Bosnian Serb Farmers Await Grants to Buy Hungarian Machinery

Some 768 farmers from Bosnia's Serb-dominated entity, Republika Srpska, who have been awarded grants ranging from 4,000 to 25,000 euros, have until April 29 to sign contracts for the funds.

The funds are part of Hungary's Responsible Neighbourhood policy, offered by Hungary's Prime Minister, Viktor Orban, during his visit to Banja Luka in December 2021, when he promised 100 million euros in financial support for Republika Srpska. 

"Funds for the procurement of agricultural machinery, equipment, and tools have been approved for 95.40 per cent of those who applied," the Foundation for Sustainable Development "Progressus", a non-profit in charge of coordinating the grants, said. 

According to Progressus, close to 11.2 million euros will be awarded in the first round, while farmers will get close to 5.2 million euros. 

The first round was announced on July 1 2022, when Hungarian Foreign and Trade Minister Péter Szijjártó met the RS president, Milorad Dodik, announcing the allocation of an initial 35 million euros. 

"Thirty-five million euros will be allocated to fund small and medium-sized companies in the country," Szijjártó said after the meeting.

"They [companies] can receive a maximum of 25,000 euros for the development of or purchase of certain equipment produced in Hungary, and in this way we'll help [Republika] Srpska's economy develop within Bosnia and Herzegovina, and our Hungarian companies," he said.

Hungary is a close ally of Republika Srpska, and Dodik thanked Orban for its help.

Orban opposed EU sanctions on Dodik when Germany proposed them in December last year, citing Dodik's secessionist actions. Orban then described Serbia and Bosnia's Serb-dominated entity as "key to the stability of the...