Bringing pharmaceutical production into compliance with European requirements demands significant investments from Ukrainian pharmaceutical manufacturers, which could lead to higher production costs, according to Anatoliy Reder, CEO of the pharmaceutical company “Interchem.”
“We are operating within the paradigm that our country is currently moving toward—alignment with European requirements. We must understand that compliance with European standards, EU directives, and the principles and approaches currently in effect in Europe will require significant additional investments from us—in production, regulatory processes, research, and so on. In other words, this involves enormous additional costs in order to meet, within a relatively short period of time, the requirements that are currently the norm in the European Union. With a gradual transition to these requirements, it must be acknowledged that production costs will rise significantly,” he said in an interview with the “Interfax-Ukraine” news agency.
As Reder noted, compliance with European standards—particularly those incorporated into Ukraine’s law on medicinal products—will automatically require additional investments, which will inevitably lead to price increases.
“We need to speak openly about this. You can’t make pills out of thin air. If additional controls are needed, additional costs will be incurred. Today, we monitor every batch of manufactured products throughout their entire shelf life—something that wasn’t required before—and this involves hundreds and thousands of manufactured batches and, consequently, enormous costs. The additional control points in production required of us by European Union legislation—this means additional equipment, additional laboratory staff, and additional production processes—represent objectively large-scale investments. These costs will inevitably lead to price increases,” he stated.
According to the “Serbian Economist,” Serbia’s economic ties with the European Union are now significantly more extensive than its trade with Russia, while Belgrade’s main dependence on Moscow remains primarily in the energy sector, said Andon Sapundži, Serbia’s ambassador to Ukraine.
According to him, about 70% of Serbia’s exports and imports go to European Union countries, with another approximately 15% going to countries in the region that are candidates or seeking to join the EU, including Bosnia and Herzegovina, Montenegro, North Macedonia, and Albania.
“The remaining countries account for the rest of Serbia’s foreign trade, including the United States, China, and Russia. Russia’s share is approximately 7–8%, and a significant portion of this trade consists of energy resources, primarily natural gas,” Sapundži said in an interview with “Apostrophe.”
According to him, dependence on Russian energy resources remains one of the most sensitive aspects of Serbian-Russian economic relations, which is why Belgrade is working to diversify its sources and supply routes.
Separately, the ambassador commented on the situation surrounding Serbia’s largest oil and gas company, NIS, which has come under U.S. sanctions due to Russian ownership stakes.
According to him, the process of changing NIS’s ownership structure is in full swing. Serbia is discussing the company’s future structure with Hungary’s MOL, while negotiations with Russia’s Gazprom Neft are ongoing. To finalize the deal, appropriate approvals under the U.S. sanctions regime are required, among other things.
Sapundži identified Serbia’s two main priorities as maintaining energy security and finding a long-term, sustainable ownership structure for NIS.
The company is of strategic importance to the country’s economy, as it operates Serbia’s only oil refinery in Pančevo.
At the same time, the diplomat emphasized that a change in trade structure does not mean Serbia is completely abandoning its economic relations with Russia.
Belgrade, meanwhile, continues to pursue EU accession. According to Sapundži, European integration remains a strategic priority for the country, although Serbia’s refusal to join sanctions against Russia is creating difficulties in negotiations with Brussels.
According to The Serbian Economist, Serbian truckers, together with their colleagues from Montenegro, Bosnia and Herzegovina, and North Macedonia have announced their intention to begin blocking freight border crossings into the European Union starting September 14, 2026, if a solution to the issue of professional drivers’ stay in the Schengen Area has not been found by that time.
This was reported by the Serbian association of international carriers, “Međunarodni transport.” According to the association, drivers from the Western Balkan countries continue to be detained, deported, and turned back at the borders for exceeding the permitted length of stay in the Schengen Area. The association claims that several dozen Serbian drivers are turned back at the borders every day, and there have been more than 50 such cases in the past week alone.
Before the blockade begins, the carriers intend to make one more attempt to reach an agreement with European authorities. On August 31, from 12:00 p.m. to 2:00 p.m., a peaceful protest will take place in Belgrade in front of the EU delegation at 40/V Vladimira Popovića Street. Similar protests are planned in front of the EU delegations in Montenegro, Bosnia and Herzegovina, and North Macedonia.
In addition, another meeting between representatives of the transport companies and the European Commission is scheduled for September 1. If it does not lead to a concrete decision, starting September 14, transport companies from the four countries intend to begin protests at border crossings.
The cause of the conflict is the 90/180 rule in effect in the Schengen Area, under which a third-country national may stay in the Schengen Area for no more than 90 days within any 180-day period. This is sufficient for the average tourist, but international carriers argue that professional drivers are physically unable to make regular trips to the EU under such a restriction.
The rule itself existed previously, but with the introduction of the Electronic Entry/Exit System (EES), enforcement has become significantly stricter. The system automatically records the entries and exits of third-country nationals and, as of April 10, 2026, is fully operational at the external borders of the Schengen Area, with the exception of Ireland and Cyprus. The possibility of “losing” some days between passport stamps has effectively disappeared.
At the same time, the European Commission officially acknowledges the existence of the problem. The EU Visa Policy Strategy, adopted on January 29, 2026, states that a number of mobile professions, particularly truck drivers serving European businesses, may need to stay in several Schengen countries for more than 90 days within a 180-day period.
The European Commission has stated that it will seek a solution, including the possibility of introducing special EU-wide rules regarding extended short-term stays. However, a specific mechanism has not yet been approved.
For Serbia, this issue is particularly acute due to the significant dependence of its exports on road transport to the EU. Carriers warn that some drivers are already refusing to make trips to EU countries.
This will be the second major regional protest by carriers in 2026. Starting on January 26, drivers from Serbia, Montenegro, Bosnia and Herzegovina, and North Macedonia simultaneously blocked freight terminals at the borders with the EU. In Serbia, the protest lasted five days and was called off on January 30 after the European Commission included the issue of professional drivers in its new visa strategy.
The economic impact of the previous blockade was significant. According to estimates by the Serbian Chamber of Commerce and Industry, the restrictions affected about 93% of exports from the four Western Balkan countries, and potential business losses were estimated at up to 92 million euros per day.
For Ukraine, a potential blockade is also significant, although its impact will be considerably less than for Serbia and other Western Balkan countries. The main truck traffic between Ukraine and the EU passes directly through Poland, Slovakia, Hungary, and Romania, so a blockade of the Serbian borders will not halt Ukrainian-European trade.
However, the issue could directly affect Ukrainian trucks traveling to Serbia, Bosnia and Herzegovina, Montenegro, North Macedonia, Albania, and Greece, as well as carriers that use Serbia as a transit country. If the protest follows the January scenario and the Batrovci freight terminal on the border with Croatia, the Horgos terminal on the border with Hungary, the border crossings with Romania, and the Gradina terminal on the border with Bulgaria are blocked, Ukrainian carriers will find themselves in the same lines as other international trucks.
The most vulnerable routes may be those from Ukraine through Hungary or Romania to Serbia and onward to Montenegro, Bosnia, and North Macedonia, as well as transit toward the Adriatic and the southern Balkans. Rerouting cargo through Romania and Bulgaria or other border crossings is not always possible and entails additional mileage, fuel costs, and longer delivery times.
This is a particularly sensitive issue for Ukrainian logistics due to the economy’s heavy reliance on land transport corridors. According to the European Commission, in July 2026, the “Solidarity Lanes”—established after the start of the full-scale war—accounted for approximately 90% of Ukraine’s imports and 95% of its non-agricultural exports, although only a portion of these shipments is related to the Balkan route. Therefore, a strike in the Western Balkans alone is not capable of paralyzing Ukrainian foreign trade, but for companies that work specifically with the Balkans, it could significantly increase logistics costs.
A separate issue concerns Ukrainian professional drivers themselves. Ukraine has a special agreement with the EU on road transport, which has been extended until March 31, 2027. It liberalizes bilateral and transit freight transport and allows Ukrainian carriers to operate within the EU without some of the former licensing restrictions.
However, this agreement primarily regulates carriers’ access to the market, not the length of stay of a specific driver in the Schengen Area. Therefore, a Ukrainian driver entering the Schengen Area as a third-country national on a short-term stay and who does not hold a long-term visa, residence permit, or other relevant status must generally also comply with the 90-day limit within a 180-day period. The European Commission notes that holders of long-term visas and residence permits are not subject to this restriction.
https://t.me/relocationrs/3545
The EU economy today faces challenges such as rising energy prices, fragmentation of the single market, complex administrative rules, and competition that is not always fair, said European Commission (EC) President Ursula von der Leyen.
“For a long time, the European economic model was based on several self-evident truths: cheap imported energy, open global trade, ever-wider access to the Chinese market, strategic protection from the U.S., and the West’s technological edge. These truths have disappeared,” the EC President stated while delivering a speech on Thursday in Paris at the annual “2026 Meeting of French Entrepreneurs” conference.
Von der Leyen sees the solution to these pressing problems as restoring entrepreneurs’ freedom to invest in the short term and, in the long term, making innovation, productivity, and scaling up the sustainable drivers of European economic growth.
The European Commission President outlined her prescriptions for healing the European economy.
The first priority is to simplify regulations and restore a level playing field. The goal is to reduce the administrative burden by 25% for all businesses and by 35% for small and medium-sized enterprises by 2029.
“However,” von der Leyen continued, “the demand for simplicity must be combined with the demand for fairness regarding foreign competition. This is particularly relevant to our relations with China. China is our major economic partner, and our position is clear and unwavering: to reduce risks, but not to sever ties. However, being a partner does not mean putting up with constant imbalances.”
She identified the financing of EU member states’ economies as the second priority. In her view, far too many projects remain stalled because the initial investment step is too risky, demand is too uncertain, or capital is too expensive. Of course, the EC President noted, these efforts cannot be financed solely through national budgets.
“But Europe has savings. Unfortunately, these savings are ‘idle.’ 10 trillion euros in household savings continue to sit in bank deposits, and a significant portion of European savings is invested outside our continent. Europe must now channel these funds to support its own businesses,” von der Leyen said.
Among other measures to strengthen the EU economy, she highlighted the comprehensive development and consolidation of the EU single market, reducing energy costs, the adoption of artificial intelligence as a “powerful driver of productivity,” and expanding free trade with international partners.
According to Experts.news, the United Kingdom could come close to the entire European Union market in terms of Ukrainian chicken meat purchases by 2027, while the importance of Middle Eastern countries for Ukrainian exporters will decline, according to a forecast by the Kyiv office of the U.S. Department of Agriculture (USDA FAS).
In the “Poultry and Products Annual” report, published on August 19, 2026, the United Kingdom is identified as one of the key drivers of growth in Ukrainian chicken meat production and exports in 2026–2027.
On January 16, 2026, Ukraine and the United Kingdom agreed to extend the duty-free trade regime for chicken meat and a number of other agricultural products until March 31, 2028. The United Kingdom will not impose a tariff quota on Ukrainian chicken until that date.
According to USDA estimates, this effectively provides Ukrainian producers with nearly two additional years of unrestricted access to one of the world’s most price-competitive markets. In some months, retail prices for Ukrainian chicken in the United Kingdom have even been higher than in the EU.
As a result, FAS/Kyiv expects a further sharp increase in shipments to the United Kingdom. By 2027, their volume could become comparable to Ukraine’s total chicken exports to the EU.
At the same time, the European Union remains the industry’s largest premium market; however, shipments are limited by a new permanent duty-free quota of 120,000 metric tons per year.
The new quota was agreed upon by Ukraine and the EU in October 2025. It replaced the pre-war permanent quota of 90,000 metric tons and the temporary regime of autonomous trade measures, which allowed for significantly larger volumes to be exported. The USDA expects that in 2026–2027, actual exports to the EU will remain at the established limit of 120,000 metric tons.
The expansion of shipments to the UK and the EU is already changing the geography of Ukrainian exports.
The shift is particularly noticeable in the Middle East. The USDA reports that in 2026, Ukrainian chicken exports to Saudi Arabia—which had previously been Ukraine’s largest single export market for this product—ceased entirely.
This occurred despite MHP’s long-standing relationship with Saudi Arabia and the Saudi Agricultural and Livestock Investment Company (SALIC), which owns 13% of MHP. At the same time, the USDA anticipates that Ukrainian products may return to the Saudi market in the coming years.
Exports to Iraq, on the other hand, continue. The USDA specifically notes that Ukraine was not included in Iraq’s ban on chicken imports from 39 major supplier countries due to risks associated with highly pathogenic avian influenza.
Ukrainian producers also maintain a presence in the markets of Africa and the former Soviet Union countries; however, the most profitable European markets are gradually drawing a portion of the production toward them.
Exports via Turkey are primarily of a transit nature: according to USDA industry sources, most of the Ukrainian poultry arriving there is subsequently re-exported to Asia or Africa. At the same time, the free trade agreement between Ukraine and Turkey, which will take effect in 2026, provides for a separate duty-free quota of 2,000 metric tons for raw and processed poultry products.
Overall, according to the latest estimate by FAS/Kyiv, chicken meat exports from Ukraine will increase from about 450,000 metric tons in 2025 to 490,000 metric tons in 2026 and 530,000 metric tons in 2027.
Thus, one of the key changes over the next two years will be the further reorientation of the Ukrainian poultry industry toward the United Kingdom and the EU, at the expense of some of its traditional markets in the Middle East and Asia.
Source: USDA Foreign Agricultural Service, Ukraine: Poultry and Products Annual, UP2026-0022, August 19, 2026.
According to the Serbian business publication Parametar, trucking companies in Serbia, Bosnia and Herzegovina, Montenegro, and North Macedonia are demanding that the European Union propose a concrete solution by September 1, 2026, to the problem of restrictions on professional drivers’ stays in the Schengen Area. Otherwise, the carriers are prepared to stage coordinated protests again and block freight terminals at the borders with the EU.
The decision was agreed upon by representatives of transport associations from the four countries at a regional meeting in Skopje. However, September 1 is not automatically the start date for the blockade. The carriers intend to wait for negotiations with the European Commission and discussions on the EU’s new visa strategy, after which they will decide on further actions.
The carriers’ main complaint concerns the 90/180 rule. Third-country nationals who benefit from the visa-free regime may stay in the Schengen Area for no more than 90 days within any 180-day period. This restriction also applies to professional drivers from the Western Balkans.
Carriers consider this approach unfair, since drivers do not enter the EU as tourists but regularly cross the border while delivering international cargo and return to their home countries after their trips.
“Our drivers leave every two, three, or five days, depending on the route, and then return. They don’t want to leave their home countries; they want to work for our companies. But 90 days isn’t enough for professional work,” said Nejo Mandić, president of the Serbian Association of International Carriers.
According to estimates by regional transport organizations, the problem affects about 100,000 professional drivers in four countries. Stricter enforcement of the limit has become particularly noticeable following the introduction of the European Entry/Exit System (EES), which automatically records the entry and exit of third-country nationals.
There is already a precedent for this threat to carriers. In late January 2026, drivers from Serbia, Bosnia and Herzegovina, Montenegro, and North Macedonia simultaneously blocked more than 20 freight crossings into the Schengen Area. The borders between Serbia and Bosnia and Herzegovina with Croatia, between North Macedonia and Greece and Bulgaria, as well as the port of Bar in Montenegro, were blocked.
The economic impact was significant. Marko Čadež, president of the Serbian Chamber of Commerce and Industry, estimated at the time that the blockade affected about 93% of the four countries’ exports, with total losses amounting to approximately 92 million euros per day.
According to his assessment, individual companies faced fines and losses of 10,000–50,000 euros per day per company due to their inability to fulfill contractual obligations. Moreover, the problems were not limited to Balkan manufacturers—European companies with factories, suppliers, and customers in the region also suffered from the delays.
If a new regional blockade were to occur on a similar scale, economic losses could again amount to tens of millions of euros daily.
For Serbia, the most vulnerable sector is the industry oriented toward European supply chains. Automotive components, electrical equipment, rubber products, metal products, food, and other goods are often transported by truck on a scheduled basis and must reach the customer at a strictly defined time.
Even a brief halt in traffic leads to a buildup of cargo in warehouses, disruptions to production cycles, and the risk of penalties from European buyers.
A prolonged blockade is particularly dangerous for manufacturers of perishable goods. During the January protests, carriers reported that Lidl alone had planned to deliver approximately 120 truckloads of meat, dairy products, fruits, and vegetables from Europe to Serbia within a single week. The traffic blockade directly threatened these deliveries.
The transport companies themselves are suffering double losses: while a truck is idle, it continues to incur costs for leasing, driver salaries, insurance, and other payments, but generates no revenue. Industry associations also warn that the inability to fully utilize drivers on EU routes could lead to the loss of contracts to carriers from EU countries.
The economic damage will not be limited to the Western Balkans. A significant portion of businesses in Serbia, North Macedonia, and Bosnia and Herzegovina are directly integrated into the production chains of EU companies.
Delays in the supply of components could affect factories in Germany, Italy, Austria, Slovenia, Hungary, and other countries. The reverse flow of European goods to the Balkans is also coming to a halt.
In addition, an important land transport corridor connecting Central Europe, Turkey, and onward to the Middle East runs through Serbia and North Macedonia. During the January protests, Reuters noted that the blockade was disrupting traffic along precisely this strategic route.
Following the January protests, the European Commission acknowledged that the established regime creates problems for highly mobile professions, particularly international drivers, artists, and athletes. The EU’s new visa strategy, adopted in January, provides for the possibility of finding a more flexible mechanism for these categories of workers.
However, an automatic exemption for professional drivers from the 90/180 rule has not yet been implemented.
Carriers are insisting on either special status for international drivers or a system of professional visas or other permits that would allow them to stay in the Schengen Area for more than 90 days without the risk of detention, deportation, or a travel ban.
Thus, September 1 becomes a key date for the Western Balkans’ transport market. If Brussels proposes a workable mechanism for professional drivers, a new blockade can be avoided. If an agreement cannot be reached, carriers from the four countries have already agreed on the possibility of joint action.
The issue of restrictions on professional drivers’ stays in the Schengen Area also affects Ukraine.
Ukrainian long-haul truck drivers employed by carriers registered in Ukraine, when entering the Schengen Area under the visa-free regime, are also generally subject to the 90-day rule within an 180-day period, unless they hold a separate long-term status or a residence permit. In its visa strategy dated January 29, 2026, the European Commission explicitly acknowledged that the current system creates problems for mobile professions, specifically mentioning truck drivers who serve EU businesses.
At the same time, the EU-Ukraine Road Transport Agreement, in effect until March 31, 2027, simplifies access for Ukrainian carriers to the EU market and eliminates the need for a number of permits for bilateral and transit transport, but does not in itself constitute an exception to Schengen migration rules.
Therefore, Ukraine has a genuine interest in the very same solution demanded by carriers in the Western Balkans: to distinguish between a professional driver’s working hours on an international route and a regular tourist stay, or to establish a special regime for such drivers.
