Serbia and Ukraine Agree to Fast-Track Free Trade Deal, Boosting Economic Ties
Mariem Bah
During Ukrainian President Volodymyr Zelenskyy's first visit to Belgrade, he and Serbian President Aleksandar Vucic agreed to finalize a long-delayed free trade agreement by the end of this year. Serbia pledged support for Ukraine's EU bid and postwar reconstruction, while maintaining its refusal to sanction Russia.
Serbia and Ukraine have agreed to strengthen economic cooperation, with both sides committing to finalize a long-delayed free trade agreement by the end of this year. The announcement came on the final day of Ukrainian President Volodymyr Zelenskyy's two-day visit to Belgrade, which concluded on Saturday (August 8). This was Zelenskyy's first visit to Serbia since taking office in 2019.
Speaking at a joint press conference, Serbian President Aleksandar Vucic said Serbia would support Ukraine's accession to the European Union (EU) and maintain its stance in favor of Ukraine's territorial integrity, including areas under Russian control since 2014. However, Belgrade continues to refuse to impose sanctions on Russia, a longtime ally of Serbia.
For its part, Ukraine does not recognize Kosovo's 2008 declaration of independence. Serbia considers Kosovo part of its territory.
“You have never heard a bad word about our country, whether from Volodymyr Zelenskyy or anyone else in Ukraine, and I am deeply grateful to our Ukrainian friends for that,” Vucic said. “Our cooperation is expanding and will grow even larger.” He added that Serbia would help rebuild Ukrainian cities devastated by Russia's invasion.
Long-Delayed Free Trade Agreement
The proposed free trade agreement has been under discussion for more than two decades, and both countries now aim to complete it by the end of this year. The deal is seen as crucial for Serbia's accession to the World Trade Organization (WTO) and as a prerequisite for EU membership. Ukraine has blocked the agreement since 2005 due to quota and tariff issues affecting its agricultural sector.
Both leaders emphasized that progress on the agreement signals strengthening economic ties, alongside Serbia's commitment to humanitarian aid, infrastructure support, and energy assistance for Ukraine ahead of the upcoming winter. Zelenskyy said the two sides discussed joint infrastructure projects as well as cooperation on energy and food security before winter, noting that “almost no thermal power plant is intact” in Ukraine due to Russian attacks.
Zelenskyy said Russian attacks have also destroyed railway stations, hospitals, universities, and civilian businesses, and thanked Serbia for preparing a new humanitarian aid package, with a special focus on health and energy. “We are developing every form of cooperation that can give our people… greater resilience,” Zelenskyy said.
In a post on X on Saturday, Zelenskyy said he also discussed economic and logistics projects with Serbian Prime Minister Duro Macut, including the Danube Corridor and enhancing connectivity between Ukraine, the Western Balkans, and the EU. Zelenskyy thanked Serbia for committing €2 million ($2.3 million) to support Ukraine's energy sector.
The two countries also signed a memorandum of understanding on animal health and food safety, according to the Kyiv Post. The agreement was signed by Serbian Agriculture Minister Dragan Glamocic and Ukraine's Ambassador to Serbia Oleksandr Lytvynenko.
Serbia Balances EU Ambitions and Relations with Russia
Vucic expressed doubt that Serbia or Ukraine would achieve EU membership soon. “I wish Ukraine every success, but this is not just a merit-based process,” he said, noting that the bloc has not admitted a new member since Croatia joined in 2013.
He also warned that he does not expect the war in Ukraine to end soon. “I am very concerned that we will have a very difficult winter – especially for Ukrainians,” Vucic said, according to the Kyiv Post.
Belgrade condemned Russia's full-scale invasion of Ukraine in 2022 and supports Ukraine's territorial integrity, but has resisted joining Western sanctions against Moscow. Serbia also remains dependent on Russia for most of its gas supplies.
At the same time, Serbia has sought to reduce its military dependence on Russia, including through a deal to replace its aging Soviet-era MiG-29 fighter jets with French Rafale aircraft. The Kremlin has repeatedly alleged that Serbia sells ammunition indirectly to Ukraine through intermediaries. Belgrade denies selling ammunition to Ukraine but says it sells ammunition to buyers worldwide.
Vucic and Zelenskyy said military cooperation was not discussed during the visit.
