Members of the Italian Armed Forces, part of the NATO peacekeeping mission in Kosovo, stand near a roadblock in Rudare, near the northern part of the ethnically-divided town of Mitrovica, Kosovo December 29, 2022. REUTERS / Florion Goga
Members of the Italian Armed Forces, part of the NATO peacekeeping mission in Kosovo, stand near a roadblock in Rudare, near the northern part of the ethnically-divided town of Mitrovica, Kosovo December 29, 2022. REUTERS / Florion Goga
Members of the Italian Armed Forces, part of the NATO peacekeeping mission in Kosovo, stand near a roadblock in Rudare, near the northern part of the ethnically-divided town of Mitrovica, Kosovo December 29, 2022. REUTERS / Florion Goga
Members of the Italian Armed Forces, part of the NATO peacekeeping mission in Kosovo, stand near a roadblock in Rudare, near the northern part of the ethnically-divided town of Mitrovica, Kosovo Decem

Serbia and Kosovo: Why are tensions running high in the Balkans?


Tim Stickings
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Serbian barricades near the border with Kosovo will be dismantled in the coming days, Serbia's President Aleksandar Vucic said, after an alarming increase in tension in the Balkans.

A UN envoy welcomed signs of de-escalation as Kosovo said a key border crossing had been re-opened.

World powers appealed for calm during weeks of unrest, in which the two sides accused each other of stirring up ethnic tensions left unresolved by the Yugoslav wars.

Mr Vucic said the roadblocks set up as a protest by the Serb minority in Kosovo would "be removed, but the mistrust remains".

"It is a long process and it will take a while," he said after meeting a group of ethnic Serbs.

Tension between Serbia and Kosovo - in pictures

  • A roadblock in Rudare, near the northern part of the ethnically divided town of Mitrovica, Kosovo. Reuters
    A roadblock in Rudare, near the northern part of the ethnically divided town of Mitrovica, Kosovo. Reuters
  • Italian members of the Nato peacekeeping mission in Kosovo near a roadblock in Rudare. Reuters
    Italian members of the Nato peacekeeping mission in Kosovo near a roadblock in Rudare. Reuters
  • Russian and Serbian national flags on a balcony in the divided town of Mitrovica. AFP
    Russian and Serbian national flags on a balcony in the divided town of Mitrovica. AFP
  • A blocked road in Mitrovica. AFP
    A blocked road in Mitrovica. AFP
  • Kosovo police officers advise travellers at the closed Merdare border crossing between Kosovo and Serbia. AP
    Kosovo police officers advise travellers at the closed Merdare border crossing between Kosovo and Serbia. AP
  • A Nato helicopter near Rudare. Reuters
    A Nato helicopter near Rudare. Reuters
  • Members of the Italian Armed Forces on guard in Rudare. Reuters
    Members of the Italian Armed Forces on guard in Rudare. Reuters

The UN special representative, Caroline Ziadeh, said she welcomed all efforts to defuse tensions, including the removal of barricades.

She urged Serbia and Kosovo to return to dialogue to "address outstanding issues and normalise relations without delay", her office said.

The EU's top diplomat Josep Borrell struck an optimistic tone on Thursday, saying that "diplomacy prevailed".

"We now need urgent progress in the dialogue," he said.

Serbia had readied troops and said it would take "all measures" to protect Serbs, while Kosovo said it would defend itself “forcefully and decisively” if provoked.

The US and its European allies stepped in this week to urge dialogue, while Russia’s moves are being closely watched as it sides with its ally Serbia.

Why are Serbia and Kosovo at odds?

Kosovo declared independence from Serbia in 2008, but its statehood is not recognised by Serbia.

Before then, it was a southern province where conflict broke out in 1998 during the Yugoslav wars.

Serbian-led troops withdrew in 1999 after a 78-day Nato bombing campaign intended to protect Kosovo’s Albanian majority from ethnic cleansing, but which still rankles in Serbia.

Today, many ethnic Serbs live in Kosovo, and the government in Serbia often speaks out in the name of “its people” there.

The region has a symbolic importance for Serb identity as the location of the 1389 Battle of Kosovo, a defiant struggle against Ottoman invaders.

Nato intervened in Yugoslavia in 1999 to prevent ethnic cleansing in Kosovo. AP
Nato intervened in Yugoslavia in 1999 to prevent ethnic cleansing in Kosovo. AP

Why have tensions risen in recent weeks?

A dispute about vehicle licence plates, of all things, helped to trigger the latest unrest.

A Kosovan move to purge Serbian-issued plates prompted many Serbs to walk out of Kosovo’s police force and other institutions in protest.

Tensions rose further when one such police officer, Dejan Pantic, was arrested for an alleged assault on December 10.

Serbs blocked roads near the border in what Kosovo called an illegal blockade but Serbia defended as a peaceful protest.

Kosovo denied a Serbian claim that it planned to round up ethnic Serbs involved in the unrest.

A series of murky shooting incidents, including one near a Nato peacekeeping patrol, did nothing to ease concerns.

Serbian Prime Minister Ana Brnabic said on December 21 that the region was “on the brink of armed conflicts”.

Protesters carry a giant Serbian flag during a barricade protest in Kosovo. AP
Protesters carry a giant Serbian flag during a barricade protest in Kosovo. AP

Could the conflict escalate?

There have been signs of a calmer atmosphere in recent days, with Mr Pantic released in Kosovo, and Serbia saying on Thursday that barricades would be removed.

Mr Borrell said the two countries had shown responsible leadership to defuse tension.

Nonetheless, Serbia said as recently as this week that its military was at the highest level of combat readiness.

Serbia's Mr Vucic asked Nato peacekeepers to let 1,000 of his troops into Kosovo, while accepting they were unlikely to allow it.

Kosovo Prime Minister Albin Kurti accused Belgrade of threatening military aggression.

What do the US and European allies say?

The US, Britain and most but not all EU member states recognise Kosovo’s independence.

Both Serbia and Kosovo aspire to EU membership and the bloc has urged them to stop “fighting in the street”.

A joint statement by the US and EU on December 28 expressed concern about the “continued tense situation”.

Germany accused Serbia of nationalist rhetoric and said it was inflaming tension by stationing troops near the border.

The Serb protesters were accused of throwing stun grenades at members of an EU civilian mission, angering Brussels.

However, Kosovo has not been spared criticism. Prime Minister Kurti has been urged to follow through on a proposed form of self-government for ethnic Serbs.

The EU, which brokered a tentative deal on the licence-plate issue, also said Kosovo had acted impatiently on that front.

Serbian President Aleksandar Vucic has promised to protect ethnic Serbs in Kosovo. EPA
Serbian President Aleksandar Vucic has promised to protect ethnic Serbs in Kosovo. EPA

How is Russia involved?

Moscow sides with Serbia in rejecting Kosovo’s statehood and has come out in support of Belgrade during the latest flare-up.

“Serbia is defending the rights of Serbs who live near by in difficult conditions,” said Kremlin spokesman Dmitry Peskov.

Many have drawn parallels between Kosovo and eastern Ukraine, where Moscow similarly claims to be an advocate for persecuted Russian speakers.

Serbia has declined to impose sanctions on Russia over the war in Ukraine, while insisting it is not in Moscow’s pocket.

There are fears in Brussels that Russia will try to exploit divisions in the EU’s back yard.

But Mr Peskov said it was “fundamentally wrong to look for some kind of destructive influence of Russia here”.

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Women's squad: Hamda Al Shekheili, Shouq Al Dhanhani, Balqis Abdullah, Sharifa Al Namani, Asma Al Hosani, Maitha Sultan, Bashayer Al Matrooshi, Maha Al Hanaei, Shamma Al Kalbani, Haya Al Jahuri, Mahra Mahfouz, Marwa Al Hosani, Tasneem Al Jahoori and Maryam Al Amri

What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

Long read

Mageed Yahia, director of WFP in UAE: Coronavirus knows no borders, and neither should the response

Paatal Lok season two

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Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Muslim Council of Elders condemns terrorism on religious sites

The Muslim Council of Elders has strongly condemned the criminal attacks on religious sites in Britain.

It firmly rejected “acts of terrorism, which constitute a flagrant violation of the sanctity of houses of worship”.

“Attacking places of worship is a form of terrorism and extremism that threatens peace and stability within societies,” it said.

The council also warned against the rise of hate speech, racism, extremism and Islamophobia. It urged the international community to join efforts to promote tolerance and peaceful coexistence.

How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
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Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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Biog

Mr Kandhari is legally authorised to conduct marriages in the gurdwara

He has officiated weddings of Sikhs and people of different faiths from Malaysia, Sri Lanka, Russia, the US and Canada

Father of two sons, grandfather of six

Plays golf once a week

Enjoys trying new holiday destinations with his wife and family

Walks for an hour every morning

Completed a Bachelor of Commerce degree in Loyola College, Chennai, India

2019 is a milestone because he completes 50 years in business

 

The specs

Engine: 8.0-litre, quad-turbo 16-cylinder

Transmission: 7-speed auto

0-100kmh 2.3 seconds

0-200kmh 5.5 seconds

0-300kmh 11.6 seconds

Power: 1500hp

Torque: 1600Nm

Price: Dh13,400,000

On sale: now

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Updated: December 29, 2022, 2:32 PM