Long-standing legal tensions between Slovenia and Bosnia and Herzegovina over the Ugljevik coal power plant have eased after the Slovenian side agreed to pause international arbitration while negotiations move forward. Elektrogospodarstvo Slovenije accepted a proposal from the Government of the Republic of Srpska (RS), state utility ERS, and RiTE Ugljevik to temporarily suspend arbitration proceedings in Washington worth about €665 million, opening space for a negotiated settlement.
The arbitration stems from unpaid obligations tied to electricity deliveries, mainly interest on power supplied but not paid for by RiTE Ugljevik. The conflict intensified after the Slovenian company won earlier court cases in Belgrade, which confirmed the legitimacy of its claims. Prior to restarting talks, the Slovenian side indicated it could write off around €30 million if a deal on repaying the remaining debt was secured.
A deadline of 6 February 2026 had been set for progress, after which ICSID proceedings in Washington would have continued, with potential compensation approaching €700 million. RiTE Ugljevik’s management said recent discussions focused on reaching a third agreement to regulate outstanding liabilities. Defined timelines and conditions are reportedly in place, with hopes of a final deal by the end of April.
RS Energy and Mining Minister Petar Đokić stated that the current arrangement helped avoid major financial risk, noting that a full arbitration award could have reached €700 million. He said the RS Government has guaranteed that obligations will be met, primarily by RiTE Ugljevik and ERS, with state intervention only as a last resort. Once a formal deal is signed, the arbitration case is expected to be withdrawn, effectively closing the dispute.
Elektrogospodarstvo Slovenije originally helped finance the construction of the Ugljevik plant and secured rights to one-third of its output. Power deliveries were disrupted during the breakup of Yugoslavia, leading to legal action in Belgrade and later at ICSID. The Belgrade court ruled in favor of the Slovenian firm, ordering payment of principal and interest and confirming the duty to resume deliveries as long as the plant operates.
According to Minister Đokić, roughly 20% of the total debt determined by the courts has already been repaid, signaling partial progress toward resolving the long-running dispute.
