Annual Report on Serbian-American Relations 2024

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1. Landmark Agreements and the Pupin Initiative’s Impact

The Pupin Initiative emerged as a vital force in strengthening US-Serbia relations throughout 2024 by orchestrating landmark events, promoting strategic relations, and fostering economic cooperation between the US and Serbia. The centerpiece achievement was the official launch of the US-Serbia Strategic Dialogue in January 2025. This dialogue sets a formalized structure for bilateral cooperation between the United States and Serbia in the economy, security, energy, and regional policy. Pupin Initiative’s Proposal for the establishment of a strategic dialogue between Serbia and the United States was presented at the Pupin Forum in Washington, where over 100 policymakers, experts, and US and Serbian officials participated in the first conference dedicated to Serbian-American relations in modern history. On the same day the Pupin Forum happened, the landmark Energy Cooperation Agreement was signed between Serbia and the United States, aligning Serbia’s energy policy with Western standards.

2. Deepening Political and People-to-People Ties

The deepening US-Serbia relations were highlighted by an increased number of high-profile visits by American officials in 2024 and early 2025, reflecting a shift toward long-term strategic cooperation. There were 6 high-level American officials’ visits to Serbia in 2024 and January 2025, including the then-director of the CIA William Burns, then-Deputy Secretary of State Richard Verm, and multiple visits by then-Assistant Secretary of State for European and Eurasian Affairs James C. O’Brien. These visits signaled the beginning of a structured engagement between Serbia and the US, ensuring Serbia's growing importance in Washington’s regional strategy. The shift in US focus toward Serbia also reflects broader geopolitical considerations, including balancing Russian and Chinese influence while supporting Serbia’s EU accession and regional economic integration.

3. Economic Impact and Investment Outlook

Serbia’s economy outperformed expectations in 2024, growing at 3.8% of GDP, supported by FDI inflows, where the US investment represented 11% of the total value. The US became Serbia’s third-largest investor, notably through projects like the $2 billion Morava Corridor (with Bechtel) and clean energy investments, such as the agreement between UGT Renewables, Hyundai Engineering, and the Serbian government to build six solar power plants totaling 1.2 GW. With a $1.8 billion investment, this is Serbia’s largest solar project to date. American firms – including Microsoft, IBM, and Oracle – continued to drive Serbia’s booming ICT sector, which now contributes 10% of GDP and employs over 110,000 people. Serbia’s strategic location, low corporate taxes (15%), skilled labor force, and preferential access to the EU, CEFTA, Chinese, and Russian markets make it an attractive investment destination. Promising sectors for future cooperation include ICT, infrastructure, e-mobility (EV), renewables, and healthcare technologies.

4. Enhanced Defense and Security Cooperation

Defense ties intensified through joint exercises between Serbia’s Special Anti-Terrorist Unit (SAJ) and the US Green Berets, as well as Serbia’s participation in Platinum Wolf 24 and over 100 military-to-military events planned in 2024 with the US. Despite Serbia’s formal moratorium on international military exercises, its cooperation with the US continued under bilateral and multilateral commitments, reinforcing interoperability and Serbia’s contribution to global peacekeeping operations. The Serbia-Ohio State Partnership Program, widely regarded as the most successful among 62 such US programs, has evolved into a model for defense diplomacy, focusing on education, cybersecurity, and disaster response. US officials also encouraged Serbia to adopt NATO-interoperable technologies, enhancing long-term strategic compatibility.

5. Belgrade–Priština Dialogue: Stalled Progress Amid Continued Tensions

The Belgrade–Pristina Dialogue in 2024 remained deadlocked as Kosovo authorities intensified efforts to dismantle Serbian institutions, shutting down dozens of services and enforcing a dinar ban despite international criticism. The move affected over 90,000 employees, pensioners, and social beneficiaries, forcing many to seek alternatives in Serbia. Meanwhile, US-Kosovo defense ties deepened with a $75 million Javelin missile sale, NATO-aligned training programs, and plans for an ammunition factory and drone lab, raising security concerns in Serbia. The dialogue was further obstructed by Kosovo PM Albin Kurti’s refusal to implement the Association of Serb Municipalities (ASM), despite pressure from Serbian officials, the EU, and US lawmakers. Throughout the year, talks remained unproductive, with Serbian President Vučić and Kurti meeting separately with European mediators, and Serbia’s chief negotiator banned from entering Kosovo.

6. Bosnia and Herzegovina: Institutional Fragmentation and Political Tensions with Republika Srpska Leadership

Bosnia and Herzegovina’s EU accession advanced in 2024 as the European Council approved negotiations, largely driven by geopolitical concerns over Russian influence rather than full compliance with EU criteria. While Bosnia made progress in anti-money laundering and judicial cooperation, Serb and Croat nationalist leaders, Milorad Dodik and Dragan Čović, resisted key reforms, maintaining internal divisions. The US supported Bosnia’s EU path but remained skeptical, warning of stagnation without concrete steps to implement the EU’s 14 priorities and unlock the €6 billion Growth Plan. Meanwhile, US-Republic of Srpska (RS) relations deteriorated as RS defied the BiH Constitutional Court, leading to US sanctions on officials and escalating secessionist rhetoric. Washington reaffirmed support for Bosnia’s territorial integrity, condemning RS’s legal obstructions and press restrictions.

7. Policy Influence and Strategic Recommendations

The Pupin Initiative published 12 in-depth policy analyses and 52 weekly briefings, reaching over 3,000 stakeholders in Washington and Belgrade. Its strategic recommendations for US-Serbia relations include:

• Establishing a double taxation treaty and reactivating the US International Development Finance Corporation office in Belgrade.

• Increasing joint military exercises, signing military tech agreements, and strengthening cybersecurity collaboration.

• Enhancing energy diversification and green transition through joint projects.

• Supporting Serbia’s EU integration and expanding academic/cultural exchanges, including a bilateral Fulbright Commission and visa facilitation roadmap.

Through strategic foresight, diplomatic engagement, and impactful policy leadership, the Pupin Initiative has significantly advanced US-Serbia relations in 2024. As the Strategic Dialogue framework takes effect, Serbia is well-positioned to become a central partner for the United States in Southeast Europe – economically, geopolitically, and diplomatically. The Initiative’s efforts have laid the foundation for long-term cooperation built on mutual interests, shared values, and regional stability.

Date:
April 2025