ZAGREB, 1 March 2022 - The government has not proposed nor has President Zoran Milanović ordered raising the level of preparedness of the Croatian Armed Forces, the Office of the President said in a statement on Tuesday, stressing that the current security situation in Croatia does not require raising the level of the army's readiness.

"The President of the Republic is in close contact with the commanders of the Croatian Armed Forces and the chiefs of security and intelligence. The current security situation in Croatia does not require raising the level of preparedness of the Croatian Armed Forces. The government has not proposed and President Zoran Milanović has not ordered raising the level of preparedness of the Croatian Armed Forces," the Office of the President said.

Under the Defence Act, orders putting the Croatian Armed Forces on alert are issued by the President of the Republic following a proposal to such effect by the government.

The Office of the President issued its statement after Prime Minister Andrej Plenković on Monday night made a statement about Russia's aggression against Ukraine.

"In order to provide the public with accurate information and avoid alarming Croatian citizens, the Office of the President considers it necessary to comment on the statement by Prime Minister Andrej Plenković who said last night that 'the Croatian Army has raised the level of preparedness from the usual level,'" the Office of the President said.

Under the Defence Act, putting the army on alert implies mobilisation, organisation, security and other measures and procedures necessary to prevent and remove a threat of attack on Croatia and other threats to the country's sovereignty, independence and territorial integrity, its citizens and property, the President's Office said.

ZAGREB, 1 March 2022 - Prime Minister Andrej Plenković will submit a report on the situation in Ukraine to the Croatian parliament on Wednesday.

The report comes after Russia mounted a military invasion of Ukraine on 24 February.

Croatia has expressed its strong support for Ukraine and sharply condemned the unprovoked Russian aggression.

The Croatian parliament has adopted a declaration on Ukraine, calling on Russia to immediately cease the military attack and withdraw its troops from Ukrainian territory.

The Croatian government has adopted a package of support measures for Ukraine relating to the possible acceptance of refugees, gas supply, and a ban on the use of Croatian airspace by Russian airlines and aircraft.

Croatia will support Ukraine with protective military equipment and infantry weapons, worth HRK 124 million (€16.5m) in total.

The government measures have been backed by the parliamentary majority and the opposition.

ZAGREB, 1 March 2022 - There are currently 18 Ukrainian refugees at the Plitvice Motel in Zagreb, three accommodation facilities in the city have been prepared for the reception of refugees and additional capacities are being discussed, Zagreb Mayor Tomislav Tomašević said on Tuesday.

"A total of 344 Ukrainian refugees have arrived in Croatia so far," the mayor said, noting that the city administration was communicating intensively with the competent services regarding the reception of refugees.

Tomašević noted that refugees were arriving and continuing on to further destinations, with many of them finding accommodation with their relatives.

The mayor said that a much bigger refugee wave was expected once organised transport was established.

The city currently has 200-300 beds available for the refugees, which is more than enough for the time being, he said, noting that other services were also available by city health institutions, including epidemiological protection, psychological assistance and general health care.

ZAGREB, 1 March 2022 - Red Cross Croatia on Tuesday made a fundraising appeal for Ukrainian  refugees and displaced persons following Russia's invasion of their country.

Red Cross Croatia said that money can be donated via its bank account,  IBAN: HR0923600001503056530, Poziv na broj odobrenja 705, Zagrebačka banka d.d., Zagreb, Trg bana J. Jelačića 10, primatelj Hrvatski Crveni križ, Ulica Crvenog križa 14-16 Zagreb.

For donations from abroad, the BIC (SWIFT) code is ZABAHR2XXXX

Donations can also be made via mobile phone apps using the 2D barcode.

All the proceeds will be used to assist refugees and displaced persons who are being cared for by the International Red Cross and the Red Crescent in Ukraine and other countries which have taken in refugees, including Croatia.

March 1st, 2022 - The museum was established in an old Istrian house that was once home to one of the pioneers of truffle hunting

A truffle museum was opened in Istria, in the village of Paladini near Buzet town. Dedicated to one of the oldest and most precious ingredients in gastronomy, the museum was opened by the Karlić family, writes Glas Istre/Doria Mohorović. The family has many years of experience in truffle hunting and are one of the most renowned manufacturers of truffle products in Croatia and beyond.

For a good part of the local population, truffle hunting is both a business activity and a way of life. The nearby Motovun forest is the biggest truffle habitat in Istria, rich in this valuable item of specific taste and smell that only grows underground. This is why Buzet was declared the City of Truffles in 1999, and their truffle story is now crowned with the newly opened attraction.

Three years ago, Ivan Karlić started to bring his vision to life with a lot of enthusiasm and a great deal of patience. Aided by the locals, he started to collect information, stories, photographs, and old tools used by truffle hunters of the past.

‘From an early age, I spent a lot of time with my late grandpa Ivan, we’d always been very close. As I often tagged along when he went truffle hunting or purchasing truffles from other local hunters, I got to hear many interesting stories. After my grandpa passed, along with a number of truffle hunting pioneers, I had a wish to share all these old stories to prevent them from falling into oblivion and to keep them alive for new generations’, said Ivan Karlić.

He first entered the world of truffles when he was two years old, when he accompanied his parents as they went truffle hunting in the woods. He calls it the best job in the world. ‘You’re walking around in nature and it’s as if you’re on a treasure hunt!’, says Karlić.

Karlić Tartufi Facebook

The museum was established in an old Istrian house that was once home to one of the pioneers of truffle hunting; the Karlić family bought the place and had it refurbished to house the new museum.

The truffle-themed collection is displayed on two floors. The family-business story of the Karlićs is presented on the first floor, along with the history of truffle hunting in Croatia and the world. Many interesting facts about truffles are sprinkled throughout the exhibit; for example, did you know that the extremely expensive truffles we know and love once used to be called ‘stinky potatoes’? Istrian peasants first found truffles by chance and not knowing what they were, kept discarding them until they learned of their value.

The second floor of the museum offers an interactive experience that draws the visitor into the interesting world of truffles through auditory, visual and olfactory stimuli. Along with the sounds of the Motovun forest echoing through the room, there are also videos of interviews with old truffle hunters, full of anecdotes.

On the central table, displayed are the six most common truffles that can be found in Istria. The most intense, Karlić explains, is the white spring truffle whose scent is reminiscent of chocolate - and visitors get to breathe in the rich aroma as well.

Karlić Tartufi Facebook

Visitors to the museum have the rare opportunity to see the largest truffle in the world, weighing 1.31 kilograms, which is entered in the Guinness Book of Records. It was found by Giancarlo Zigante, the father of truffle hunting in Istria, who gave the museum a casting of the largest white truffle for their collection.

Even though it just opened, the museum has already drawn a lot of attention. It’s not unexpected, said Karlić, considering there are only five or six museums of this kind in the whole world. He also points out the museum isn’t solely dedicated to truffles, but to truffle hunting as a business activity and a tradition cherished in all of Istria.

The truffle museum can be visited free of charge until May 1st, 2022. Located at the address Paladini 14, it will remain open throughout the year, from 9 AM to 4 PM on workdays.

March the 1st, 2022 - We recently wrote about Croatian Sberbank clients lining up outside Sberbank in Split and Zagreb to withdraw their cash as countries across Europe and the rest of the world imposed harsh sanctions on Russia following its recent invasion of Ukraine. How safe are Croatian Sberbank savings in reality?

As Poslovni Dnevnik/Ana Blaskovic writes, the sense of general nervousness over sanctions imposed against Russian banks by many countries has resulted in the aforementioned queues in front of Sberbank's branches in both Zagreb and Split as Croatian Sberbank savings are withdrawn. The Croatian Deposit Insurance Agency says, however that ''there is no reason to panic, Croatian Sberbank savings are safe regardless of the war and the sanctions''.

“The deposit insurance system has been in place for more than twenty years now, there is no reason to panic about deposits in any bank. At the moment, Sberbank Croatia has slightly more than 69,952 clients, of which 69,858 clients are insured and protected,'' said the director of the Agency, Marija Hrebac. All deposits up to 100,000 euros have been secured, and DAB currently has over 5.6 billion kuna at its disposal.

More about that can be read by clicking here.

The Croatian National Bank (CNB/HNB) has stated that the impact of the sanctions imposed against Russia following the invasion of Ukraine is divided.

"Given the first initial insight into European sanctions, Sberbank Croatia is not directly affected. However, there are also American sanctions, and under them are all institutions, including Sberbank Croatia,'' explained Vice Governor Michael Faulend, saying that the CNB will continue to look into all of the effects.

He said that the Croatian banking system was "very stable and well-capitalised and that it was important to emphasise that Sberbank occupies approximately two percent in this system. If something were to happen to the bank in an undesirable scenario, its impact on the financial system would not be so disruptive to overall relations,'' he assured those with Croatian Sberbank savings.

For more, check out our lifestyle section.

March the 1st, 2022 - European Union (EU) funds are up for grabs by Croatian technology companies in the current programming period of the bloc for the period between 2021 and 2027.

As Poslovni Dnevnik/Tajana Striga writes, the current programming period of the European Union, planned for the period from 2021 to 2027, is the most generous so far and makes over 25 billion euros available to the Republic of Croatia. By comparison, Croatia's annual gross domestic product was just over 55 billion euros last year. The size of the funds available is encouraging, but it still isn't enough to declare success.

Only the efficient and market development-oriented distribution of those funds can lay a sound foundation for the growth and development of the Croatian economy in the long run. The first step in this is to provide clear, accurate and above all adequate information to potential applicants so that they can identify tenders of interest as soon as possible and start preparing for them.

Among the first tenders announced for this year is the "Commercialisation of Innovation", which is planned for the first quarter of the year. The competition is aimed at small and medium-sized enterprises with mature innovation projects that are close to entering the market (TRL level 7 or higher). TRL (or Level of technological readiness) is a measurement system in which each level is characterised by a stage in the development of technology. There are 9 levels of technological readiness, and in order for a given project to be considered level 7 and eligible for funding under this tender, it's necessary to have a prototype whose performance has been tested out in an operational environment at the pre-commercial level.

In addition to the above, a clear plan for the production and commercialisation of products (TRL 8 and 9) is needed. In order for a product or service to be considered an innovation in the context of this tender, its functionalities when it comes to terms of application and characteristics must differ significantly from existing market solutions. In addition to the innovativeness of the project, the probability of commercial success will also be taken into account.

Although the details of the tender are still unknown, we've since learned from the National Recovery and Resilience Plan that the total budget for this tender stands at a massive 380 million kuna. The investment will be supported by at least 95 small and medium-sized enterprises during one public call/invitation and the amount of financing per project ranges from 760,000 kuna to a maximum of 5.32 million kuna.

Additional points will be achieved by those proposals that contribute to the green transition by reducing greenhouse gas emissions, increasing energy efficiency and stimulating the circular economy, offering blossoming Croatian technology companies a fighting chance. While the contribution to the green transition isn't explicitly prescribed by the tender, the project must meet the principle of "no significant harm", meaning that it must not have a negative impact on the six environmental objectives set within the EU Taxonomy Regulation.

Environmental objectives include climate change mitigation and adaptation, the sustainable use and protection of waters and marinas, pollution prevention and control, the transition to a circular economy, and the protection and restoration of biodiversity and ecosystems. This form of funding can be used to adapt a developed product or service and prepare for the launch of a product or service, which is perfect for many quickly developing Croatian technology companies. For example, eligible activities to adapt a developed product include the additional testing and incorporation of those test results into a final product, consulting services, capacity building, feasibility study audits, product design, and the protection of intellectual property rights.

Eligible activities for product launch preparation include the preparation or revision of a business plan and/or marketing plan, market research and testing, product testing with potential customers, production preparation and zero-batch investment, as well as operational marketing activities.

In addition to the aforementioned "Commercialisation of Innovation", the first quarter is expected to have yet another tender announced "Grants for start-ups" intended for innovative small and medium enterprises in high-tech sectors and knowledge-based sectors for TRL projects level 5-8, or those projects maturity beyond the concept-proof phase, but not yet ready for the market.

Companies that have been present on the market for a maximum of five years, with a somewhat defined team, and projects with a credible path to commercialisation can apply. The grant serves to support product development and increase existing production capacities, including upgrading, designing, verifying performance, market validation, testing, pilot line development, intellectual property protection and external services aimed at developing innovative ideas (product, process, service, etc) as well as training on the

Funded activities may also include part of the cost of accessing global business networks/clusters, which also involves the adopting of new marketing tools and accessing new markets. Eligible costs include the purchase of equipment, materials, staff recruitment and outsourcing. The total budget for this tender is planned in the amount of 141.7 million kuna, and the investment will support up to 141 small and medium-sized Croatian companies with individual grants of up to 1 million kuna.

In general, the focus of policies and measures of this EU programming period is the pursuit of systematic integration of sustainable development and green and digital transformation of the economy, which is something most Croatian technology companies also place a focus on, be it directly or otherwise. Thus, in the second quarter of the year we can expect the tender called "Digitisation Vouchers" with a maximum grant of 150,000 kuna, as well as the tender called "Digitisation Grants" with a maximum grant of 750,000 kuna on offer.

During the year, the announcement of the tender "Support to companies for the transition to energy and resource efficient economy" with a maximum amount of support of 7.5 million kuna is expected, and eligible applicants will be micro, small and medium-sized enterprises, and investments will be directed to energy-intensive industries.

In addition to all of the above, in the second half of the year, we can expect the announcement of the tender "Strengthening sustainability and encouraging the green and digital transition of enterprises in the tourism sector." Eligible applicants for this tender will be micro, small, medium and large companies engaged in the field of tourism and hospitality, and the primary focus will be on investing in less developed tourist areas of Croatia.

In the potential lack of pre-tender public consultation, the timeframe for preparing extensive draft documentation is relatively short. The very serious preparation of projects that maximises the probability of success in the tender takes months and requires a significant amount of human resources. At the same time, despite the significant increase in the amount of available funds, the level of competition among interested applicants has increased, as more and more companies are turning to this form of financing.

On top of that, significant interest in grants can be expected from young and innovative companies, such as Croatian technology companies, given the fact that traditional banking financing is often not a realistic option for them, while alternative sources of financing in Croatia are still at negligible levels.

For more, check out our dedicated business section.

March the 1st, 2022 - One huge Iskra investment, made by the well known Sibenik-based company, has had to be halted in the wake of the Russian invasion of Ukraine which occurred just several days ago.

As Poslovni Dnevnik/Suzana Varosanec writes, the current outbreak of war in Ukraine following an unjustified Russian invasion has currently halted activities on a project that is vital to Iskra Brodogradiliste 1's largest strategic investment in Sibenik.

Uncertainty loomed over the construction of a floating dock for the overhaul of a 5,000-tonne, 120-metre-long ship, contracted back in November last year with Ukraine's well known Pallada shipyard in Kherson. However, the solidarity of the local people of Sibenik is being shown in action. According to the claims of the director of that Sibenik shipyard, Rok Vuletic, the work in the Ukrainian shipyard, which specialises in the construction of docks, has been suspended due to the state of emergency, and people have been invited to stay at home.

"We're monitoring the development of the unfolding situation, and for now the only thing we're thinking about is that we hope that as few people as possible are suffering. We stand in solidarity with Ukrainian partners; namely, we in Croatia also have the experience of war, so we have full understanding for the situation in which they've found themselves,'' Vuletic pointed out, adding that they hope for an end to the ongoing war operations and stabilisation in the coming days.

Vuletic was in the inspection of the works on the dock about ten days ago, when, he says, everything was going smoothly and according to the dynamics and deadlines. The Iskra investment plan also envisages the modernisation of the company's facilities and infrastructure, the purchase of new equipment for shipbuilding, an increasing of capacities and the raising of energy efficiency.

For more, make sure to check out our business section.