Patriotic theft - part 2 (VIDEO)

Hidden camera on the Novi Pazar – Banjska – Zvečan road

 B92: What road are we on now?
Guide: On the road to Zvečan. This is an alternative road used by people from northern Kosovo.
B92: For what?
Guide: For goods, for transporting goods.
B92: And what goods pass through here?
Guide: It’s used for oil and food, basically for everything, for all kinds of trade, whatever is needed.
B92: How far from here is the police? Is there a police checkpoint?
Guide: Yes, there is. We’ll reach it soon; there’s a police checkpoint up ahead.
B92: What do they do?
Guide: Nothing much, they just check IDs and that sort of thing.
B92: Is this the checkpoint?
Guide: Here it is, yes.
B92: Do we need to show our IDs?
Guide: Well, if they ask for it, it’s good to have them ready.
Driver: Good afternoon.
Police officer: Good afternoon. Where are you headed?
Driver: We’re going to Mitrovica.
Police officer: Where are you from?
Driver: From Belgrade.
Police officer: Documents.
Driver: Here you go.
Police officer: Do you have anything in the back?

Driver: There’s nothing. Do you want to check?
Police Officer: Go ahead.

B92: So, he just took his documents, the driver’s documents...
Guide: Yes, he writes something down...
B92: And what does he write down?
Guide: He notes that the vehicle passed, the vehicle’s license plate number, the driver’s name, and that’s it.
B92: And that’s the entire check?
Guide: That’s it.
B92: So, anyone could pass through here with anything... Are we in Kosovo now?
Guide: Yes, we’re in Kosovo.
B92: That’s it?
Guide: That’s it.
B92: And when will we encounter EULEX?
Guide: We might not encounter them at all, but I think we will.
B92: Because these alternative routes are supposed to be covered by KFOR. That’s the agreement.
Guide: Yes, there’s KFOR, and there’s EULEX. Here they are. There’s KFOR.
B92: Do we need to stop here?
Guide: No, no, just drive unless they stop you.
B92: He just waved at us. That’s it?
Guide: That’s it.
B92: What if we were a truck?
Guide: Nothing, KFOR has nothing to do with goods. They couldn’t care less. It could be a truck full of weapons, unless someone alerts them, KFOR won’t stop it. There’s no control, really. Only from the police or EULEX.
B92: The guy even waved at us.
Guide: Yeah, a friendly wave, especially seeing the Belgrade license plates.
B92: Where are we now, in... in Kosovo? Are we close to Zubin Potok?
Guide: We’ll be in Zvečan soon, just a little further.
B92: In Zvečan? Are we expecting any more checkpoints before we get there?
Guide: There should be, but as you can see, there aren’t any.

In addition to regular roads from Serbia to Kosovo, there are numerous alternative routes. Goods transported illegally from Serbia to Kosovo ultimately represent a potential loss for Serbia’s budget. Most of the goods sent from Serbia to Kosovo are still exempt from VAT. According to a government decree from last year, VAT was reinstated only for oil, cars, and phone cards, but even these items can be exempt from VAT under certain conditions in Serbia. All other goods sent to Kosovo remain tax-free, meaning that part of Serbia is essentially exempt from paying VAT. Without dual control, the potential loss to Serbia's budget is enormous. Authorities have no way to monitor where a truck full of goods, reported to be going to Kosovo, ends up. It could take an alternative route back into Serbia, where the goods can then be sold at VAT-inclusive prices.

"Patriotic Theft" - Episode 2

Trucks transporting goods from Serbia to Kosovo still travel via illegal routes, largely due to the fact that EULEX and the Serbian side apply different rules at the same border crossing. This happens despite the agreement reached between Belgrade and Priština in Brussels, after last year's barricade incidents, to establish unified customs checkpoints. While waiting for this to be implemented, EULEX has decided, based on the agreement, that excise goods from Serbia must be declared exclusively at the Merdare crossing, and can no longer pass through other crossings. However, the Serbian side ignores this decision, citing the valid Serbian government decree which allows domestically produced excise goods to continue crossing through Rudnica.

B92: Isn't it logical to direct them to the EULEX checkpoint, instead of letting them turn around?
Milovan Krsmanović, Senior Customs Inspector: As far as we are concerned, they are directed to the EULEX checkpoint; our jurisdiction ends here...
B92: But they turn around in front of you?
Krsmanović: Well, as far as we’re concerned, the procedure is complete.
B92: Whose jurisdiction is it then? Who directs them back?
Krsmanović: Ah... they aren't directed back. They simply, after completing the procedure, are free to continue down the road...
B92: But I'm telling you, they turn around. That's the problem. You've completed the procedure, but they simply return to Serbia?
Krsmanović: They don't return to Serbia, but as I said, we are...
B92: But Serbia is on this side.
Krsmanović: Yes, but well, Serbia is on that other side too. Just kidding...Those are the procedures and the current reality on the ground.

Irina Gudeljević, EULEX Spokesperson: When it comes to the dialogue between Belgrade and Priština, we are here only to implement what has already been agreed between the two sides. Part of that agreement, reached in Brussels, states that due to the inability of the infrastructure to carry out proper control of goods, collect duties, and so on, excise goods must be directed to Crossing 3. The alternative routes leading to and from Kosovo are completely illegal.

Last year, due to widespread abuses causing significant losses to the budget, the Serbian government reinstated VAT on oil, phone cards, and cars. This means that those delivering such goods to Kosovo are exempt from VAT only if, for example, they provide proof that tax has been paid in Kosovo for oil. However, the situation at the Rudnica crossing (known as Jarinje on the Kosovo side), when it comes to the control of goods leaving Serbia for Kosovo, is entirely paradoxical.

Truck drivers and tankers at the Rudnica crossing receive certified papers from Serbian authorities stating they are transporting goods to Kosovo. Instead of continuing just 2 kilometers further to the EULEX checkpoint, where the goods would be registered as having entered Kosovo, the trucks turn around at the Serbian side of the crossing, form a convoy, and physically return to Serbia, from where they take illegal routes to enter Kosovo.

Under the pretext of boycotting Kosovo's customs and EULEX, customs checks are only conducted on one side, a situation unheard of anywhere else in the world.

Milovan Krsmanović, Senior Customs Inspector: As far as we are concerned, the goods should proceed down. It’s simple...
B92: But how do you record it? The truck arrives full, turns around, and leaves full again.
Krsmanović: From our side, the procedure has been completed at that part of the administrative line, so...
B92: Do they have a choice of where to go next?
Krsmanović: Yes. We don’t prevent them from continuing to the administrative crossing at Jarinje.
B92: But you also don’t stop them from re-entering Serbia with the same goods?
Krsmanović: It just seems that way, but all those goods do end up in the territory of Kosovo and Metohija.
B92: How can we know that?
Krsmanović: Well, we know. Honestly, the only way to get a clear answer is by changing the current legal procedures. That’s the only solution, without which nothing will change...

As long as the current Serbian government decree is in force, trucks carrying excise goods from Serbia to Kosovo are practically allowed to use alternative, i.e., illegal routes.

Journalists from Insajder followed the actions of truck drivers using hidden cameras at the Rudnica crossing. After receiving certified papers stating they are transporting goods to Kosovo, the trucks turn around toward Serbia and form a convoy heading to an illegal crossing.

It turned out that a convoy of trucks full of commercial goods was being escorted by a Serbian police patrol from the administrative crossing at Rudnica to an illegal route between Raška and Novi Pazar, which leads from Serbia to Kosovo.

Rade Milić, Acting Head of the Serbian Ministry of Interior's Kosovo Unit: It’s primarily a matter of the Serbian community boycotting that crossing because of the presence of Kosovo institutions, including customs and finance officials. To prevent the abuse of returning those goods to central Serbia, members of our Ministry, the regular police, assemble a convoy of vehicles and ensure they safely cross the administrative line.

B92: They escort them to the line, but what happens if one truck from the convoy turns back? Let’s say, just one truck....
Milić: Well, of course, control measures must be taken to prevent that from happening.

The alternative route to which the police escorted the convoy is one of the shortest illegal crossings between Serbia and Kosovo. It is 17 kilometers long and runs through a forest. Sections of this dirt road have been damaged by truck traffic and rain, making it difficult for two trucks to pass each other. After about ten kilometers, the path connects to a paved road in the village of Lešak, which leads directly to the main road between Raška and Kosovska Mitrovica, thus bypassing the EULEX checkpoint.

B92: Why do we accommodate those who refuse to have dual control, meaning control from both sides?
Milić: Well, if we enforced that, we would effectively contribute to hermetically sealing the administrative line, which would significantly complicate the supply and survival of Serbs in the Kosovo and Metohija region. These are questions that fall within the realm of politics and go beyond the Ministry of Internal Affairs' authority. We cannot force people to respect the so-called Kosovo institutions.

The convoy, which was under police escort and which we followed from Rudnica, travels along the Raška-Novi Pazar route. After 30 kilometers, it turns off the main road onto a dirt path, which serves as an alternative route to northern Kosovo.

After leaving the main road, the trucks encounter a police patrol stationed at every alternative crossing to northern Kosovo. By law, they should have stopped the fuel tanker because, according to both Serbian regulations and laws, this is not a legal route for trucks carrying excise goods. However, the tanker passed without being stopped. The inspection of the vehicle carrying the B92 journalist was routine:

Policeman: Where are you headed, gentlemen?
Driver: We’re going to Mitrovica.
Policeman: To Mitrovica? Why aren’t you using the official crossing down there?
Driver: I’d rather not. I’m from Peć, born in Peć. I don't want to go through EULEX.
Policeman: Where do you work?
Driver: I work in Belgrade, for a private company.
Policeman: What do you do?
Driver: Trade.
Second Policeman: Did you ask for documents?
First Policeman: Yes, I have them. Alright, safe travels.
Driver and passengers: Thank you, have a nice day.

Just 200 meters further, after the first bend, there’s an improvised parking lot. This spot is essentially a large informal market where goods are repackaged from larger trucks into smaller ones. According to the Kumanovo Agreement, the area up to the administrative line is controlled by Serbian police.

Rade Milić, Acting Head of the Serbian Ministry of Interior's Kosovo Unit: So, the purpose is to conduct checks to prevent smuggling and illegal trade.
B92: We’ve crossed these routes multiple times without being stopped or checked by anyone.

Milić: You see, members of our Ministry have primarily identified so-called hotlines, hotspots, or what we can call alternative routes. Along this stretch of about 140 kilometers, there are approximately 20 of them. So, a large number of people is needed to thoroughly cover this area.

However, a Serbian Ministry of Interior patrol escorts the convoy practically to an improvised police checkpoint, located near the beginning of the alternative route from Serbia to Kosovo. This checkpoint consists of just two policemen in a car. A few hundred meters further, in the area that is formally supposed to be controlled by Serbian security forces before the administrative line, goods are being repackaged from larger trucks into smaller ones. In this in-between space, there are neither police nor KFOR personnel, as they do not have the authority to cross into Serbia. To ensure that goods on which no Kosovo duties will be paid can pass by KFOR soldiers undisturbed, the trucks we have been following will repackage their goods from large trucks into smaller ones coming from the direction of Kosovo.

A tanker truck from the Belgrade company "Knez Petrol," which has been part of the convoy from the start, also stopped here. "Knez Petrol" deals in fuel trade. 

The fuel is transferred from a tanker with over 30 tons of fuel into a smaller tanker, which holds about 6 tons and is covered with a tarp, just a few hundred meters from the police checkpoint. The smaller tanker, disguised under the tarp, will pass by the KFOR patrol a few kilometers later. In this case, the fuel tanker appears to be a truck carrying food, making the chances of inspection minimal.

The smaller tanker, which is covered with a tarp, as we have discovered, belongs to the company "Čeki Neca" from Lešak in Kosovo. The owner of the company, Radomir Čekrlić, claims in an interview with Insajder that everything is legal and that he doesn’t understand what the issue is.

B92: Alright, why is the tanker taking fuel from Knez Petrol covered with a tarp?
Radomir Čekrlić, owner of "Čeki Neco": No, no such tanker can come to Kosovo. It can't, that police officer isn’t stupid, he won't go to jail if it’s right there, there isn’t just one patrol.
B92: Wait, wait, wait, we filmed your tanker...
Čekrlić: Yes...
B92: ... taking fuel from Knez Petrol’s tanker...
Čekrlić: Yes...
B92: ... and your tanker was covered with a tarp, is that right?
Čekrlić: It wasn’t covered with a tarp, those are drums, not covered with a tarp, those are drums, drums!
B92: What are drums?
Čekrlić: Drums are thousand-liter containers.
B92: Yes, yes, yes...
Čekrlić: And it can't come back...
B92: And all of them are on the truck's trailer, is that right?
Čekrlić: Yes.

B92: The one that's covered with a tarp.
Čekrlić: Yes, it's covered with a tarp.
B92: Why?
Čekrlić: Well...uh... how else am I supposed to carry it? There's no other way to transport it.
B92: But why is it covered with a tarp? That's what I'm asking. Why isn't it uncovered?
Čekrlić: Why? Because... whether it's covered with a tarp or not, it doesn't matter... the important thing, the really important thing, is that the fuel doesn’t go back to Serbia.
B92: That's fine, but you're not answering my question. Why are you hiding the tankers that...
Čekrlić: Some are hidden, some aren't.
B92: And why are you hiding them?
Čekrlić: It's not hidden... it’s not hiding.
B92: Okay.
Čekrlić: It just happens to be under a tarp, by chance. I had to give a hundred euros to the guy with the winch. We drive fuel with the winch, with a tarp, and everything uphill! No one can pass, no vehicle can pass, except for some short truck, a towing vehicle, some Russian truck, brothers... The important thing, the really important thing, is that we’ve never returned the goods to Serbia.
B92: Do you understand my question?
Čekrlić: Yes, I understand you.
B92: By driving that small tanker covered with a tarp, are you hiding from KFOR?
Čekrlić: Well, we both hide from KFOR and we don't hide from them, it depends... maybe we are hiding, the driver might be, so they don’t block that alternative route we have.

Since last year VAT was reinstated on fuel, Knez Petrol will be exempt from VAT in Serbia only if they provide proof that the tax was paid in Kosovo. According to our investigation, the company Čeki Neco effectively pays taxes to the Serbian budget and then submits a confirmation, based on which VAT is refunded to Knez Petrol, which supplied the fuel to Kosovo.

Srđan Knežević, the owner of Knez Petrol, agreed to speak with Insajder only after the first episode aired, in which we revealed that the company Knežević Petrol, which has one employee and is registered in his sister's name, is one of the largest exporters of fuel to Kosovo, with multimillion-euro transactions. He says there’s nothing controversial about it and that his company Knez Petrol has over 500 employees and operates dozens of gas stations in Serbia. According to Insajder's investigation, Knez Petrol delivered goods worth €3.7 million in 2010. In the same year, Knežević Petrol, registered at the same address as Knez Petrol, sold €3 million worth of fuel and derivatives in Kosovo. Knežević Petrol was also one of the largest exporters in 2011, with a turnover of €5 million. The owner is Jelena Knežević, and according to financial reports, the company has one employee. Srđan Knežević says everything is done legally and that there’s nothing unusual about the fact that one of the largest exporters in 2011 was a company with just one employee.

B92: Why is the company "Knežević Petrol" entering this business?

Srđan Knežević, owner of Knez petrol: "Knežević Petrol" only entered the business in 2010 because "Knez Petrol," a large company, became part of the CVPO, and when I say CVPO, I mean we entered the center for the largest VAT payers. However, "Knežević Petrol" is a medium-sized company, so we had to wait a lot for the VAT refund from the tax police. But for a medium-sized company like "Knežević Petrol," inspections take place after 30 days, and the VAT is refunded within 45 days. "Knežević Petrol" only has one employee, the owner, who is my sister Jelena Knežević; she is the owner and director of the company. The headquarters of "Knežević Petrol" is also located at the same place as "Knez Petrol" on Carice Jelene Street 28 in Batajnica.

Apart from "Knežević Petrol," the company "Knez Petrol" also trades with Kosovo. We filmed one of the company’s tank trucks on an illegal road leading from Serbia to Kosovo. Earlier, the driver of the tank truck had received verified documentation at the Rudnica crossing on the Serbian side, confirming that he was transporting fuel to Kosovo. However, the tank truck, like other trucks, turns around at the Rudnica crossing, forms a convoy, and later, under the escort of a Serbian police patrol, heads to an alternative road where the fuel is transferred. That road is not designated for the passage of goods under Serbian government regulations.

B92: So when you come with that convoy of trucks to the alternative road, as we filmed you...

Knežević: Yes...

B92: ...you stop behind the police checkpoint...

Knežević: Yes...

B92: ...and another tanker arrives, and you transfer the fuel.

Knežević: Yes, now I’ll... 

B92: Why is that?

Knežević: When the barricades were put up, before that, all tank trucks would go directly to the pump. Since the barricades were put up, Serbia built roads that are not suitable for trucks and trailers; these are hilly roads where large vehicles cannot pass. We come to that road and then transfer the goods to my customer, into smaller tankers of 10 tons each that can pass over the hills.

B92: But that fuel transfer is not in line with the regulations.

Knežević: What do you mean, it's not?

B92: It is not in accordance with the fuel transfer regulations?

Knežević: Well, in a way, you’re right... Yes, it’s not in accordance, but there is no other way to send fuel to the Serbian part of Kosovo. This is the only system we have, which is why we left only one company...

B92: It could be done via Merdare.

Knežević: Yes, via Merdare, but then you have to pay... the Serbian government doesn’t want to pay VAT to the Albanians. They want that VAT to stay in the Republic of Serbia, to go into Serbia’s budget, not Albania’s budget.

We showed the footage of the fuel transfer to the president of the Association of Private Gas Station Owners, Milan Rakić.

Milan Rakić, President of the Association of Private Gas Station Owners: "I don’t want to single out or label the colleague whose tanker I see in this video, but I do want to point out that, I’m certain, my colleague would not be able to conduct this business in this way without the protection of certain top state authorities."

B92: Isn't that smuggling?

Srđan Knežević, owner of Knez petrol: "No, I don’t see any reason for that. From our perspective, look, the company ‘Knez Petrol’... we have paid all obligations, we paid VAT immediately to NIS, and we are only exempted from VAT when we receive confirmation from our buyer in Kosovo. The price difference for us is the same whether we sell in Kosovo or here in Belgrade, the price difference remains the same."

B92: Why don’t you send the goods through Merdare?

Knežević: "That’s how the Republic of Mirko Cvetković prescribed it, and we operate according to those regulations, as per the directives issued by Mirko Cvetković's government. We work according to those laws."

B92: But none of the directives state that?

Knežević: "Well, that’s how the law was written. That’s how our Republic, the Government of Serbia, wrote it, and we follow that law. Tankers cannot move until the police convoy arrives, and we don’t go where we want; we go where the police lead us."

B92: You know that goods, including fuel, cannot enter Kosovo except through Merdare?

Knežević: "I don’t know about that..."

In 2007, the Organized Crime Prosecutor’s Office filed charges against Srđan Knežević, the owner of "Knez Petrol," whose tanker, under police escort, was transporting fuel to Kosovo. He was labeled as a member of the so-called "oil mafia" for allegedly abusing his position by selling kerosene as diesel D2. This allowed the group to avoid excise duties and make enormous profits from the price difference.

Meanwhile, as confirmed by Insajder, a first-instance verdict has been issued, and Knežević was sentenced to two and a half years in prison. He is currently free pending the final judgment. The appeal process is ongoing.

Srđan Knežević, owner of "Knez Petrol": "I was the 17th person indicted in that case. It was labeled as an abuse of office—negligent work. All the fuel I bought was properly accounted for in my records. I purchased it from the company 'Kolor Bravo' in the prescribed manner... paid my obligations, paid VAT, paid 10% profit at the end of the year, and did everything according to the law."

B92: So why were you charged then?

Knežević: "Why was I charged? Well, they said we knew where the fuel originated. We received a delivery note and an invoice from the company that sold it to us, 'Kolor Bravo,' a company that is still operating today."

B92: And you bought it as diesel D2?

Knežević: We bought it as diesel D2, and all the paperwork shows it as diesel D2. We sold it to our customers in transit as diesel D2, and our drivers transported it as diesel D2. For 1.7 or 1.8 million dinars... that's a laughable amount considering our total revenue.

B92: Well, that’s what they could prove, I assume?

Knežević: No, the investigation lasted six months. If they had anything else to prove, they would have. You know, there was all this noise about 10 million euros... oil mafia... all sorts of things. And in the end, what do we get? A case over 1.6 million dinars? That’s a disgrace. For a company that employs 550 workers, in a situation where Serbia’s economy is struggling, you make so much noise over 1.6 or 1.7 million dinars? In any normal court, this would be a minor offense, a fine—maybe 50,000 to 100,000 dinars. It’s ridiculous. Believe me, it’s ridiculous. “Knez Petrol” is not a smuggling company.

On May 23rd of this year, "Knez Petrol" received the "Belgrade Victor" award. This recognition for the most successful businessmen is awarded by the Belgrade Chamber of Commerce. The main award and the title of "Businessman of the Year" went to Goran Perčević, a former member of the SPS (Socialist Party of Serbia) and current director of the company Interkomerc. The award ceremony was attended by SPS President Ivica Dačić.

Ivica Dačić, Minister of Police at the Belgrade Chamber of Commerce awards ceremony (May 23, 2012): "As economic development is the foundation for all other progress, you, the businessmen, play a significant role in it. You create new products and value, introduce new technologies and innovations, you provide jobs, and you embody the concept of social responsibility. The rest of us are here to provide a favorable environment so that you can be even more successful."

Srđan Knežević says that "Knez Petrol" is not doing anything illegal because VAT is paid to the state of Serbia, and on the alternative route, they transfer the fuel to a smaller truck because they don’t want to pay Kosovo customs, as Serbia doesn’t recognize Kosovo as a separate state. "Knez Petrol" is one of the largest oil exporters from Serbia to Kosovo.

Regarding the transfer of fuel from larger to smaller tankers on the alternative route, police officials also offer an explanation. They state that the fuel is transferred to smaller tankers because KFOR only allows trucks up to 3.5 tons to pass through that route. Meanwhile, KFOR, in its response to Insajder, states that all goods must go through official border crossings and that alternative routes are illegal. And for EULEX too, using alternative routes is considered smuggling.

Xavier de Marnhac, head of EULEX: "If you see a truck in the north that is not going through Merdare, it is a smuggling truck, without a doubt."

B92: We were there two days ago, and there were a lot of trucks at the crossing and...

Xavier de Marnhac: No, not at the crossing, maybe on the bypass road, but not at the crossing.

B92: Yes, yes. Are you familiar with this?

Xavier de Marnhac: Yes, yes, we are aware of it, and we are considering how to address it.

B92: But doesn’t that suggest that EULEX is somewhat responsible for what we call the gray zone in trade between Serbia and Kosovo?

Xavier de Marnhac: You see, there are two problems here. On the one hand, there are the crossings, which are the main area of our work, and then there is what we in our jargon call the "green border." The "green border" has, for many years, and still is as far as I know, the responsibility of KFOR. This was the case in the past when UNMIK was present, and I was in KFOR at that time, so I am very familiar with the situation.

Naim Huruglica, Director of Kosovo Customs: "The budget, on both sides... I think that the Kosovo budget suffered greater losses from this, but certainly the Serbian budget as well, because according to our data, smugglers exploited this not only to import goods without paying customs duties, but many times the goods never even reached Kosovo. For example, it was often just an empty truck, or the goods were different from what was declared. Once they realized that the only control in most cases was merely the paperwork, they took advantage of that."

Xavier de Marnhac: "There is some responsibility when we talk about the situation that existed. There was definitely a vacuum regarding the situation in northern Kosovo, generally speaking, and a vacuum creates conditions for this... but when looking at responsibility, I think the responsibility is shared..."

B92: "Between Kosovo and Serbia?"

Xavier de Marnhac: "Yes, but also to some extent with the international community, which didn’t always take the right steps at the right time, for various reasons. The overall intention was probably, for too long, to keep the situation calm and stable, avoiding unnecessary, or what could be interpreted as unnecessary, tension."

While the current situation at the crossings remains as it is, truck drivers, under the pretext of boycotting Kosovo customs officers and EULEX, take an illegal route from Serbia into Kosovo, which leads them to an intersection four kilometers past the regular Jarinje crossing, bypassing the EULEX checkpoint.

In this way, goods can be smuggled to the Albanian community south of the Ibar River without any taxes, and by using alternative routes, they can be brought back into Serbia, tax-free.

B92: "The problem is that the goods sent down there are exempt from VAT, and the lack of control could mean a loss for the budget."

Milovan Krsmanović, Senior Customs Inspector: "We have pointed this out many times, and it’s no secret, but I tell you, the legal provisions related to VAT collection and VAT exemptions for the territory of AP KiM (Autonomous Province of Kosovo and Metohija) during the validity of Resolution 1244 are clearly defined. So now, we are forced to act within the legal frameworks prescribed by laws and regulations. Nothing beyond that."

Most of the goods leaving Serbia for Kosovo are still exempt from VAT. On the alternative route, where we filmed fuel being transferred from a large tanker to a smaller one concealed under a tarp, other goods are also repackaged, transferred from larger to smaller trucks. The goods entering Kosovo in this way are not subject to customs duties and can be smuggled into the southern part, as has been happening for years. In this way, individuals from Serbia and from the southern (Albanian) part of Kosovo have been sharing profits at the expense of the budget for years. On the other hand, a truck transporting goods that are exempt from VAT in Serbia because they are headed to Kosovo can sell part of the goods along the way, return the rest to Serbia, and sell it at prices that include VAT. The justification from the representatives of Serbian institutions, specifically the police, is that they escort the trucks to the alternative route leading to Kosovo because the drivers are boycotting Kosovo customs. However, the repackaging of goods happens without any oversight, meaning that when the truck returns to Serbia, it will pass by the police patrol on the alternative route, which has no way of verifying whether the same amount of goods declared to the tax authorities at the Rudnica crossing was transferred to the smaller trucks during the repackaging.

Rade Milić, Serbian Ministry of Interior's Kosovo Task Force: "In such cases, the goods or the truck should be returned to the customs office, or the authority that conducted the inspection, to undergo a control."

B92: "Yes, but we haven’t seen that happening."

Milić: "Well, I’m sure it does happen. A police officer is there to check the goods, or the tanker, as it returns. To open the truck. If it’s not a tanker, then whether it’s a truck, van, they are to inspect the vehicle. They are to check whether it’s fully loaded, empty, and so on. Of course, if it’s full, they are required to take certain legal measures."

B92: "Yes, but it’s clear that there are only two police officers with a car there, which doesn’t seem like proper conditions for such a task. That’s what I’m trying to say."

Milić: "Well, you know, conditions are what they are. The border is 140 kilometers long from the north, so there’s always the possibility of smuggling. But it’s always our responsibility to prevent that smuggling."

As shown in Insajder's footage, everything is being repackaged on the alternative route—from flour to excise goods.

State officials had previously agreed to stamp the paperwork for goods exiting to Kosovo because it was prescribed by the Regulation on Goods Traffic, which the Serbian government has not changed despite the Brussels agreement and the new situation.

The Insajder journalists have been working on this series for a year, during which time there has been a change in government in Serbia. Aleksandar Vulin, who recently became the head of the Office for Kosovo, refused to speak to Insajder, explaining that he was not familiar with the situation as he had just taken office.

B92: "So, it seems like a government decision contributed to a form of smuggling, so to speak."

Rade Milić, Serbian Ministry of Interior's Kosovo Task Force: "I wouldn’t agree that it’s a government decision. The government had the best intentions, with clear goals—to help the Serbs and ensure their sustainable survival in the northern region."

Those who transfer goods from larger trucks into smaller ones, or fuel from larger to smaller tankers on the illegal route, claim they are doing so with the state’s approval, asserting that Kosovo is part of Serbia and that the state itself created the alternative routes.

Radomir Čekrlić, owner of "Čeki Neco": "The municipalities of Leposavić and Raška built it. On the Raška side, they did it, Raška, the Municipality of Raška expanded that road, and the Municipality of Leposavić."

B92: "So, the state built that...?"

Čekrlić: "The state built it, the Municipality of Raška and... they built the road, and it’s the only alternative route we have to supply ourselves. We’re struggling with it, and that’s how it remained. Until KFOR came, they heard about some manipulation, saying there was a lot of money involved, which isn’t true. And... they mentioned some hoses over there, I saw some hoses over there... I find it funny because I don’t see why anyone would return goods if VAT has been paid and everything is in order... there’s no reason to return it."

B92: Do you know that transferring fuel from one tanker to another in this way is illegal?

Čekrlić: Ahh... well, what can we do? That's just how things are. I know that normally, we should be going to the gas station on both sides, but we can’t. How can we go? We have to survive; a man has to live, so he transfers. What else can he do? He reaches the buffer zone, and everyone knows that, the police know it, the most important thing is that the goods don’t return to Serbia. That’s the most important thing, nothing else. I don’t understand this hunt, this B92 hunt to bring those Serbs, to drag them to Kosovo... This is a hunt on the few Serbs who are left there, 90 percent of whom are businesspeople who stayed with the gas stations. None of them returned goods to Serbia.

B92: Then how did the abuses happen?

Čekrlić: What abuses? That’s just propaganda, pure propaganda. Whether this is political, I don’t know, but it's not about political views or anything like that.

One of those who became wealthy thanks to the Serbian government’s 2005 decision to abolish VAT on all goods going from Serbia to Kosovo is businessman from northern Kosovo, Zvonko Veselinović. He was arrested in Serbia in December last year and was indicted for the illegal appropriation of 32 trucks from Hypo Leasing. According to investigations conducted in Kosovo, Zvonko Veselinović smuggled oil from Serbia to Kosovo together with one of the most notorious figures in Kosovo’s criminal circles, Mentor Bećiri.

Naim Huruglica, Director of Kosovo Customs: "Our investigations or our intelligence officers found that it’s true, that people, regardless of their nationality, were doing this together because a lot of goods managed to reach southern Mitrovica or other parts of Kosovo. Certainly, this couldn’t have been done solely by people from Serbia or only from the northern part; they were Albanians of Kosovo nationality."

That’s why the UNMIK administration, as early as 2005, 2006, and 2007, before the declaration of independence, attempted to identify the ways goods were being smuggled between Serbia and Kosovo. The investigation revealed that Zvonko Veselinović and the Albanian businessman Mentor Bećiri were organizing the illegal trade of oil. Mentor Bećiri is the godfather of Ekrem Luka, who, according to UNMIK’s findings, is at the top of organized crime in Kosovo. During the investigation, UNMIK discovered that Mentor Bećiri was involved in smuggling drugs and cigarettes from Montenegro and Albania, as well as smuggling oil and oil derivatives from Serbia.

He has been arrested several times but was always released because, according to official records obtained by Insajder, he enjoys the protection of the Kosovo Police Service (KPS) and Kosovo authorities. After Kosovo declared independence, all of UNMIK’s cases were transferred to EULEX, and it appears that the investigation into the illegal oil trade, in which Veselinović was allegedly involved according to previously collected data, was abandoned.

B92: And what was the connection between the two of them?

Naim Huruglica, Director of Kosovo Customs: "Well, it was suspected that they were working together in the transportation of oil derivatives, meaning from the northern part to the southern part, those were the suspicions, you know..."

B92: That Veselinović was exporting from Serbia?

Huruglica: "Yes, that he was doing that, and also cooperating with Mentor Bećiri and his group to move the goods to the southern part. They did this in various ways."

Borislav Pelević, member of the Serbian Parliament's Committee for Kosovo and Metohija, former member of the SNS Presidency: "There has never been a single complaint about his [Zvonko Veselinović's] business activities. He has never been criminally liable. No charges have ever been filed regarding his business. I don’t know what you are talking about."

B92: "How can you not know? You don’t know that he collaborated with Mentor Bećiri in the south?"

Pelević: "That’s a lie. That’s a setup by the authorities in Serbia and the BIA [Serbian Intelligence Agency]. It’s a fabrication. They want to portray him as a criminal and have tried to discredit him with the Serbian people in Kosovo and Metohija. The Serbian people know very well that he never did business with such people, nor with any Albanians. These are fabrications by the Serbian authorities, who are looking for an excuse to arrest him."

B92: "Wait, as soon as there’s talk about crime, you invoke patriotism."

Pelević: "That’s not true. I said it earlier, but you don’t want to hear it."

While local Serbs spent months on barricades last year to prevent Kosovo's secession from Serbia, Zvonko Veselinović’s machines, excavators, and trucks were digging new alternative roads. Zvonko Veselinović is one of those who organized local Serbs to block what was claimed to be Kosovo’s secession. At the same time, according to Insajder's investigation, the Veselinović family quietly acknowledged the state of Kosovo by registering at least one company in the Priština registry, which means they had to fill out a form that said "Republic of Kosovo." Upon checking the Kosovo registry, Insajder journalists discovered that on June 17, 2008, after Kosovo declared independence, the company "Team Petrol," which owns Zvonko Veselinović’s gas stations, was registered under his father, Jovan Veselinović, in accordance with Kosovo’s laws. STR "Kristal," registered under Zvonko Veselinović’s brother Žarko, was registered on February 18, 2005, and is still listed as active in the Kosovo registry today. None of these companies, under these names, are registered in Serbia’s Business Registry Agency.

Similarly, Zvonko Veselinović, his wife, and his brother were on the list of people receiving salaries from the Kosovo government, meaning they were officially employed by the Kosovo Post Office. At the same time, the media portrayed him as one of the biggest patriots defending Serbia’s interests.

Borislav Pelević, member of the Serbian Parliament's Committee for Kosovo and Metohija, former member of the SNS Presidency: "I would never protect anyone, even if it were my friend Zvonko Veselinović, if he were involved in criminal activities. I would be the first to issue an arrest order, if I were in power, if there were evidence that he was involved in crime and acted against the Serbian people in Kosovo and Metohija."

B92: "Tell me, how did such a young man manage to become wealthy so quickly? His father owned a small glass shop, and now Zvonko Veselinović has a business empire?"

Pelević: "Well, how did any businessman in Serbia become wealthy, even if their fathers were, for example, farmers? You’re asking questions that don’t make much sense."

INTERVIEW WITH ZVONKO VESELINOVIĆ (from Pečat): "Everyone here, all the citizens of Mitrovica, know that I’ve been with the people since 1999, actively resisting the Albanian occupation. I have been fighting alongside my fellow citizens for a better future. About four or five years ago, I started seriously engaging in business. Of course, I’ve only been involved in regular, legal businesses, and Serbia knows that. I haven’t smuggled anything; I haven’t engaged in any criminal activity."

Zvonko Veselinović was one of the first „guardians of the bridge“in Kosovska Mitrovica, formed in 1999. The group was organized to control the movement of Albanians, KFOR, and UNMIK across the bridge in Kosovska Mitrovica. This group also served as an informal police force in Kosovska Mitrovica, and some of its members were suspected of various criminal activities.

Oliver Ivanović, former State Secretary in the Ministry for Kosovo and Metohija: "He was 18 or 19 years old in 1999. He was quite a brave young man at the time, and he stood out in a few instances with his very courageous actions when it was necessary."

B92: "In what sense?"

Ivanović: "He wasn’t afraid of either Albanians or the French Gendarmerie, who were there at the time, I can say that. Otherwise, he was involved in a glass shop—his father ran the business, and he helped out occasionally."

B92: "You don’t know that he was also involved in drug trafficking and that he was arrested in 2003?"

Ivanović: "I’ve heard that, of course. He was accused in the media and the public, but, you know, I prefer that if there is merit to such accusations, it should be handled by the appropriate authorities. Those who accuse him should provide something concrete. I don’t have that kind of information."

Zvonko Veselinović was arrested in 2003 on suspicion of drug dealing. He was arrested along with Dražen Stojković and Strahinja Šunjević from Kosovska Mitrovica and Novi Pazar in the Raška and Novi Pazar areas. They were suspected of organizing the sale of over three kilograms of heroin. During police questioning, all three admitted to the crime. Veselinović said he had obtained the heroin from a guide known as Kena from Priština. Together with Stojković, he attempted to sell the heroin for 39,000 euros to a buyer found by Strahinja Šunjević.

It turned out to be a sting operation organized by the police in Novi Pazar, with the buyer being an undercover officer from the Novi Pazar Police Department. After taking the heroin, the officer signaled his colleagues, who arrested all three men.

Veselinović later retracted his confession in front of an investigative judge, claiming that he had been beaten by the Novi Pazar police and forced to sign a confession for something that did not happen. To prove this, Veselinović showed the judge a bruise on his knee, which was noted in the court records. Later, the District Court in Kraljevo accepted this as evidence that Veselinović had indeed been beaten by the police.

Three years later, after two trials, all three men were acquitted by a final judgment of the District Court in Kraljevo. Two years after the acquittal, Strahinja Šunjević was arrested in Novi Sad and sentenced to four years in prison for selling heroin from Kosovo in the Vojvodina region.

Oliver Ivanović, former State Secretary in the Ministry for Kosovo and Metohija: "But don’t let the fact that there is a criminal in the north make us send in ROSU special units or other forces. There is much more fear of Priština than fear of the existence of crime, which is not at as high a level as Priština and certain international circles portray."

Veselinović is one of the best examples of how so-called patriots, under the guise of defending Serbian interests and with slogans like "Kosovo is Serbia," abuse the position of Serbs in Kosovo and mobilize the entire state to defend their business interests. During last year’s barricades, he was hailed as one of the greatest defenders of the Serbs.

At the same time, over the years, thanks to the Serbian government's decision in 2005 to abolish VAT on all goods going from Serbia to Kosovo, he built an entire empire through the resale of oil. The public was left with the impression that unarmed people on the barricades were defending Serbia.

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