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Serbia’s lithium mining controversy: Struggling with Russian relations, western investments and widespread protests

The ongoing lithium mining controversy in Serbia is straining the country’s delicate balance between its historical ties with Russia and its cooperation with Western nations. Serbia, Russia’s key ally in the Balkans, is navigating the challenge of maintaining its relationship with Moscow while pursuing economic growth through partnerships with Western countries.

The discovery of lithium reserves in Loznica by British-Australian mining giant Rio Tinto in 2004 has sparked years of protests. Environmental activists, supported by opposition groups, have held large-scale demonstrations opposing the project, while the Serbian government views the lithium mine as a significant economic opportunity.

Recently, Serbian President Aleksandar Vučić and German Chancellor Olaf Scholz signed a strategic memorandum of understanding on raw materials, electric vehicles, and battery production. Vučić emphasized the agreement’s importance for Serbia’s economic future, projecting it to attract at least €6 billion in new investments. Scholz highlighted the commitment to environmental protection and biodiversity standards, framing the agreement as a crucial step for both Serbia and Europe.

Despite the potential economic benefits, no excavation is currently underway. Vučić has stated that operations will not commence until guarantees are secured, with a timeline of 12 to 18 months.

Tensions have escalated further with Vučić’s claim that Russian intelligence warned of a potential coup attempt backed by Western powers. This has added a layer of political complexity to the situation, as the EU is seen as aiming to reduce Serbia’s reliance on Chinese investments by tapping into its resources.

Protests against the lithium mining project continue, with over 20,000 people recently blocking train stations and roads. The Serbian Interior Ministry has announced plans to file criminal complaints against protesters for disrupting public order. Demonstrations are expected to persist, with Vučić scheduled to address the nation to discuss the ongoing unrest.

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