in size and in 1876 the Queen became Empress of India, the ‘Jewel in the Crown’. When Victoria died in 1901, after the longest reign in English history, the British Empire and British world power had reached their highest point. She had nine children, 40 grand-children and 37 great-grandchildren, scattered all over Europe.

EDWARD VII 1901 - 1910 HOUSE OF WINDSOR - Name changed in 1917 GEORGE V 1910 - 1936 His years on the throne were difficult; the First World War in 1914 1918 and the troubles in Ireland which lead to the creation of the Irish Free State were considerable problems EDWARD VIII June 1936 - abdicated December 1936 Edward was the most popular Prince of Wales England had ever had. Consequently when he renounced the throne to marry Mrs. Wallis Simpson the country found it almost impossible to believe. This was unacceptable to the Church. Edward abdicated in favour of his brother and took the title, Duke of Windsor. He went to live abroad.

GEORGE VI 1936 - 1952 George VI was very popular and well loved by the English people. The prestige of the throne was low when he became king but his wife Elizabeth and his mother Queen Mary were outstanding in their support of him. The Second World War started in 1939 and throughout the King and Queen set an example of courage and fortitude. They remained at Buckingham Palace for the duration of the war in spite of the bombing. The Palace was bombed more than once.

King George was in close touch with the Prime Minister, Winston Churchill throughout the war and both had to be dissuaded from landing with the troops in Normandy on D-Day. Queen Elizabeth II 1952.

UK Business & Investments in Serbia 2010 / 21

corporate Kristian Kornerup, General Manager, British American Tobacco (BAT) East Balkans

THE BIGGEST UK IN BAT Serbia will try to use knowledge and experiences from our companies in the developed markets and act actively, rather than proactively, in competing every day

By Ana Stojanovic

B

ritish American Tobacco (BAT) has been present in Serbia since 1996, and following the acquisition of a factory in Vranje it became one of the leading investors in the country and, by far, the biggest UK investor to date. The BAT investment and their experience with doing business in Serbia was a good reason to talk with Kristian Kornerup, General Manager, BAT East Balkans.

BAT has been in the Serbian market since 1996. How did you come up with the idea to buy DIV in 2003 and why?

As you said, BAT has been present in Serbia since 1996, and following the acquisition of the factory in Vranje, we became one of the leading investors in the country and, by far, the biggest UK investor. BAT always believed that the Serbian market was very important in South-East Europe, and that is reason we decided to take part in the privatization of the local tobacco industry in 2003. With its reform-oriented policy the government deserves the main credit for this, because it clearly stated its readiness to create the necessary conditions for foreign investments - setting up the legal framework, a stable financial sector and ensuring the functioning of market mechanisms. We regarded Serbia as a country and market with a safe and developed business environment and an improving infrastructure. We also saw the significant potential for export to the region as a logical result of consolidating the core market of Serbia. Unfortunately, due to certain limitations in the neighbouring countries, we have so far been unable to take any advantage of this potential.

What were BAT’s major investments and how much money did BAT spend on them in order to achieve today’s capacity and quality the production?

British American Tobacco has invested more than 114 million euros in the Vranje factory since 2003. This has included the building of a new factory and installation of infrastructure and production equipment. Since 2003, production volumes have increased four times and during this time Vranje has started to produce the leading BAT international brands such as Kent, Lucky Strike, Pall Mall and Viceroy. The investments we’ve made had a huge positive impact on our results and performance on the market, but there is certainly still room to grow further, provided that the business environment develops in a predictable and sustainable way.

What are BAT’s volume and market share results in Serbia?

Are you satisfied with these results and are you going to try to expand them?

Since BAT acquired DIV in 2003, we have kept a stable and strong number-two position in the Serbian market. Throughout the last seven years, there have certainly been ups and downs in our performance, but the most important thing for me at this moment is that we have put in place a sustainable and strong strategy which, I’m sure, will enable BAT to reach the highest market shares since 2003. Having said that, I could conclude that with the new strategy in place the progress we have made in Q1 this year is obvious, and we’ll give our best to further improve our performance and share of market.

Are you pleased with the results that you have made during 2010 and the outlook for the rest of the year? In your opinion has the Serbian market and have consumers recovered this year?

During 2009 we have undergone a rationalization and optimization of our business which has allowed us to focus entirely on the goals we have set for 2010. I am pleased to say that our new strategy, focusing mainly on the Dunhill and Pall Mall brands, has resulted in an increase in our volumes and our market share – a result we

THE MAIN BRANDS BAT has over 300 brands in its portfolio, but our strategy is based on our four Global Drive Brands - Dunhill, Kent, Lucky Strike and Pall Mall – and we offer all of these brands to Serbian consumers.

These brands cover the strategic segments that we want to play in - premium and value for money price segments - and they accounted for 27% of our overall global volumes in 2009. They grew by 4% in 2009, which is a very satisfying result considering the situation in the world economy last year and the problems every 22 / UK Business & Investments in Serbia 2010

company has been facing. On the profit side, I must say that we also had a successful year globally, because our numbers show that we grew our net revenue by 17% and our adjusted profit from operations by 20%. To put it in absolute figures, our profit from operations was 4.1 billion GBP and our profit after tax was 2.9 billion GBP. To sum up, our business is heading in the right direction globally, and we have enough evidence that we are doing our business in a sustainable and responsible way.

NVESTOR are more than satisfied with. We are on the right track to becoming the fastest growing tobacco producer in Serbia, but we have to stay focused and exert additional effort to achieve this goal. Overall the Serbian market and economy are slowly recovering, but we still face many challenges to overcoming the crisis.

How do you see the development of the market in Serbia and BAT’s position within it?

We believe that the Serbian market still hasn’t reached its true potential. After all, that’s the reason behind not only BAT’s investments, but also the investments of other tobacco companies. The Serbian tobacco market will surely follow the patterns and trends of other, more developed tobacco markets in Europe – including consumer behaviour, preferences and tobacco regulation. BAT Serbia will try to use knowledge and experiences from our companies in the developed markets and act actively, rather than proactively, in competing every day. We will try to tackle some of the impediments to our business at the moment - low overall value of the tobacco market, further excise harmonisation with the EU, consumers’ down-trading as a result of the economic crisis as well as the CEFTA agreement which entered into force in 2008, just to name a few. A stable and predictable regulatory environment is crucial for any investor, both domestic and foreign. BAT is one of the founders and board members of Foreign Investors Council (FIC), which is one of the leading business associations in Serbia. Through the FIC, BAT is continuously advocating for stability and predictability of the regulatory environment, in that way trying to develop Serbia’s investing climate.

Recently, the Statistics Office announced that Serbia had exited the recession in Q1 2010. What are your views on the business environment in Serbia today and in the near future?

Although the Serbian Statistics Office has reported positive GDP growth after four consecutive quarters of slump in 2009, thereby signalling an end to the recession, we still face challenges in the period ahead. By definition, a recession starts with two consecutive quarters of negative growth but ends after a single quarter of positive growth. In my opinion, Serbia is officially out of recession but the crisis is not over yet.

a favourable tax environment. A satisfied foreign investor is the best recommendation for new foreign investments. Formerly mentioned ear-marked taxes are definitely not a way to improve the environment for doing business, not only in the tobacco industry, but with other sectors as well. That’s why it is pivotal that there’s an ongoing, open, transparent and constructive dialogue among all the stakeholders and decision-makers in Serbia.

About a month ago, the new law concerning smoking in public places was adopted in parliament. What are your views on the law itself and its further impact on all the stakeholders involved?

First of all, our aim is certainly not to convince people to start smoking. Growth is an important element of our strategy, but that mainly refers to growth of our market share. Worldwide experience of radical public smoking bans shows that even the strictest of measures have not caused significant long-term adverse effects on the tobacco industry. The hospitality industry, on the other hand, has recorded sharp declines in sales and employment in countries with smoking bans in place. While BAT supports smoking bans in the premises of cultural, health and educational institutions, in other areas such as the hospitality industry a compromise should be reached for the reasons stated above. We are pleased that Serbia has adopted a well-balanced and enforceable regulation, addressing the needs of both smokers and non-smokers.

“A satisfied foreign investor is the best recommendation for new foreign investments.”

What are the main problems that you face in the Serbian market as far as doing business is concerned?

In addition to the political stability of the country, predictability of the regulatory environment is of crucial importance because it is a precondition for any kind of additional investment. Aside from a stable exchange rate regime, what is most important to us as investors is

UK Business & Investments in Serbia 2010 / 23

economy Trade exchange between Serbia and Great Britain

DEFICIT STILL P In 2009, the foreign trade volume dropped from $433.6 million to $316.9 million. The same year, exports stood at $107.2 million and imports at $209.7 million.

By Tatjana OSTOJIĆ

T

he most prominent format of the economic collaboration between Serbia and Great Britain is the exchange of goods, which has been growing year-on-year, with the deficit always being on the Serbian side.

In 2000, exports amounted to $33.7 million, and imports to $48.1 million. 2008 was the record year for the exchange of goods between the two countries which stood at $433.6 million. That year, exports stood at $156.5 million (in 2007

City Hall London

Fluctuations in trade exchange between Serbia and Great Britain

(in millions USD)

Year

Export

Import

Total

Balance

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

33,7 38,2 42,4 53,3 83,3 84,1 137,1 151,9 156,5 107,2

48,1 64,9 133,9 122,3 162,4 129,4 165,4 205,5 277,1 209,7

81,8 103,1 176,3 175,6 245,7 213,5 302,5 357,4 433,6 316,9

-14,4 -26,7 -91,5 -69 -79,1 -45,3 -28,3 -53,6 -120,6 -102,5

24 / UK Business & Investments in Serbia 2010

RESENT - $151.9 million), while the value of imports was $277.1 million (in 2007 - $205.5 million).

Due to reasons well known, foreign trade exchange dropped to $316.9 million in 2009. Last year, exports stood at $107.2 million, while imports were $209.7 million.

Since the political upheaval of 2000, trade between Great Britain and Serbia has been constantly growing. British American Tobacco (BAT) has been the biggest investor in past years. In 2003, the company bought the second biggest cigarette producer in Serbia, DIV, via privatisation. The total value of the acquisition was 87 million euro. Serbian company, Pirot-based Tigar was the largest exporter to Great Britain, which in 2005 amounted to 27 million euro worth of goods.

TRADE EXCHANGE STRUCTURE IN 2009 Last year, Serbian companies mostly exported the following products to Great Britain: pneumatic tyres, hotrolled products in coils, refined copper pipes, frozen raspberries, maize, copper and zinc alloy rods, jet fuel, turbo engine parts, digital cameras and furniture.

They also imported the following products from Great Britain: medication, cars (new and used), acetate cables, whiskey, books and brochures, dredges and loaders, diagnostic reagents, water filters and X-ray machines.

The biggest exporters in 2009 - Tigar-Pirot (in 2005, this company exported 27 million euro worth of goods to Great Britain), U.S.Steel Smederevo, Majdanpek Copper Pipe Factory, Sevojno Smelting Plant, Rumaguma from Ruma, Elixir Group from Šabac, K&K Electronics d.o.o.

Belgrade, TRS Swiss Production from Petrovaradin, Alltech-Fermin from Senta, NIS Novi Sad and JAT Tehnika from Belgrade.

The biggest importers in 2009 - Pharmaswiss Belgrade, Jugohemija Farmacija Belgrade, Maks Tim d.o.o.

Belgrade, DIN Niš, Pharmanova Belgrade, Radix Belgrade, U.S. Steel Smederevo, Grand Motors d.o.o. Belgrade, the Air Traffic Services Agency, Toyota Serbia, Delta DMD Belgrade, Marbo Product Belgrade and Erma Belgrade.

UK Business & Investments in Serbia 2010 / 25

economy 1. TOTAL INVESTMENT INFLOW In the period from 2001 to 2009, the total net value of money invested by Great Britain stood at $369.086 million, which means that this country takes 13th place amongst foreign countries that have invested in Serbia.

During the first two months of 2010, the net value of British investments stood at $70.466 million, which puts the country at first place, ahead of other foreign countries that invested in Serbia.

Foreign direct investments in cash, 2000 to June 2009

(in thousands USD)

No.

Country

Net FDI (in cash)

Share (in %)

1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

11.

12.

13.

14.

15.

16.

Austria Greece Norway Germany The Netherlands Italy Slovenia Russian Federation France Luxembourg Hungary Switzerland Great Britain Croatia Montenegro Other countries Total FDI in Serbia:

2,796,379 1,705,990 1,556,695 1,508,872 1,131,927 819,608 670,904 588,322 511,686 450,448 374,745 364,575 327,849 314,359 304,598 22,368 3,449,295

20,8 12,7 11,6 11,2 8,4 6,1 5,0 4,4 3,8 3,4 2,8 2,7 2,4 2,3 2,3 0,1 100,00

Net cash investments

(in thousands USD)

2001

2002

2003

2004

2005

2006

2007

2008

2009

1,225

6,618

20,631

79,620

63,330

135,915

26,584

14,536

74,065

Source: National Bank of Serbia 2. THE BIGGEST INVESTORS

The biggest investors (2002-2009) Company

Business activity

Investment type

Investment (in millions EUR)

British American Tobacco Ashmore Investment Management InterContinental Hotels Group Albon Engineering

Tobacco Food Tourism Automobiles

Privatisation Acquisition Greenfield Greenfield

87 60 31 18 Source: SIEPA

Note: Due to non-existent official data on total investments per company, the information presented here is generated from research conducted by SIEPA and it includes both the existing and planned investments. Although SIEPA always searches for the most accurate information possible, the Agency is not liable for possible errors in the presented data.

26 / UK Business & Investments in Serbia 2010

THE BRITISHSERBIAN CHAMBER OF COMMERCE On February 5th, 2009 H.E.Stephen Wordsworth hosted a reception promoting the BritishSerbian Chamber of Commerce

T

he British-Serbian Chamber of Commerce (B-SCC) has recently celebrated its second year of operations in Serbia. The Chamber was founded with the aim of advancing trading, industrial, financial, investment and cultural relations between the United Kingdom and Serbia. This initiative came at the perfect time for Serbia, bearing in mind the country’s aspirations toward EU membership.

The Chamber has been investing a lot of effort in creating a positive environment for the development of a bilateral business collaboration between the two countries. This year, the British-Serbian Chamber of Commerce is going to organize two conferences in London. One of them (being organized with the help of the Republic of Serbia’s Ministry of Agriculture, the EBRD and USAID) will be used as a promotional

vehicle for Serbian agriculture.

Considering the current financial situation, British businesses are searching for new markets or looking to expand their existing business operations via investment and the transfer of know-how and experience. The British-Serbian Chamber of Commerce can provide significant support to business partners from Serbia, helping to adjust business operations to the current market conditions, as well as to prepare them for the post-recession period.

The British-Serbian Chamber of Commerce is an association managed by its founding members, with the goal of creating new business opportunities and advocating premises that support the business interests of its members. At the same time, the Chamber will be promoting sustainable and responsible management to investors who are going to do business in Serbia.

THE BRITISH SERBIAN CHAMBER OF COMMERCE Jelena Krzanicki Akin Gump Strauss Hauer & Feld Eight Floor, Ten Bishop’s Square London E1 6EG, United Kingdom Jelena@britserbcham.eu www.britserbcham.eu

Dušan Filimonović Executive Director, British Serbian Chamber of Commerce mob: +381.64.2010.969 email: dusan@britserbcham.eu

UK Business & Investments in Serbia 2010 / 27

interview MARK HARRISON, Principal, HARRISONS SOLICITORS

APPRECIATING T „The largest investment was made

by British American Tobacco when they bought DIV in 2003“

“O

utside of business I first discovered Serbia in 1976 when I visited Belgrade for the first time. I have now lived here for over 12 years, and married and brought up my family here. I come from Yorkshire in the north of England, where people are very proud of their area and are very friendly and open. These are admirable qualities which I find in Serbian people, hence I think life, and fate, had always intended for me to end up in Serbia.

I certainly have no regrets!“ says MARK HARRISON for our special edition.

Mr. Harrison, you are one of the pioneers of British business in Serbia. Could you tell us how you came to “discover” Serbia?

A classic example of pure fate! I was working at one of the largest City of London firms in 1983. A Serbian lawyer was undergoing a placement from a leading Serbian bank at the firm. I saw him working late one night and took him out for a beer. I introduced him to life in London and he introduced me to the then, Yugoslav community in London. By the end of the 1980s I reckon I was acting for over fifty percent of the Yugoslav firms with offices in London, most of which were Serbian. Many of these were subsidiaries of larger companies based in Belgrade, so by the end of the 80s I was frequently visiting Belgrade. I convinced my law firm to open an office in Belgrade in 1991 but unfortunately events in the Balkans that year delayed my plans. So it was not until 18 years later I was able to achieve my personal ambition of opening the first ever international law firm in Serbia.

I SEE TREMENDOUS SYNERGY BETWEEN SERBIA AND BRITAIN IN AGRI CULTURE 28 / UK Business & Investments in Serbia 2010

After ten years of living in Serbia, what is your view of the overall economic collaboration between Great Britain and Serbia today? How much progress has been made in the last five or six years?

This question has to be put into the context of how British business views Central and Eastern Europe rather than Serbia itself. Serbia is no different than Slovakia, Hungary, Czech Republic or Poland to most British businesses. History shows that British business is very bad at crossing the English Channel.

For example, after sanctions were eased against Serbia in December 1995, I was personally asked by our Foreign Office to promote business and investment between Serbia and Britain.

It was a very difficult task, but had nothing to do with the pros or cons of Serbia. It was simply a reluctance of British business to look abroad for business possibilities. The largest invest-

HE DIFFERENCES ment was made by British American Tobacco (BAT) when they bought DIV in 2003. We acted for BAT. Since then, the focus has mainly been on attracting trade rather than large investments. There are many representative offices and subsidiaries of British companies in Serbia, but I would be hard pushed to identify many large companies thinking of investing in Serbia.

To what extent are British companies interested in coming to and investing in Serbia? What needs to be changed in order for London to express more interest in investing here?

I am a great believer that in a country, you should not spend most of your focus on the capital city. British manufacturing is predominantly based outside London, which is more of a services centre. Hence in my earlier days we hosted Serbian business seminars in cities such as Leeds, Newcastle, Manchester, Birmingham and Glasgow. I would place more emphasis on getting out into the heartland of British business rather than focusing on London. There is also a large diaspora in Britain and they can be of great value in helping improve investment and trade. For example, we sponsor the Serbian City Club comprising of 800 bright young professionals working in Britain.

They can be a potent force in helping our two countries work more together.

I believe Serbia has under-utilised its agricultural potential and we all know Serbia has to start increasing exports rather than heavily relying on imports. So there are opportunities! Looking at my own business area, English law firms also have a role to play due to their vast network of contacts with leading British businesses and professional experience. So, as Harrisons is the only English law firm in Serbia, I feel duty-bound to do all we can to help; in our own little way to promote Serbian-British trade by promoting and sponsoring events between the two countries. Every little bit helps!

LEGISLATION IN SERBIA, AS SUCH, IS NOT A BARRIER TO ENHANCED TRADE To what extent are Serbian laws harmonized with European ones, and does their non-conformity with the European standards negatively affect the business that British and other foreign companies do in Serbia?

I do not think non-conformity of certain Serbian laws with European laws is something which has a material effect on business between the two countries. Any British company coming to Serbia, like any other non-EU country, expects and appreciates the laws will be different and their business needs to adapt to them. Legislation in Serbia, as such, is not a barrier to enhanced trade.

What economic branches carry the biggest potential in terms of developing economic relations between the two countries?

Now that privatization is all but over in Serbia, there are cer The Serbian government plans to launch a competition tain areas which will be of prime interest to Serbia and where for managing public enterprises. Are you aware of any BritBritain has expertise. The financial and capital markets have to ish managers applying? mature in Serbia. London is the financial capital of the world, I hope British managers do apply as we have a great deal of so Britain has tremendous expeexperience to offer but I am afraid rience in this area. Infrastructure I do not see there being a rush of BUREAUCRACY and Roads-Britain has some of applications from Britain to comthe largest and most famous conpete on this. However, looking One of the big complaints we hear from British companies operating in the Serbian market is the amount struction, engineering and infraa bit more widely at this area, I of red tape or bureaucracy there is in doing business structure companies, coupled do think our respective governhere. There are so many papers to be filled in, so many with one of the world’s leading ments should consider how we places to get permissions or permits from, and a rathpools of talent for providing could use our British manageer inflexible approach by Serbian officials, rather than consultancy services in these arment skills and export them to a pro-active helping hand in sorting out minor iseas. Similarly in energy, in parSerbia. Perhaps under a British sues. This is why the Serbian government’s “guillotine” ticular renewable and alternative government backed programme idea is good, in trying to make it easier and more userenergy sources. Personally I see or through IFIs such as EBRD, friendly for foreign companies to undertake business tremendous synergy between or various NGOs, as Britain has and conduct trade with Serbia.

Serbia and Britain in agriculture. a lot to offer in this area.

UK Business & Investments in Serbia 2010 / 29

facts & figures

RISING FROM THE CRISIS D Great Britain is one of the world’s leading industrialized nations. It has achieved this position despite the lack of most raw materials needed for industry. It must also import 40% of its food supplies. Thus, its prosperity has been dependent upon the export of manufactured goods in exchange for raw materials and foodstuffs.

Within the manufacturing sector, the largest industries include machine tools; electric power, automation, and railroad equipment, ships, aircraft, motor vehicles and parts, electronic and communications equipment, metals, chemicals, coal, petroleum, paper and printing, food processing, textiles, and clothing 30 / UK Business & Investments in Serbia 2010

uring the 1970s and 80s, nearly 3.5 million manufacturing jobs were lost, but in the 1990s over 3.5 million jobs were created in service-related industries. By the early 21st century, banking, insurance, business services, and other service industries accounted for almost three quarters of the gross domestic product and employed 80% of the workforce. This trend was also reflected in a shift in Great Britain’s economic base, which has benefited the southeast, southwest, and Midlands regions of the country, while the north of England and Northern Ireland have been hard hit by the changing economy.

The main industrial and commercial areas are the great conurbations, where about one third of the country’s population lives. The administrative and financial center and most important port is Greater London, which also has various manufacturing industries. Metal goods, vehicles, aircraft, synthetic fibers, and electronic equipment are made in the West Midlands conurbation, which with the addition of Coventry roughly corresponds to the former metropolitan county of West Midlands. The industrial Black Country and the city of Birmingham are in the West Midlands. Greater Manchester has cotton and synthetic textiles, coal, TERMINOLOGY - GREAT BRITAIN AND UNITED KINGDOM

Great Britain is the official name given to the two kingdoms of England (the capital is London) and Scotland (the capital is Edinburgh), and the principality of Wales (the capital is Cardiff). Great Britain is divided into small regions called counties. Great Britain and the United Kingdom refer to different areas. Great Britain is very often, but incorrectly, used as a synonym for the sovereign state properly known as the United Kingdom of Great Britain and Northern Ireland or the UK for short. England, Scotland, and Wales are the three nations which together include all the land on the island. It is also a geographical term referring to the island on which the greater parts of England, Wales and Scotland are situated.

The City and chemical industries and is a transportation and warehousing center. Liverpool, Britain’s second port, along with Southport and Saint Helens are part of the Merseyside conurbation. Leeds, Bradford, and the neighboring metropolitan districts are Britain’s main center of woollen, worsted, and other textile production. The Tyneside-Wearside region, with Newcastle upon Tyne as its center and Sunderland as a main city, has coal mines and steel, electrical engineering, chemical, and shipbuilding and repair industries.

The country’s chief exports are manufactured goods, fuels, chemicals, food and beverages, and tobacco. The chief imports are manufactured goods, machinery, fuels, and foodstuffs The South Wales conurbation, with the ports of Swansea, Cardiff, and Newport, was historically a center of coal mining and steel manufacturing; coal mining has declined sharply, however, in many parts of the region. Current important industries also include oil refining, metals production (lead, zinc, nickel, aluminium), synthetic fibers, and electronics. In Scotland, the UK Business & Investments in Serbia 2010 / 31

facts & figures region around the River Clyde, including Glasgow, is noted for shipbuilding, marine engineering, and printing as well as textile, food, and chemicals production.

The Belfast area in Northern Ireland is a shipbuilding, textile, and food products center.

Great Britain has abundant supplies of coal, oil, and natural gas. Production of oil from offshore wells in the North Sea began in 1975, and the country is self-sufficient in petroleum. Other mineral resources include iron ore, tin, limestone, salt, china clay, oil shale, gypsum and lead.

The country’s chief exports are manufactured goods, fuels, chemicals, food and beverages and tobacco. The chief imports are manufactured goods, machinery, fuels and foodstuffs. Since the early 1970s, Great Britain’s trade focus has shifted from the United States to the European Union, which now accounts for over 50% of its trade. The United States, Germany, France and the Netherlands are the main trading partners, and the Commonwealth countries are also important.

The United Kingdom is currently the world’s sixth largest by nominal GDP and the sixth largest by purchasing power parity. It is the third largest economy in Europe after Germany’s and France’s in nominal terms, and the second largest after Germany’s in terms

London Stock of purchasing power parity. Its GDP PPP per capita is the 18th highest in the world. The United Kingdom is also a member of the G7, G8, G-20 major economies, the Commonwealth of Nations, the Organization for Economic Co-operation and Development, the World Trade Organization, and the European Union.

The United Kingdom is one of the world’s most globalized countries and the capital, London is a major financial centre for international business and com-

THE FACTS Land area: 241,590 sq km Total area: 244,820 sq km Population (2009 est.): 61,113,205 (growth rate: 0.3%); birth rate: 10.6/1000; infant mortality rate: 4.8/1000; life expectancy: 79.0; density per sq km: 652 Capital and largest city (2003 est.): London, 7,615,000 (metro. area), 7,429,200 (city proper) Other large cities: Glasgow, 1,099,400; Birmingham, 971,800; Liverpool, 461,900; Edinburgh, 460,000; Leeds, 417,000; Bristol, 406,500; Manchester, 390,700; Bradford, 288,400 Monetary unit: Pound Sterling (£) Languages: English, Welsh, Scots Gaelic Ethnicity/race: English 83.6%, Scottish 8.6%, Welsh 4.9%, Northern Irish 2.9%, black 2%,

32 / UK Business & Investments in Serbia 2010

Indian 1.8%, Pakistani 1.3%, mixed 1.2%, other 1.6% (2001) Religions: Christian (Anglican, Roman Catholic, Presbyterian, Methodist) 71.6%, Muslim 2.7%, Hindu 1%, other 1.6%, unspecified or none 23.1% (2001) Literacy rate: 99% (2003 est.)

Real growth rate: 3.1%.

Inflation: 2.3%.

Unemployment: 5.4%.

Arable land: 23%.

Agriculture: cereals, oilseed, potatoes, vegetables, cattle, sheep, poultry, fish.

Labor force: 30.07 million; agriculture 1.5%, industry 19.1%, services 79.5% (2004).

Industries: machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal,

petroleum, paper and paper products, food processing, textiles, clothing, other consumer goods.

Natural resources: coal, petroleum, natural gas, tin, limestone, iron ore, salt, clay, chalk, gypsum, lead, silica, arable land.

Exports: €358.6 billion f.o.b.

(2006 est.): manufactured goods, fuels, chemicals; food, beverages, tobacco.

Imports: €467 billion f.o.b.

(2006 est.): manufactured goods, machinery, fuels; foodstuffs.

Major trading partners: U.S., Germany, France, Ireland, Netherlands, Belgium, Spain, Italy, China (2004).

Communications: Telephones: main lines in use: 32.943 million (2005); mobile cellular: 61.1 million (2004).

Radio broadcast stations:

AM 219, FM 431, shortwave 3 (1998). Radios: 84.5 million (1997). Television broadcast stations: 228 (plus 3,523 repeaters) (1995). Televisions: 30.5 million (1997). Internet Hosts: 6.1 million (2006). Internet users: 37.6 million (2002).

Transportation Railways: total: 17,156 km (2005). Highways: total: 388,008 km; paved: 371,913 km (including 3,520 km of expressways); unpaved: 0 km (2005).

Waterways: 3,200 km. Ports and harbors: Aberdeen, Belfast, Bristol, Cardiff, Dover, Falmouth, Felixstowe, Glasgow, Grangemouth, Hull, Leith, Liverpool, London, Manchester, Peterhead, Plymouth, Portsmouth, Scapa Flow, Southampton, Sullom Voe, Teesport, Tyne. Airports: 471 (2006).

merce, the largest such in the world according the Global Financial Centers Index. The British economy is made up (in descending order of size) of the economies of England, Scotland, Wales and Northern Ireland. In 1973, the UK acceded to the European Economic Community which is now known as the European Union after the ratification of the Treaty of Maastricht in 1993. The UK entered its worst recession since World War Two in 2009 but climbed its way back into growth by 4th quarter of 2009. The recovery from the recession is expected to be slow.

The UK government expects annual growth in 2010 to be between 1% and 1.5%; latest figures show that GDP growth is expected to soar past predictions for 2010 with growth of 3.1%. The government also predicts that the UK economy will grow by between 3% and 3.5% in 2011, far stronger growth than its EU counterparts. The UK is still predicted to become the largest economy in the European Union by 2020, over-taking both Germany and France due to forecasted strong growth in the massive UK financial services sectors. Also, a strong rebound is expected in the UK manufacturing sector as

the British pound has fallen against the euro and dollar meaning British goods are cheaper abroad. This will take business from EU neighbours where goods have become more expensive due to a rise in the euro; latest figures show that UK manufacturing grew at its fastest pace for 15 years in the 1st quarter of 2010. The OECD has also stated that the UK economy is growing faster than all other G7 members apart from Canada.

UK Business & Investments in Serbia 2010 / 33

comment Dr Milan Parivodic, Chairman of Foreign Investors Service, Belgrade and former Minister of International Economic Relations, Minister of Finance and Advisor to the Prime Minister for Economy and Law

ROOM FOR IMPROVEMENT “In my opinion we can examine the relationship between Serbia and Great Britain on two levels – political and economic, with the economic level further being divided into investment and trade. “

By Philomena O’BRIEN

A

s the founder and chairman of a company whose purpose is to attract and secure efficient foreign investment, Dr Milan Parivodic is well positioned to comment on the economic relationship between Great Britain

and Serbia.

DOING BUSINESS IN SERBIA In 2005 and 2006, The World Bank revealed that Serbia was the fastest reforming country in the world in its analysis called “Doing Business in Serbia”. This report compared 155 countries in the world in the speed of doing reforms, and Serbia was placed first in 2005 and second (out of 177 countries) in 2006. At the same time the European Bank for Reconstruction and Development (EBRD) in 2005 and 2006 marked Serbia as the fastest reforming country out of their portfolio of 27 countries. So these results have been extremely positive. Admittedly Serbia is not as well placed now as it was then, and things have dropped off somewhat. I believe that Belgrade, apart from Athens, could be considered the capital of the heart of the Balkans. We are a city of two million people; perfectly located at the confluence of two great rivers; we have a high-quality level of human resource potential for all industries; a strong university that produces, amongst others, world class engineers, mathematicians and scientists.

All of these features are potentially very attractive to overseas investors such as Great Britain. In my opinion we can examine the relationship between Serbia and Great Britain on two levels – political and economic, with the economic level further being divided into investment and trade.

POLITICAL Let me start by saying that Serbia greatly appreciates the stance that Great Britain has in respect to the support for Serbia’s succession to the EU. Great Britain is unequivocally supporting Serbia in its path to succession to the EU, and this is of ultimate importance for us. At this time of “fatigue” it is significant that one of the three strongest members of the EU (apart from Germany and France), is supporting Serbia so open-mindedly. In terms of political connections between the two countries, they are as good and strong as they have been throughout most of our history - of course aside from 1999 which was the low point of our relationship with Great Britain. Our royal families have close ties; in both World War 1 and World War II, Britain assisted with the liberation of Serbia; subsequent to World War II there was a strong and positive relationship between Tito and the British State. So historically there has been a very strong political relation-

Serbia has to be able to receive the investments, have the infrastructure and capability to deliver a world class public service

34 / UK Business & Investments in Serbia 2010

ship between the two countries. Furthermore we congratulate England on her new government and we expect that political relations will continue to strengthen and improve. We have warm expectations of the new Tory administration in terms of reinforcing and intensifying our political ties on a new level.

INVESTMENT In terms of our economic relationship with Great Britain, it would be fair to say that we have a lot of room for improvement. We have to understand that Britain typically looks more toward the Commonwealth countries than this part of the world. This is not unique to Serbia but also applies to the entire region including Croatia, Romania, and Bulgaria - countries that are typically our competitors for attracting foreign investments. So the level of investment in Serbia up to now has been relatively low. The two largest recent investments have been from British American Tobacco who bought the second biggest cigarette producer in Serbia DIV, in 2003 in the process of privatisation for a purchase price of 87 million euro, and in 2007 when Greenhouse Investments entered into a joint venture with Tigar-Pirot for the production of rubber products to the value of 40 million euro. There have also been a number of smaller but notable investments.

A potential investment that is worth noting is the pending acquisition of two spas in Serbia. This would be of great importance and a wonderful boost to our tourism segment. The spas would benefit from the know-how and management skills that can be offered by the new investors, plus the capacity to attract customers through an existing, international network of selling spas. It is interesting to note that there has been no real move here from British banks and insurance companies which we have observed from many other parts of Europe. There is not a single English bank operating here, and this is telling in itself.

The CEFTA agreement of 2006 between the countries who are not part of the EU in this part of the world gives

Great Britain good reason to be interested in investing in Serbia. This agreement means that any country who makes a foreign direct investment into Serbia, may export customsfree to all the CEFTA members and also all the 27 countries of the EU. In addition, Serbia has a free trade agreement with Russia. So the result of this is that Serbia is able to offer unique investment opportunities - no other country in Europe offers these sorts of benefits. On our doorstep is a market of nearly 700 million people to whom a company can export to from Serbia, free of any customs charges. These sorts of benefits and advantages of investing in Serbia should be a very attractive to countries such as Britain. In addition Serbia has negotiated and signed a free trade agreement with Belarus, is finalising an agreement with Ukraine and is in negotiations with Turkey.

TRADE Trade between Great Britain and Serbia is stronger than investment, but still it is far below its achievable potential. In fact it still has quite a way to go to reach this potential. In terms of numbers, in 2007 overall trade between Great Britain and Serbia was 357 million USD, in 2008 overall trade went up to 434 million dollars, and in 2009 overall trade went down, mostly due to the economic crisis, to 317 million dollars. In 2009 the biggest exporters from Serbia were Tigar-Pirot (major producers of car tyres), US Steel Smederevo and Majdanpek Copper Pipe Factory. In 2009 the biggest importers from Britain were Pharmaswiss Belgrade, Jugohemija Farmacia Belgrade and Maks Tim doo. This is the basic structure of trade between the two countries. In my opinion, trade between Britain and Serbia is low due to a number of challenges that exist, namely: Serbia doesn’t have a great deal to export, the physical distance between the British market, there are shortcomings of Serbian industry in both quality and quantity. These are the issues of continuity of exports from Serbia.

UK Business & Investments in Serbia 2010 / 35

The British Council

LONG HISTORY  NEW IDEAS The British Council is working on a number of projects at the moment. Two key projects in the area of business and entrepreneurship are: Social Enterprise in Serbia and Skills for Employability • promoting access of people with disabilities to cultural institutions • helping to build a more diverse police service • training young community leaders • and introducing UK-produced citizenship materials into the school curriculum.

T

he British Council is the UK’s leading international organisation for educational and cultural relations. Around the world it has 7,900 staff in offices, teaching centres, libraries and information and resource centres in 110 countries.

THE ROLE OF THE BRITISH COUNCIL IN SERBIA The role of the British Council’s in Serbia is to support Serbia in its institutional reform, the development of skills for economic growth and the development of a more inclusive society on Serbia’s path to EU integration. Its partners within Serbia include ministries, university faculties, cultural institutions, the British Embassy, NGOs, OSCE and business partners.

The British Council has two key areas of focus in Serbia: 1) To provide learning opportunities to help develop professional skills by: • supporting teachers and learners of English • working with the Ministry of Education and other partners on VET reform • organising over 5,000 internationally recognised English language exams per year • and providing learning materials in partner-libraries in Novi Sad and Kragujevac.

2) Working with a range of partners to promote social inclusion by:

36 / UK Business & Investments in Serbia 2010

HISTORY OF THE BRITISH COUNCIL IN SERBIA Belgrade was one of the first eight cities in which the British Council opened its offices overseas. Their first office in former Yugoslavia was opened on 13th January, 1940.

It was known as the Yugoslav-British Institute and occupied the first two floors of the AngloAmerican-Yugoslav club in the heart of town, in the building that is today known as Albanija. At that time they had two main activities: running English language courses and an English kindergarten.

During the Second World War the work was disrupted, but was resumed as early as June 1945. The first British Council library was set up as part of the operation in 1946.

Development of cultural and technical cooperation was al-

Their first office in former Yugoslavia was opened on January 13th, 1940 so very rapid with first exchanges and visits taking place in 1947. Having moved premises several times and having had their office and library separated for almost 40 years, they settled into their current building on Terazije Street in January 2001. It is now some 100 metres away from the place where the first office began work as part of the Yugoslav-British Institute.

In 2008, the British Council across Europe redefined its role in order to ensure that what they do continues to contribute to stronger cultural relations within and beyond Europe in a rapidly changing environment. This year British Council is marking its 70th anniversary in Serbia.

CURRENT PROJECTS OF THE BRITISH COUNCIL, SERBIA The British Council is working on a number of projects at the moment. Two key projects in the area of business and entrepreneurship are: Social Enterprise in Serbia Social Entrepreneurs apply entrepreneurial skills to address social challenges. They provide others with the skills to set up organisations to address social or environmental change.

NGO’s need to find more sustainable ways of growing their business, particularly while facing decreasing external support. Adopting a social enterprise approach is a workable model for NGOs. Entrepreneurs are looking for opportunities to develop their business ideas and meet their need to bring positive social change to their communities International Foundations are moving away from traditional service funding for social services. Organisations such as the Gates Foundation are placing greater scrutiny on business models to improve sustainability.

Companies are looking for new ways to make an impact with their CSR investments and achieve their objectives at a time when they are under ever greater scrutiny over their social and environmental practices.

Governments are keen to explore different models beyond public/private partnerships for more efficient, sustainable ways of delivering services, which clearly demonstrate social returns on investment.

Young people want to work for themselves, in less formal structures; and are more aware of social and climate issues. Building their capacity is a priority.

The British Council’s “Social Enterprise” project will provide an international learning and networking programme, and has four core elements: 1. Raising awareness of the benefits which social enterprise offers to individuals, communities, business and government.

2. Supporting start-ups with easily accessible information, practical advice and identifying and developing social venture funds with partners.

3. Developing and implementing learning and mentoring programmes based on UK and international experiences in social enterprise development. A network of UK and Serbian partners will bring their expertise to develop training programmes, mentoring and awards schemes.

4. Linking and partnering social enterprises government institutions and communities in the UK with their counterparts in Serbia to develop and share new

approaches to address social, economic and environmental problems through social enterprise.

By bringing together all the different players in this field – UK social enterprises, donors, commercial partners with entrepreneurship as a pillar of their CSR, the Serbian government, NGOs and existing Serbian social enterprises – the British Council will create international partnerships, set agendas, build capacity, and contribute to institutional change. With this project they want to promote the concept of social entrepreneurship and provide an international learning and networking programme between the UK and Serbia. It will create partnerships across the public and private sectors. The project provides a platform for collaboration, exchange and learning from each other.

Skills for Employability “Skills for Employability” is an eighteen-country project (including Serbia) that promotes internationalism within the vocational education and training sector across South East Europe (SEE) and the United Kingdom.

The British Council has worked on developing skills to support economic growth, establishing networks with the government and other key partners in areas of enterprise, innovation and employment in Serbia. As an example, the Belgrade VET School of Hospitality and Tourism has developed a partnership with Lancaster and Morecambe College from the UK, developing a professional curriculum and expanding industrial market opportunities.

They are also working together with Junior Achievement in Serbia to organise a series of VET School student competitions with the aim to promote entrepreneurial skills of young people in Serbia. In April 2010 the British Council organised the International Challenge finals in Belgrade that gathered more than 60 students from 12 European countries.

For more information about the Council in Serbia visit www.britishcouncil.rs UK Business & Investments in Serbia 2010 / 37

culture

A LAND To millions of people all over the world, Britain is a land of tradition, and home to the Royal Family, Beefeaters and Bobbies culture, manufacturing, and transportation, and had a profound effect on the socio-economic and cultural conditions of the world. The social structure of Britain during this period has also played a central cultural role. More recently, the popular culture of the United Kingdom in the form of British television broadcasting, British cinema, literature, poetry and even “Brit-pop” is known and loved around the world.

B

ritain is the birthplace of Newton, Darwin, Shakespeare and the Beatles; home to the world’s largest foreign exchange market, the world’s richest football club (Manchester United), the inventor of the hovercraft and to JK Rowling, the author of the Harry Potter chronicles.

To millions of people all over the world, Britain is a land of tradition, and home to the Royal Family, Beefeaters and Bobbies. From Scotland to Cornwall, Britain is full of customs and traditions - many have very long histories, some are amusing and some are downright strange - but all are interesting and add to the rich tapestry that is the British way of life.

As a direct result of the British Empire, British cultural influence can be observed in the language and culture of a geographically wide assortment of countries such as Canada, Australia, New Zealand, South Africa, India, Pakistan, the United States, and the British overseas territories. These countries are sometimes collectively known as the Anglosphere. Innovations and movements within the wider-culture of Europe have also changed the United Kingdom and made it what it is today; Humanism, Protestantism, and representative democracy are all borrowed from broader Western culture.

The Industrial Revolution of the early 19th century, with its origins in the UK, brought about major changes in agri-

38 / UK Business & Investments in Serbia 2010

LITERARY GIANTS

Nearly every county in Britain can claim a ‘literary giant’ who has lived within their boundaries.

Lewis Carroll (Rev. Charles Dodgson) was born at the Vicarage at Daresbury, and was the author of well-known children’s books ‘Alice in Wonderland’ and ‘Alice through the Looking Glass’. In Daresbury Church there is a memorial window depicting the Cheshire Cat, White Rabbit and other characters from his stories. The Lake District was home to several writers and poets who were inspired by the beautiful scenery. Keswick in Cumbria boasts Charles Lamb, Coleridge, Southey and Shelley, who all lived there for a time. Dorset is known as Thomas Hardy country. He was born in Dorchester and his novels give an insight into the provincial life of the times. ‘Tess of the D’Urbervilles’ is his best known book Jane Austin lived in Chawton, Hampshire. Her novels ‘Emma’, ‘Mansfield Park’, ‘Pride and Prejudice’ and ‘Persuasion’ were all written there and she spent most of her life in Chawton. Old Commercial Road, Portsmouth, Hampshire is the birthplace of Charles Dickens (18121870). Dickens lived here for just five months before moving away from the Portsmouth area altogether as a small child. He did however return to Portsmouth to research his novel ‘Nicholas Nickleby’.

Famous playwright George Bernard Shaw, lived at

OF TRADITION Ayot St. Lawrence in Hertfordshire for 44 years until his death in 1950. His house is open to the public.

D. H. Lawrence was born at Eastwood, Nottinghamshire and the landscapes in some of his novels were based on this part of the county. He wrote ‘Sons and Lovers’, ‘Women in Love’ and ‘Lady Chatterley’s Lover’.

At Hucknall in Nottinghamshire one can visit the grave of Lord Byron. His family were refused permission to bury him in Westminster Abbey so he is interred with his ancestors.

Stratford-on-Avon in Warwickshire is of course the birthplace of William Shakespeare, who is widely regarded as the greatest writer in the English language. The famous Royal Shakespeare Theatre can be found in the town. Warwickshire can claim Mary Ann Evans, who used the pen name or nom de plume, of George Eliot for her novels. She was born at South Farm in Arbury Hall in 1819. Her most popular works were ‘The Mill on the Floss’ and ‘Adam Bede’.

Yorkshire has been made famous by the Bronte sisters, who lived at Haworth Parsonage. The Bronte Museum is in the old parsonage and is open to the public. Charlotte’s best known book is ‘Jane Eyre’, Emily wrote ‘Wuthering Heights’ and Anne was the author of ‘Agnes Grey’.

VISUAL ART

Since the foundation of the United Kingdom, the English tradition of painting is most notable for portraits and landscapes, and indeed, portraits in landscapes. Distinguished artists of this early period are Sir Joshua Reynolds (1723–1792), George Stubbs (1724–1806), and Thomas Gainsborough

(1727–1788). William Hogarth painted far more down-toearth portraits and satires, and was the first great English printmaker. The late 18th century and the early 19th century was perhaps the most radical period in British art, producing William Blake (1757–1827), John Constable (1776–1837) and William Turner (1775–1851), the latter two being arguably the most internationally influential of all British artists.

Visual artists from the United Kingdom in the 20th century AFTERNOON TEA

Britain is a nation of tea-drinkers - every day 165 million cups are consumed and each year around 144 thousand tons of tea is imported. Tea, that most quintessential of English beverages, is a relative latecomer to British shores. The custom of drinking tea dates back to the third millennium BC in China, though it was not until the mid-17th century that tea first appeared in England.

The institution of afternoon tea is believed to have originated in England in the early 1840s, from Anna, the seventh Duchess of Bedford, The Duchess would become hungry around four o’clock in the afternoon the evening meal in her household was served fashionably late at eight o’clock, thus leaving a long period of time between lunch and dinner. She asked that a tray of tea, bread and butter (some time earlier, the Earl of Sandwich had had the idea of putting a filling between two slices of bread) and cake be brought to her room during the late afternoon. This became a habit of hers and she began inviting friends to join her. This pause for tea became a fashionable social event.

A traditional English afternoon tea consists of a selection of dainty sandwiches (including of course thinly sliced cucumber sandwiches); scones served with clotted cream and preserves, cakes and pastries. Tea grown in India or Ceylon is poured from silver teapots into delicate bone china cups. To experience the best of the afternoon tea tradition, indulge yourself with a trip to one of London’s finest hotels or visit a quaint tearoom in the “west country”. Here the you can sample the world-famous Devonshire Cream Tea of scones, strawberry jam and the vital ingredient, Devon clotted cream, as well as cups of hot sweet tea served in china teacups. Be warned though that many of the other counties in England’s west also claim to have the best cream teas including Dorset, Cornwall and Somerset.

One can only know for sure by trying them.

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culture include Francis Bacon, David Hockney, Bridget Riley, and the pop artists Richard Hamilton and Peter Blake. Also prominent amongst twentieth century artists was Henry Moore, regarded as the voice of British sculpture, and of British modernism in general. As a reaction to abstract expressionism, pop-art emerged originally in England at the end of the 1950s. The 1990s saw the emergence of young British artists, Damien Hirst and Tracey Emin.

Lord Rogers of Riverside and Lord Foster of Thames Bank.

Rogers’ most iconic London buildings are probably Lloyd’s Building and the Millennium Dome, while Foster created the Swiss Re Building (aka The Gherkin) and the London City Hall Building.

MUSIC

ARCHITECTURE The architecture of the United Kingdom includes many features that precede the creation of the United Kingdom in 1707. Structures such as Skara Brae (a large stonebuilt Neolithic settlement), Stonehenge, the Giant’s Ring, Avebury and various Roman ruins dotted throughout the countryside are all part of the UK’s architectural heritage. Over the two centuries following the Norman conquest of England in 1066, and the building of the Tower of London, castles such as Caernarfon Castle in Wales and Carrickfergus Castle in Ireland were built. Many castles remain from the medieval period. It is interesting to note that in most towns and villages the parish church is an indication of the age of the settlement.

Modernism remains a significant force in UK architecture, although its influence is felt predominantly in commercial buildings. The two most prominent proponents are

The United Kingdom has been a major exporter and source of musical innovation in the modern and contemporary eras, drawing its cultural basis from the history of the United Kingdom, from church music, from Western culture and from the ancient and traditional folk music and instrumentation of England, Scotland, Northern Ireland and Wales. The early 1960s led to the explosion of the “British Invasion” of the United States spearheaded by The Beatles. From this point, rock music and popular music involved a British-American collaboration, with transAtlantic genres being exchanged and exported to one another, where they tended to be adapted and turned into new movements ... only to be exported back again. The United Kingdom has one of the world’s largest music industries today, with many British musicians known and loved around the world.

BROADCASTING The United Kingdom has been at the forefront of developments in film, radio, and television. Broadcasting in the UK has historically been dominated by the BBC, although independent radio and television (ITV, Channel 4, Channel Five) and satellite broadcasters (especially BSkyB) have become more important in recent years.

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CINEMA The UK has had a large impact on modern cinema, producing some of the greatest actors, directors and motion pictures of all time. Instantly recognisable names include Sir Alfred Hitchcock, Charlie Chaplin, David Lean, Laurence Olivier, Vivien Leigh, Audrey Hepburn, John Gielgud, Sean Connery, Richard Burton, Vanessa Redgrave, Michael Caine, Anthony Hopkins and Daniel Day Lewis. British actors and actresses have always played a significant role in international cinema, and Hollywood films with a British dimension have enjoyed enormous worldwide commercial success. Worldwide, many of the highest-grossing films of all time have had a British historical, cultural or creative theme. Films based on British historical events include The Titanic, Piracy in the Caribbean, Mutiny on the Bounty, The Great Escape.

Films based on famous people include William Wallace, Lawrence of Arabia, King Arthur, Elizabeth I, and films based on well known British stories include The Lord of the Rings, Harry Potter, James Bond, The Chronicles of Narnia, Sherlock Holmes, Frankenstein, A Christmas Carol, Charlie and the Chocolate Factory, Treasure Island and The War of the Worlds.

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tourism

OLYMPICS 2012  A Tourism is Britain’s fifth largest industry, third largest export earner and worth £115 billion a year. It employs 2.6 million people and supports over 200,000 SME’s. Overseas visitors contribute £3 billion to the Treasury every year. Research suggests that additional tourist turnover during 2007-17 is likely to be up to £2.1 billion. Of this, £1.4 billion will be spent in London, while the tourism gains for the rest of the UK will be £0.7 billion (these figures are currently under review).

It is expected that the 2012 Olympic Games and Paralympic Games will provide the UK’s tourism industry with a huge opportunity.

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HUGE OPPORTUNITY T he UK currency is pounds sterling (£). There are 100 pence in £1. Pennies (pence) come in 1p, 2p, 5p, 10p, 20p and 50p pieces. There is also a £1 and £2 coin. All sterling coins feature a portrait of the Queen’s head on one side. Bank notes come in £5, £10, £20 and £50. They are legal tender in England and Wales but are generally accepted throughout the UK, Isle of Man and the Channel Islands. Scotland issues its own bank

Popular tourist attractions and places of interest throughout Great Britain includes many castles, museums, art galleries, stately homes, royal palaces, zoos, gardens and theme parks in London, England, Scotland and Wales notes in £5, £10, £20, £50 and £100. They look very different to the English notes but are still in sterling. Most people in England will accept Scottish notes although some people may refuse them as they look different. Cash is accepted everywhere in the UK. Credit and debit cards can be used in nearly all shops but tend not to be accepted by mobile retailers like markets, ice cream vans and roadside vendors.

The UK has a temperate climate, with lows in the winter of down to -10°C and highs of up to 30°C in the summer. Although the UK is not large, the weather does differ slightly between the north, south, east and west. Scotland and Northern England tend to have slightly cooler temperatures and are quite likely to see some heavy snow in the winter months. In contrast, the south of England experiences warmer temperatures and is unlikely to see more than a few flakes of snow in the winter. The west of England and Wales tends to see slightly higher rainfall than the east.

The easiest and quickest way to get to the UK is by plane.

Heathrow is the world’s busiest airport and is Britain’s largest with 67 million passengers a year passing through its doors. Heathrow airport is situated 15 miles west of London and has planes flying to 170 destinations. Gatwick airport is the UK’s second largest airport and is located 29 miles south of London in Crawley, West Sussex. Gatwick airport

sends planes to about 200 destinations and over 34 million passengers arrive in the UK through this airport. Being an island means that the UK has numerous ports dotted around its coast. Passenger ferries operate between the UK and Ireland and to several countries in Europe. The English Channel is one of the busiest shipping lanes in the world and this means there is a lot of choice when it comes to choosing a ferry company.

Hyde Park LONDON TRANSPORT

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he London Public Transport Network is one of the biggest in the world and might seem little intimidating to new visitors. With access to buses, trams, over-ground trains and the famous london underground or ‘tube’, a day’s travel can be very expensive.

A London Travelcard is available with every London Pass and makes your sightseeing experience more relaxing and cost efficent

Buses and coaches are the cheapest form of public transport in the UK. There are bus stations in every town which then connect to the surrounding villages and other towns.

To travel longer distances, there are coach companies which offer a slightly more luxurious service The United Kingdom has over 248,000 hectares of beautiful countryside and more than 200 buildings and gardens of outstanding interest and importance. Popular tourist attractions and places of interest throughout Great Britain includes many castles, museums, art galleries, stately homes, royal palaces, zoos, gardens and theme parks in London, England, Scotland and Wales.

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tourism

LONDON Buckingham Palace’s 19 state rooms are open to visitors during August and September while the Queen makes her annual visit to Balmoral. The State rooms house some of the Royal family’s greatest treasures including paintings

by Rembrandt, Rubens, Poussin and Canaletto. They are also exquisitely furnished with some of the finest French and English furniture. The Changing of the Guard takes place in the forecourt of Buckingham Palace at 11.30 every day in summer, every other day in winter, and lasts about 45 minutes. The nearest tube stations are Green Park, Victoria, Hyde Park Corner and St. James’s Park.

The London Eye has now become one of the iconic sights of London. Opened in March 2000 the wheel is a metaphor for the turning of the century. The London Eye is 135m/443ft high and weighs 2100 tones. This is the UK’s most popular paid for visitor attraction, visited by over 3.5 million people a year.

Houses of Parliament and Big Ben: The business of Parliament takes place in two locations, the House of Commons and the House of Lords. Parliament exists to challenge the work of government, approve new laws and debate government policy and current issues. Westminster Hall is a striking building and is officially a royal palace. Standing on the banks of the river Thames the parliamentary buildings hold many important historical stories, most famously Guy Fawkes. Big Ben towers 96 metres high above Westminster and is open for tours for UK residents who have made arrangements with their MP. Unfortunately overseas visitors cannot climb the 393 steps to the top.

The National Gallery, situated in Trafalgar Square, houses the national collection of Western European painting from around 1250 onwards. There are masterpieces on display from Reubens, Van Gogh, Turner, Leonardo Da Vinci, Monet, Rembrandt and many many more. These pictures

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Hunsett Mill, Norfolk, England

Windsor castle is the largest and oldest occupied castle in the world and is one of the official residences of the Queen. belong to the public so entrance to see them is free.

The Royal Albert Hall is one of London’s most famous art venues. Each year, the venue is host to more than 350 performances ranging from local and community events to rock concerts, opera and lavish banquets. The Hall is also a famous landmark due to its distinctive oval shape. It has a seating capacity of over 5,500 allowing large audiences to see the likes of The Who, Dusty Springfield, Jimi Hendrix and Pink Floyd. There are tours open to the public from 10:30 to 15:30 every day except Wednesday. Times can vary depending on performance times so it is best to enquire in advance.

The Monument is the tallest isolated stone column in the world and was built as a memorial to the Great Fire of London. It was designed by Sir Christopher Wren and Robert Hooke and was completed in 1677. The Monument is situated at the junction of Monument Street and Fish Street Hill which is 202ft from the site where the Great Fire started in 1666. The height of the colossal column is also 202ft. Visitors to the Monument can climb the cantilevered stone staircase containing 311 steps to see some of the most breathtaking views of London.

Tower Bridge is one of London’s iconic sights and visitors to the exhibition will learn all about its history and how the bridge works.

When it was constructed in 1894, Tower Bridge was the most sophisticated bascule bridge of its time. Today you can see inside the engine rooms where the original steam engines were housed to power the bridge.

Trafalgar Square is a square in the centre of London and is named after the battle of Trafalgar. The focal point of Trafalgar Square is Nelson’s Column which towers 151ft above the square with an 18ft statue of Nelson on top.

Heritage wardens are present in the square 24 hours a day and can answer questions and advise tourists about local attractions.

Piccadilly Circus is a major junction in London’s West End where five roads intersect.

In between these busy roads is a public space containing the Shaftesbury memorial fountain and the statue of Eros Regent’s Park is located in North London, partly in Westminster and partly in Camden.

Most of its 410 acres is open parkland which contains a range of public amenities. There are

formal gardens, a boating area, sports pitches, tennis courts, a lake and wildlife areas. The north-east area of the park is home to London Zoo and the headquarters of the Zoological society of London. There are lots of events and activities on offer during the summer which includes an open air theatre, puppet shows, live music and wildlife watches.

ENGLAND Pleasure Beach in Blackpool is the UK’s top theme park attracting over five million visitors a year. In 2007 Pleasure Beach was ranked the 14th most popular theme park in the world with its combination of thrill rides, rollercoasters, water rides, amusements and shows. One of the most famous rides at 235ft is “The Big One”, Europe’s tallest roller coaster.

Stonehenge in Wiltshire, is a circle of ancient stones erected between 3000BC and 1,600BC. It is one of the most important prehistoric monument sites in Britain. It was constructed in three phases and it has been estimated that this took more than 30 million hours of labour.

The Bluestones and Sarsen stones were carried hundreds of miles to the Wiltshire site. Mystery surrounds the stone circle as to why it was built. Some think it was designed as a place to worship the sun, others believe it may have been a place of sacrifice.

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tourism

Stonehenge in Wiltshire, is a circle of ancient stones erected between 3000BC and 1,600BC. It is one of the most important prehistoric monument sites in Britain Chatsworth House, Derbyshire, offers visitors a treasure trove of modern and historic artifacts. Wander around the three floors where you can see magnificent displays of art, furniture, sculptures and paintings housed in ornately decorated rooms. From the grandeur of the 1st Duke’s Painted Hall and State Apartments with their rich decoration and painted ceilings, to the 19th century Library, Great Dining Room and Sculpture Gallery. There is just as much to see outside with 1000 acres of gardens described

by Alan Titchmarsh as ‘one of the best and most vibrant gardens in Britain’.

The Eden project in Cornwall is a large scale environmental complex comprising two domes that contain two different biomes, tropical and Mediterranean. The domes are strikingly constructed from hundreds of hexagons and a few pentagons made from tough plastic. The humid tropics biome is the largest greenhouse in the world and covers 3.9 acres. Inside the domes, you will see millions of plants including a rainforest, banana trees and bamboo with sculptures and art displayed throughout.

NATIONAL RAIL

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rain is undoubtedly the most scenic and relaxing way to visit Britain. Sit back as rolling hills, castles and ancient monuments glide past you. Britain’s national rail network connects over 2,000 stations covering all of the main cities and towns. The network is privatised, and is owned by many different companies, each serving different routes across Britain.

Donan Castle, Scotland Windsor Castle is the largest and oldest occupied castle in the world and is one of the official residences of the Queen.

It was originally built by William the Conquerer in the 11th century and has seen many extensions and fortifications

by English monarchs over the years. The State Apartments are open to the public from March to October and art lovers will be impressed by a collection of some of the finest paintings by Rembrandt, Canaletto and Gainsborough.

Edinburgh Zoo is one of the city’s top tourist attractions and is one of Europe’s leading conservation centres.

Visitors can also view George IV’s private apartments which are some of the most lavishly decorated rooms in the castle. St George’s Chapel is one of the finest examples of Gothic architecture in England. It is the spiritual home of the Order of the Garter, the senior order of British Chivalry

TRAINS IN SCOTLAND

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cotland has major rail stations in Aberdeen, Edinburgh Waverley and Edinburgh Haymarket, Glasgow Queen Street and Glasgow Central, Perth, Stirling, Dundee and Inverness.

There are regular cross-border railway services from England and Wales, and good city links.

You could even travel overnight on the First ScotRail Caledonian Sleeper train service from London and wake up to the sights and sounds of Scotland.

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Cardiff sits in the heart of the city and has served as a Roman garrison, a Norman stronghold and was extravagantly refurbished by architect William Burges in the Victorian era

established in 1348 by Edward III. Within the chapel are the tombs of ten sovereigns, including Henry VIII and his third wife Jane Seymour, and Charles I. More recently the Queen Mother was buried here. Windsor Castle is a working palace and may be closed for State functions so visitors are advised to check opening times before they visit.

SCOTLAND Edinburgh Castle is a formidable fort that was built

by David I on an extinct volcano is Scotland’s capital.

Originally built in 1130 the castle represents over 800 years of Scottish history and is a World Heritage site. St Margaret’s chapel was also built in 1130 and survives as the oldest building in Edinburgh. Edinburgh Castle was home to the Kings and Queens of Scotland when staying in the city. It was not as comfortable as Holyrood Abbey but offered far greater protection. All visitors can take a free guided tour around the palace where they can see the Great Hall built in 1511 and the State rooms where Queen Marie de Guise died in 1560 and her daughter Mary Queen of Scots gave birth to James VI in 1566.

Edinburgh Zoo is one of the city’s top tourist attractions and is one of Europe’s leading conservation centres.

In fact it is the only zoo in Britain that houses polar bears and koalas. It is also the first zoo in the world to house and breed penguins. The zoo is only three miles from the city centre and is situated on 82 acres of sloping parkland giving fantastic views across Edinburgh. Visitors can see 171 species and over 1000 rare and exotic animals from around the world and learn about their habitats. Visitors can enjoy a free hilltop safari ride, a range of activity programs and events.

Newark Castle sits proudly next to the river Trent in the centre of Newark in Nottinghamshire. Its foundations date back to Saxon times but it was developed as a castle by

the Bishop of Lincoln in 1123. Known as the Gateway to the North, the castle endured numerous sieges during the Baronial and English Civil war before it was partially destroyed in 1646. Today, visitors can take a guided tour into the castle’s towers and dungeons or visit the Gilsrap heritage centre where there are historic exhibitions on display.

The gardens have been painstakingly restored and have won a green flag award for their efforts. The castle hosts many special events including concerts, theatre productions and historic re-enactments.

WALES The National Museum in Cardiff is an art gallery and musuem charting Wales’ history. The museum is home to the Welsh national collection of fine art and applied art as well as European art by famous artists like Monet, Van Gogh, Renoir and Cezanne. The national museum is not just an art gallery, it also has displays on archeology, natural history and geology. Visitors will find an amazing collection of natural history and science displays from the big bang theory up to present day Wales. Cardiff castle is one of Wales’ most popular tourist attractions with 2000 years of history behind it. The castle sits in the heart of the city and has served as a Roman garrison, a Norman stronghold and was extravagantly refurbished by architect William Burges in the Victorian era. The castle was home to many noble families until it ended up in the hands of the Bute family. The 2nd Marquess of Bute was responsible for turning Cardiff into the world’s greatest exporter of coal and the 3rd Marquess was famous for being the richest man in the world.

TRAIN

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he London Paddington to Cardiff service runs hourly and takes only two hours. It also continues to Swansea, with onward connections to West Wales. For North Wales, a high speed service runs from London Euston. There’s also a new rail service between London Marylebone, Shrewsbury and Wrexham. Links from the Midlands and North West are excellent - for example, hourly services from Manchester to the North Wales coast, or to Carmarthen via Cardiff and Swansea.

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COMPANY AGENA TECHNOLOGY Mr Ismet Grebovic, Manager Dositejeva 31, 22310 Simanovci, +381 22 408519 +381 22 408501 ismet.grebovicagenatechnology.com, www. agenatechnology.com AIRTREND GOBRID Mr Goran Kolic, Managing Director Kumanovska 14, 11000 Belgrade, Serbia +381 11 3836886, 3837733, 3085740 +381 11 344 41 13, gobrid@eunet.rs ALLIED PICKFORDS SERBIA Mr Jovica Grujic, Head of Operations Zarka Obreskog 23, 11273 Zemun-Belgrade, Serbia +381 11 8487744 +381 11 8486868 , movers@alliedpickfords.co.rs www.alliedpickfords.rs AL-GROSSO Mrs Ksenija Fekete Cvetkovic, Director Vodovodska 158, 11000 Belgrade, Serbia Phone / Fax: + 381 11 2509742, 2509793, 2509548 office@algrosso.com www.algrosso.com

REGISTER

ALTIS CHEMICALS DOO Ms Aleksandra Nijemcevic, Director Pozeska 15A, 23000 Zrenjanin +381 23 549412; 381 23 549412 aleksandra@altis-chemicals.com, www.altis.co.rs AMTEK DESIGN SERBIA DOO Mr John Elkington, Director Gospodar Jovanova 65, Flat 2, 11000 Belgrade +381 11 334 8068, + 381 11 334 8068 john.elkington@amtekgroup.co.uk, www.amtekgroup.co.uk ARCON OVERSEAS LIMITED Mr Sasa Zdravkovic, Director Vase Pelagica 16, 11000 Belgrade, Serbia 381 11 2651769, 381 11 3692236, arcon@sbb.co.rs www.arcon.co.rs ARUP Mrs Olga Djuric-Peric, Chair-Management Board Djordja Stanojevica 14, 11070 Belgrade, Serbia +381 11 2099850 +381 11 2287580, olga.djuric-peric@arup. com, www.arup.com

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ASTRA ZENECA Mr Dejan Sencanski, General Manager Augusta Cesarca 12, 11000 Belgrade, Serbia +381 11 3294542 +381 11 750402, dejan. sencanski@astrazeneca. com www.astrazeneca.com BASTARDA D.O.O. Mrs Julie-Ann Kovacevic, Director Višnjički venac 1/7, 11060 Belgrade, Serbia Phone / Fax: +381 11 2972-766, + 381 64 3988025 kontakt@bastardatrade. com prodaja@bastardatrade.com BDSP YU Mr Sinisa Stankovic, General Manager Bulevar Arsenija Carnojevica 54A/16, VI & VII floor, 11070 Belgrade, +381 11 3017791 +381 11 3017798 , bdsp@ bdsp.co.rs, www.bdsp. co.rs BPA LONDON DOO Mr Ivan Ristic, Project Manager Mr Malcolm MageeBrown, Director Ljubinke Bobic 8/16, 11070 Belgrade, Serbia +381 11 3182211

+381 11 3182211 i.ristic@bpalondon.biz www.bpalondon.biz BRITISH AIRWAYS Mrs Natali Brodnik Radovanovic, Country Manager Knez Mihajlova 30/IV, 11000 Belgrade, Serbia +381 11 3281303 +381 11 2639629 Natali.Brodnik@ba.com www.britishairways.com BRITISH AMERICAN TOBACCO SOUTH EAST EUROPE DOO Kristian Kornerup, General Manager Bulevar Mihajla Pupina 165G, 11070 Belgrade +381 11 3108700 +381 11 3108777 www.bat.com BUPA INTERNATIONAL BELGRADE MrNikola Lalic,Director Milovana Marinkovica 4, 11040 Belgrade, Serbia +381 63668833 bupayu@infosky.net www.bupa-intl.com COMPAIR SOUTH EAST EUROPE DOO Mr Zeljko N. Luketic, Managing Director Miroslava Cermaka 2, 11185 Zemun - Belgrade +381 11 3774533, +381 11 3774544,

sales@compair.com www.compair.co.rs CONING-PPI Mr Miloje Aleksic, Director HEAD OFFICE CONING-PPI d.o.o.

Kosovska 2, 21000 Novi Sad, Serbia Tel/fax: +381 21 / 557-392, 557-393, 557-483 conpping@eunet.rs BRANCH OFFICE CONING-PPI d.o.o.

Palmira Toljatija 4/55, 11070 Belgrade, Serbia Tel/fax: +381 11 / 269-8858, 319-40-86, 319-47-93 conppibg@eunet.rs www.coning-ppi.co.rs CUMMINS DIZEL MOTORI DOO Mr Slobodan Sretenovic, Director Autoput 22, PO Box 113, 11080 ZemunBelgrade +381 11 3149065, +381 11 3149127 office@cummins.co.rs www.cummins.co.rs DELOITTE DOO Mr Srdjan Petrovic, Adria Director (Tax Partner) Terazije 8, 11000 Belgrad +381 11 3812179, +381 11 3812178, spetrovic@deloittece.com, www.deloitteCE.com

COMPANY

DIV PRODUCTION PLANT Mr Mike Edwards, Operations Manager Stefana Prvovencanog 209, Vranje +381 17 401140 +381 17 21609 DOOSAN BABCOCK ENERGY LTD Mr Dennis Morrison, Site Project Manager Bul. Mihajla Pupina 10V/619,11070 Belgrade +381 11 3018774, dmorrison@doosanbabcock.com, www.doosanbabcock.com EC HARRIS DOO Mr Sasa Trajkovic, Senior Project Manager Bulevar dr Zorana Djindjica 144v, 11070 Belgrade +381 11 3535400 +381 11 3535401, sasa. trajkovic@echarris.com, www.echarris.com EFT ENERGY FINANCING TEAM DOO Mr Svetislav Bulatovic, Group Head of Sales and Trading Bulevar Mihaila Pupina 10b, 11070 Belgrade + 381 11 3011021, + 381 11 3011030, sveta@eft-group.net www.eft-group.net EMAC UPRAVLJANJE

INVESTICIJAMA DOO Mr Dusan Mijic, Regional Director Rudjera Boskovica 2c, 21000 Novi Sad, Serbia, + 381 21 47 41 060, +381 21 466 653 dmijic@emac-global.com www.emac-global.com EQUEST DOO (BELGRADE) Mr Vladan Zivulovic, General Manager Bulevar oslobodjenja 83, 11000 Belgrade, Serbia, + 381 11 3975643, + 381 11 3975643 belgrade@equest-partners.com www.equestbalkan.com ERNST&YOUNG Ms Mirjana Kovacevic, Country Managing Partner, Mr Fotis Demetriou, Partner Bulevar Mihajla Pupina 115d, 11070 Belgrade + 381 11 2095800, + 381 11 2095890 fotis.demetriou@gr.ey. com, www.eyuk.com G4S SECURITY SERVICES DOO MrDragisa Marinkovic,General Manager umodraska 240, 11000 Belgrade, Serbia, + 381 11 3092700,

+ 381 11 3092730 office@rs.g4s.com, www.g4s.com GLAXO SMITHKLINE (GSK) EXPORT LTD Ms Crina Ancuta, General Manager Omladinskih brigada 88, 11070 Belgrade, +381 11 3105700 +381 11 3105799 www.gsk.com GLOBAL SUBSTATION SOLUTIONS DOO Mr.Radomir Nedic, Operational manager The Sava Centre, Milentija Popovica 9, 11070 Belgrade +381 11 2206347, +381 11 2206093, radomir.nedic@gss. eu.com www.gss.eu.com; www. gss.co.rs HARRISONS SOLICITORS Mr Mark Harrison, Principal Terazije 34,11000 Belgrade +381 11 3615918, +381 11 3615030 mark.harrison@harrisonsolicitors.com, www. harrison-soilcitors.com HRG SERBIA &

MONTENEGRO Mr Predrag Spanjevic, Managing Partner Čubrina 4/4, 11000 Belgrade +381 11 3036016, +381 11 3283 304 , www. hrgworldwide.com IMI INTERNATIONAL Mr Zoran Jovanovic, Deputy General Manager Milutina Milankovića 1-b, 11070 Belgrade, +381 11 3111484, +381 11 3111484, zoran@ imi-international.rs, www. imi-international.rs INTERDEAN INTERNATIONAL RELOCATION BELGRADE Mr Vladan Jankovic, Sales Visnjicka 51, 11000 Belgrade + 381 11 2970 997, + 381 11 2970 997 vladan.jankovic@interdean.com, www.interdean.com KING STURGE DOO Mr Srdjan Vujicic, Managing Director PC Usce - Bulevar Mihaila Pupina 6, 11070 Belgrade +381 11 2200101, + 381 11 2200102, srdjan.vujicic@kingsturge. com

REGISTER

www.kingsturge.co.rs/en KPMG DOO Kraljice Natalije 11, 11000 Belgrade, Serbia, +381 11 20 50 500, nina. bulatovic@kpmg.rs www.kpmg.rs LAURENCE WALTER SERBIA Mr Vladan Paunovic, Director Kovinski put bb, 11300 Smederevo, Serbia, +381 26 653770 daca.kragovic@laurencewalter.com, www. laurencewalter.com LAW OFFICE BAKLAJA IGRIC MUJEZINOVIC IN ASSOCIATION WITH CLYDE&CO LLP Ms Selma Mujezinovic, Managing Partner Gospodar Jevremova 47/12, 11000 Belgrade +381 11 3038822, + 381 11 3038309, clyde@ clyde.co.rs, www.clydeco. com LINK CONSULTANTS Mr Zoran Radovanovic, Owner Omladinska 11a, 11000 Belgrade, Serbia Address, +381 11 3670264, + 381 11 3670557, sasa@link-group.com, www.link-group.com MACE DOO

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COMPANY Mr Branislav Simovic, General Manager Bulevar Mihaila Pupina 6/22, 11070 Belgrade + 381 11 2200250, + 381 11 2200265, office@mace.co.rs www.mace.co.rs MEDICO PHARM Dr Golub Konatar, Manager Kruzni put 36, 11309 Belgrade, Serbia Phone / Fax: + 381 11 3041620/637 + 381 11 3041600 www.medicopharm.com office@medicopharm.com MINECO PLUS DOO Mr Aleksandar Andrejevic, Director Vuka Karadzica 9, 11000 Belgrade, Serbia +381 11 3033317, +381 11 2632882 ala@mineco.ch MMD SE EUROPE Mr James Gunn, Regional CEO Obilicev Venac 6/10, 11000 Belgrade, Serbia, +381 11 303 6068, +381 11 334 2535 James.Gunn@mmdcee. com www.mmdcee.com/serbia MORSON BEOGRAD Mr Zoran Rudic, Director Decanska 12, 11000 Belgrade + 381 11 3034520, + 381 11 3034521 zoran.rudic@morsonbeograd.com, morsonbeograd.com NOVOLAB Mr Tom Ryan, Regional Director Novolab d.o.o.

Primorska 22, 11000

REGISTER

Belgrade, SERBIA Phone / Fax: +381 11 3293 758 +381 11 3293 534 E-mail: nola@EUnet.yu http://www.novolab.com/ OWEN OWEN Mr James Owen, Managing Director Kosovska 17/III, 11000 Belgrade + 381 11 186307, + 381 11 3222729, owenjv@eunet.rs PARKVETS - NS Dr Srdjan Srdjanov, Director Dimitrija Polit Desancica 14, 21480 Srbobran + 381 21 735496, + 381 21 735496, parkvets@stcable.co.rs www.parkvets.com PHARM-OLAM INTERNATIONAL LTD Mr Pavle Vukojevic, Regional Director of Operations Omladiinskih Brigada 88b (Airport City), 11070 Belgrade, Serbia, +381 11 3538700 (ext 38134), 3538734, +381 11 3538734, info@ pharm-olam.com, www. parm-olam.com POSEIDON GROUP Mr Nemanja Marijan, Director; Mr Predrag Nikolic, Director Bulevar Mihaila Pupina 10-d/I, 11000 Belgrade + 381 11 2140403, + 381 11 2137994 info@poseidon-gp.com, www.poseidon-gp.com PLUTO CAPITAL LTD SERBIA Mr Justin Faiz, Director

50 / UK Business & Investments in Serbia 2010

Zmaja od Nocaja 12, 11000 Belgrade, Serbia, +381 11 2627982, +381 11 2188793, justin@plutodevelopments.com www.plutocapital.com PRICEWATERHOUSE COOPERS DOO Mr Emmanuel Koenig, Country Managing Partner Omladinskih brigada 88a, 11070 Belgrade, Serbia, +381 11 3302 100, +381 11 3302 101, office@yu.pwcglobal.com, www.pwc.com/yu/eng/ main/home/index.html RBTT CONSULTANTS DOO Mr Marko Nikolic, Director Dravska 15,11000 Belgrade +381 11 383 6040, +381 11 383 6041, marko.nikolic@rbttconsultants.com www.rbttconsultants.com REPRESENTATIVE OFFICES & FACILITIES British Embassy Belgrade Commercial Section Resavska 46,11000 Belgrade +381 11 3061 062 +381 11 3061 059, belgrade.com@fco.gov.uk, www.britishembassy.gov. uk/serbia RIO TINTO RIO TINTO INDUSTRIAL MINERALS EXPLORATION Mr Nenad Grubin, Director Bulevar dr Zorana Djindjica 71, 11070 Belgrade +381 11 311 0239, nenad.grubin@riotinto. com, www.riotinto.com

SCOTT WILSON DOO Biljana Vukotic, Deputy Director, Studentski trg 7, 11000 Belgrade, Serbia +381 11 3284042, +381 11 3284043, swblg@verat.net www.scottwilson.com SHELL DOO Ms Dragana Kacar, Director Bulevar Mihaila Pupina 10B/II, 11070 Belgrade +381 11 3114030, +381 11 3114031, s hellbeograd@shell.com, www.shell.com SMITH HODGKINSON TOTAL ASSET SOLUTIONS Mr Vladislav Ilic, Country Manager Bulevar Mihaila Pupina 10d-122, 11070 Belgrade +381 11 3018624, vladislav.ilic@shm.co.rs, www. shm-group.com SONY PROFESSIONAL SOLUTIONS EUROPE Mr Djordje Djukanovic, Business Development Executive Omladinskih Brigada 88a, 11070 Belgrade +381 11 222 59 72 +381 11 222 59 60, Djordje.Djukanovic@ eu.sony.com SVETLOST TEATAR Mrs Olivera Mitrović, General Manager Milovana Saranovica 11, 11000 Belgrade, Serbia Phone / Fax: + 381 11 3977604, 3977930 + 381 11 3978014 office@steatar.rs www.steatar.rs TELIC MrS.Shridhar,Group CEO

Spanskih boraca 24, 11070 Belgrade, Serbia +381 11 3132976 +381 11 3133049 info@telic-corp.com www.telic-serbia.com TLC MARKETING PLC (BELGRADE OFFICE) Mr Milan Miletic, Business Manager South East Europe Knjeginje Zorke 2, 4/5, 11000 Belgrade, Serbia, +381 11 344 8208, +381 11 344 8211 serbia@tlcmarketing.com www.tlcmarketing.com/ serbia UNILEVER DOO Mrs Snezana Vukalovic, Office Manager Omladinskih brigada 88, 11070 Belgrade, Serbia +381 11 2091800 +381 11 2091800 snezana.vukalovic@unilever.com, www.unilever. com VECTOR MANAGEMENT DOO Mr Drago Vukalovic, Business Development Executive Knjeginje Zorke 2, 11000 Belgrade +381 11 308 5107 +381 11 308 51 07, drago. vukalovic@vector-ser. com, www.vecman.com ZENITH OPTIMEDIA Mr Milan Maravic, Managing Partner Rige od Fere 20/7, 11000 Belgrade +381 11 2030608 +381 11 2030703, milan. maravic@zenithoptimedia.co.rs www.zenithoptimedia. co.uk

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