Israeli Chamber of Commerce opens office in Banja Luka amid Bosnia's political divide

The Israeli Chamber of Commerce last week opened an office in Banja Luka, the seat of government of the Bosnia and Herzegovina entity of Republika Srpska, in a move officials said would “further strengthen” the two sides’ ties.

The opening comes when Israel faces growing international criticism due to its genocidal war against Palestinians in the Gaza Strip, including by the Sarajevo-based Federation of Bosnia and Herzegovina, the other main political entity within Bosnia.

But in Republika Srpska, Israel has enjoyed strong support since the start of the war on Gaza in October 2023. Milorad Dodik, the entity’s former president and effective leader, has frequently expressed pro-Israeli views positioning Republika Srpska as a key ally of Israel in the Balkans.

Following the outbreak of the Gaza war, Dodik said that Republika Srpska fully supports Israel’s right to self-defence, while the Palace of the Republic in Banja Luka was illuminated with the colours of the Israeli flag.

Dodik, who last year was stripped of his post and banned from holding political office for six years. That was after being convicted for refusing to comply with the decisions by the international envoy overseeing the peace deal that ended Bosnia’s 1990s war. He has opposed initiatives for the international recognition of Palestine. In August 2025, he said “a state that does not exist in reality cannot be lawfully recognised”.

Speaking at the opening ceremony in Banja Luka on Thursday, Dodik highlighted the political and historical ties between the Serb and Jewish people and what he described as their similar “suffering”.

“We have shown that we can, under impossible conditions and in an environment that is historically speaking hostile, preserve our identity and our holy word, which is freedom,” said Dodik.

Israel’s Ambassador in Bosnia and Herzegovina, Galit Peleg, said the office in Banja Luka is aimed at connecting businesses and to promote “investment cooperation“ between the two sides, without offering details.

“At a time of protests and threats in Sarajevo, the Office of President Milorad Dodik offered us a beautiful building in Banja Luka,” Geleg said at the ceremony, referring to the pro-Palestine demonstrations in Bosnia during the war on Gaza.

Dodik said Republika Srpska will create a support programme for new technologies from Israel, without disclosing details. Similarly, Republika Srpska authorities have touted the possibility of a significant Israeli investment, without providing any information.

The office’s president is Amir Gross Kabiri, an Israeli businessman, industrialist and investor who in recent years has become one of the most prominent figures in Bosnia’s economic and political life. He became known to the country’s wider public after his company, a subsidiary of the M.T. Abraham Group, an international conglomerate and investment group, signed a contract in 2020 to lease the facilities of the collapsed Mostar aluminium giant Aluminij.

After signing the agreement on the office opening, Ana Trisic Babic, the acting director of the Office for International Cooperation of the Republic of Srpska, said the entity and Israel “have long nurtured friendly relations”, which she linked to “the historical experiences of the two peoples and the challenges they face”.

She added that the authorities of Republic of Srpska view Israeli Prime Minister Benjamin Netanyahu’s support for the opening of the office as a confirmation of those relations.

Rescued from bankruptcy?

Davor Gjenero, a Zagreb-based analyst with extensive knowledge of political affairs in the Western Balkans, said the office opening will give Republika Srpska’s authorities an opportunity to alleviate the entity’s significant financial problems, including rising debt.

He said Republika Srpska “is facing a kind of bankruptcy and any kind of economic activity with Israel can be also part” of its strategy to address the issue.

Gjenero also highlighted the “connection” between the policies of Dodik and Serbian President Aleksandar Vucic, which he described as a potentially “dangerous” development amid rising tensions in Bosnia.

“This could also be a sign that centrifugal processes are taking place, which could pose a serious threat to the unity and sovereignty of Bosnia and Herzegovina,” he said.

Gjenero argued that the cooperation between the Republika Srpska and Israel, along with the growing cooperation between Serbia and Israel – particularly in the military sector – could further increase tensions in Bosnia and Herzegovina.

He said “any activity” by the Republic of Srpska “without coordination with Sarajevo can be a serious problem for Bosnia and Herzegovina in its dialogue with the European Union”, as the country seeks EU membership.

“Also, any kind of making Dodik stronger is dangerous for relations between Sarajevo and Banja Luka and internal relations in Bosnia and Herzegovina.”