The US Embassy in Bosnia and Herzegovina warned investors in Bosnia and Herzegovina that before investing their money, they should perform a rigorous verification of the ownership rights of the land they are buying, in order not to get involved in illegal or unconstitutional arrangements and to avoid exposure to US sanctions.
"The State Department has published an analysis of the situation for investments in BiH for 2024, where investors are advised to conduct a rigorous legal check before investing in BiH. It is important to avoid exposure to US sanctions and to confirm land ownership rights in order to avoid possible involvement in illegal or unconstitutional arrangements," stated the American Embassy on the social network X.
They pointed out that these tips are "especially important for Republika Srpska, where the situation in this matter is critical".
"This is especially important in the RS, where the secessionist activities of the leaders, efforts to unconstitutionally take control of state property and non-implementation of the High Representative's decisions create legal risks that further complicate the business environment," they pointed out in the announcement.
They added that potential investors should seek legal advice in order to be informed about the impact of the decisions of the Constitutional Court of Bosnia and Herzegovina from July 2024, which ruled in two cases that entities are not competent to dispose of state property in any way, including transfer of ownership, lease , concession or temporary use.
"The court also made it clear that any diversion of state property is a disposition, which is expressly prohibited," the US embassy's announcement reads.
In December of last year, the Government of the RS sold 56 dunums of state land in Jahorina to the company "Drvo-export" from Teslić, owned by the official of the ruling Union of Independent Social Democrats (SNSD) Srđan Ključanin, for 41,3 million convertible marks (about 21,1 million euros).
Recently, the Republic Administration for Geodetic and Property Affairs of RS (RUGIP) registered "Drvo-export" as the owner of that land, although the Constitutional Court of BiH forbade the entity government to dispose of that land and despite the fact that the Law on Temporary Prohibition of State Disposal is still in force property, which was imposed in 2005 by the then high representative in Bosnia and Herzegovina, Paddy Ashdown.
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