While all eyes are on the European Union, smart businesses in Serbia are capitalizing on Serbia’s Unique Advantage: Free Trade with Russia. It is a massive, unique, and often overlooked advantage: nearly exclusive access to the markets of the Eurasian Economic Union (EAEU).
For international companies looking to expand their reach by starting business in Serbia, Serbia’s strategic position offers a backdoor to a vast economic bloc that remains largely closed to Western competitors. Here’s how your Serbian business can leverage this powerful opportunity, with a help of trusted experts like Start-Serbia.
Political & Cultural Background
Serbia maintains a complex, strategic partnership with Russia, balancing deep historical, cultural, and energy ties with its aspirations for European Union (EU) membership. Despite EU pressure, Serbia has maintained a policy of military neutrality and refused to join sanctions against Moscow. Both nations share Orthodox Christian faith, Slavic roots, and a generally favorable public view of each other, often viewing the West with skepticism. Since the start of the war in Ukraine, over 300,000 Russian citizens have entered Serbia, with about 53,000 obtaining residence permits. Many have opened businesses in the IT sector.
What is the Eurasian Economic Union (EAEU)?
Established in 2014, the EAEU is an international economic union comprising five nations:
- The Russian Federation
- Belarus
- Kazakhstan
- Kyrgyzstan
- Armenia
This bloc represents a combined GDP of USD $5 trillion and a consumer market of nearly 200 million people.
Free Trade with Russia: Serbia’s Unique & Privileged Access
In 2021, a crucial free trade agreement between Serbia and the EAEU took effect. This isn’t just another trade deal—it’s a game-changer. This agreement grants Serbia exclusive market access that is unavailable to other European nations outside the former USSR.
This deal modernized Serbia’s existing bilateral agreements with Russia, Belarus, and Kazakhstan, and extended free-trade privileges to Kyrgyzstan and Armenia for the first time.
The Strategic Advantage for Your Business
So, what does this mean on the ground? The most significant opportunity lies in navigating complex international sanctions, with the help of specialized experts like Start-Serbia.
Consider this scenario: A company based in an EU country faces sanctions that prohibit direct sales to Russia. However, by establishing a subsidiary registered in Serbia, that same company can produce or re-export “Serbian preferential goods” and legally access the Russian market.
Practical Example: An Austrian food producer could export Serbian raspberries to both the EU and EAEU members by operating through its Serbian subsidiary, seamlessly serving both markets without legal barriers.
A Free Trade with Russia in Action
The commercial potential isn’t just theoretical; it’s already being realized.
- In 2022, trade between Serbia and EAEU members reached around €4.3 billion.
- Trade with Russia alone hit USD $2.8 billion in 2022, a 13% increase from 2020.
- Despite global pressures, trade traffic between Serbia and Russia grew by an additional 32% in the first quarter of 2023. Data for 2024 shows that the trade is decreasing, due to trade difficulties caused by the international sanctions, but it is still around €2.2 billion.
The range of goods traded is extensive and diverse, including:
- Fruits and vegetables
- Clothing and footwear
- Mineral resources
- Household chemicals, paints, and coatings
- Smartphones, tires, and technical goods
Essentially, the list of possibilities is almost unlimited for goods that qualify under the Agreement’s preferential terms.
Conclusion: A Clear Path to an Untapped Market
For foreign companies operating in Serbia, the EAEU agreement provides a powerful and rare strategic advantage. You gain access to a massive market of 200 million consumers that is largely inaccessible to competitors from the EU, USA, and other sanctioning countries.
While the benefits apply specifically to “preferential products of Serbia,” resourceful entrepreneurs will find a wealth of opportunity. With a Serbian presence, your business can navigate the global economy and open a new channel for growth and profit.