ZAGREB, April 24, 2019 - Finance Minister Zdravko Marić told Croatian Radio that over the next few weeks the state will pay between 400 and 500 million kuna to cover the enforced guarantee for the Pula-based Uljanik shipyard, adding that the government would do everything so that the company that commissioned the construction of a dredger from Uljanik shipyard does not demand the repayment of all advance payments.

The Dredging and Maritime Management company, owned by the Jan De Nul group, is demanding the repayment of all advance payments for the construction of a dredger by Uljanik plus interest, with government collateral having been given for a part of the advance payments.

Asked whether there was hope for Uljanik and 3. Maj docks, given that the Belgian contractor was asking for its advance payment back and how much of a burden would the repayment be for the state budget, Marić said that the state was originally exposed towards the capital amount of Uljanik's loans in the amount of 4.3 billion kuna, and together with plus interest rates that amounts comes to 4.5 billion kuna.

"Most of it has been paid, some of it was paid in 2018 and the rest at the start of 2019, namely all together 3.1 billion kuna," Marić said adding that before the Belgian client's dredger there were other enforced guarantees so the state would need to pay between 400 and 500 million kuna over the next several weeks.

Asked to comment on Eurostat reports according which Croatia recorded a 0.2% government surplus in 2018, Marić said this was proof of the stability of public finances.

"The figures about Croatia released on Tuesday is another great recognition in international and domestic circles and the confirmation that public finances are stable, namely consolidated. This is the third year in a row that the public debt is going down and Croatia's consolidated gross debt was 74.6% of GDP," the minister said.

A hearing before the Commercial Court in Pazin which was expected to discuss preconditions for opening bankruptcy proceedings for the Uljanik shipyard was once again postponed on Wednesday and rescheduled for May 13.

Judge Ivan Dujić said the 60-day legal deadline for the postponed had expired, but that there were other legal grounds so he allowed another postponement. The judge said he would declare bankruptcy if Uljanik's accounts are not unblocked by May 13.

The proposal to launch bankruptcy proceedings at Uljanik was made in late January by the financial agency FINA, which said at the time that on January 21 the dock had overdue liabilities in the amount of 75.9 million kuna which it had not been able to pay for a period of more than 120 days. The Uljanik shipyard has 1,400 employees.

Uljanik said on Tuesday that the Dredging and Maritime Management company, owned by the Jan De Nul group, is demanding the repayment of all advance payments for the construction of a dredger by the Pula-based Uljanik shipyard plus interest, with government collateral having been given for a part of the advance payments.

Economy Minister Darko Horvat said on Tuesday that the negotiations with the company that commissioned the construction of a dredger from Uljanik were still under way and added that claims that the government would soon have to cover the enforced guarantee in the amount of half a billion kuna for that job were irresponsible and dangerous.

Horvat recalled that on 30 April and on 1 and 2 May, executives of the biggest Chinese shipbuilding company would tour the 3. Maj and Uljanik docks to see what can be done about their possible engagement or cooperation.

More news about Croatian shipbuilding industry can be found in the Business section.

ZAGREB, April 24, 2019 - Adriatic Union leader Boris Cerovac said on Tuesday that the hearing set for Wednesday at the Commercial Court in Pazin regarding the possible bankruptcy of the Uljanik Group had two options – either the judge will decide on bankruptcy or he will receive firm guarantees that a solution for Uljanik exists and will once again adjourn the hearing.

"There are two options on the cards – from the one that the judge will decide that conditions exist for bankruptcy, to the one that it has in the meantime received firm guarantees from someone that a solution exists and that the state will indeed pay out overdue wages and that the hearing will once again be adjourned," Cerovac told Hina.

He underscored that it was high time the agony of the Pula-based dock were resolved, claiming that the recent visit by China's premier and a trade delegation and their possible interest in taking over the Uljanik Group is not a sufficient reason to adjourn the hearing.

The unionist commented on a press release from the Uljanik Group's management on Monday that the shipyard "remains to be a protected area," following the return of Uljanik's security guards along with additional security guards from another company, claiming that he is not familiar with what sort of terms and conditions Uljanik's management has offered to security services to go back to work.

According to Cerovac, Uljanik's management had called on the strike committee to exempt security guards from the strike that was launched on March 21 so that the dock would not be left unguarded. The management board on Friday requested the strike committee to organise themselves and place their own guards at the dock, which they refused to do.

After not being paid for months, 150 employees in legal, personnel and IT services left their work stations as did the security guards that were guarding the entry to the dock leaving the shipyard's property totally unguarded.

"After we received a promise from Uljanik's management that the situation would be resolved soon, we decided to go back to work. Of a total of 18 security guards, 14 have returned to work," the head of the workers' committee for Uljanik's IT system, Zoran Milinkovic told Hina.

A hearing that was scheduled for this past Friday at the Commercial Court in Pazin regarding the possible bankruptcy at the Uljanik dock was shifted to or Wednesday, April 24.

More shipbuilding news can be found in the Business section.

ZAGREB, April 23, 2019 - The Dredging and Maritime Management company, owned by the Jan De Nul group, is demanding the repayment of all advance payments for the construction of a dredger by the Pula-based Uljanik shipyard plus interest, with government collateral having been given for a part of the advance payments, the dock said on Tuesday.

On April 19 the client said that it would seek the repayment of its advance payments for the vessel that was to have been built by the shipyard, Uljanik said in a statement it made public via the Zagreb Stock Exchange.

"After months of negotiations between the client, Croatian state institutions and Uljanik, which were aimed at having the vessel completed at Uljanik instead of repaying the advance payments or transferring the vessel for completion to a foreign shipyard of the client's choice, the client has made a final decision to seek the repayment of all advance payments made, plus interest," the statement said.

The interested parties will continue to work on finding a solution to reduce the harm the latest developments are expected to cause to the state and the shipyard, the statement said.

More Uljanik news can be found in the Business section.

ZAGREB, April 22, 2019 - Istrian Democratic Party (IDS) leader on Sunday reacted to the Easter homily delivered by the Archbishop of Zagreb, saying that Cardinal Josip Bozanić had used the Easter holiday to issue "biased political messages" and calling on him to "refrain from political cheering" and to intercede for the workers at the Uljanik and 3. Maj shipyards.

In a statement, IDS president Boris Miletić expressed regret that Cardinal Bozanić had used Easter to issue "biased political messages and a cynical criticism of Istria County and Primorje-Gorski Kotar County, which he said represent 'the most developed parts of the country'."

"Instead of engaging in political campaigning, Cardinal Bozanić could have used his speech today to draw attention to the inhumane, callous and un-Christian policy of stalling which the government has persistently used against the Uljanik and 3. Maj workers," the IDS leader said in the statement.

He appealed to the Church authorities "to refrain from political cheering and discriminating against the two regions which they do not like for reasons best known to them, and to actively intercede for the shipyard workers and help end their months-long suffering."

In his homily, Cardinal Bozanić referred to the shipyard workers in Pula and Rijeka who "have been coming to work for months without being paid," noting that this was happening in a part of the country that was described as most developed.

"How is this possible? Politicians, both local and those at the highest level, are certainly aware of this. Problems that have been long kept under the carpet in the interest of power-wielders need to be dealt with, but it is the little man that gets hurt in such games and calculations," Bozanić said, urging those in charge not to lose sight of the unprotected little man in addressing difficult issues.

More news about Croatian shipyards can be found in the Business section.

ZAGREB, April 21, 2019 - After the Archbishop of Zagreb in his Easter homily called on the authorities to tackle the problem of shipyard workers who have not received their wages for months, Prime Minister Andrej Plenković told reporters that "additional efforts are being made in very demanding circumstances" to address this issue.

Speaking to the press after attending Easter Sunday Mass in the Zagreb cathedral, Plenković said that Archbishop Josip Bozanić's sermon was encouraging to public office holders.

Asked if he took the cardinal's message as a criticism, the prime minister said he thought the contrary. He said that last year the government had secured money for the Pula and Rijeka shipyard workers' wages and was now making "additional efforts in very demanding circumstances." He recalled that a delegation of a Chinese shipbuilding corporation was expected to visit the two docks soon.

Asked how he took Bozanić's sermon, Parliament Speaker Gordan Jandroković said that it was a complex sermon the gist of which was that "we should do good to each other and take care of those in need."

"The message concerning the shipyard means that obviously there is awareness that the situation is difficult and that account should be taken of the workers and those who have found themselves in a difficult situation through no fault of their own. We have certainly understood that message well and we will deal with that," Jandroković said.

More news about shipyards can be found in the Business section.

ZAGREB, April 19, 2019 - Unionists in the Uljanik shipyard said in Pula on Friday the situation was alarming and disastrous, and that the government was responsible due to its inaction.

"Recently... there has been less and less talk about Uljanik, where the situation is harder by the day. The situation has been alarming for a long time, but what has been happening to us over the past month is disastrous. Someone should be held accountable for this situation," unionist Boric Cerovac told the press, adding that "politicians are responsible, whether at local or national level, everyone should be called out."

He once again invited Prime Minister Andrej Plenković and his ministers to come to Uljanik and to the 3. Maj shipyard in Rijeka, and tell workers what they actually wanted regarding Uljanik and shipbuilding because "only they can resolve this."

"The government is toying with workers' fate, saying they are looking for rescue but doing nothing. They mention the Chinese, Norwegians, Africans, Americans, but there's no solution. With each new day, workers are in bigger problems because the wages aren't coming," Cerovac said.

They have been working without pay for eight months now and the delays of bankruptcy proceedings are only delaying the end of this agony, he added.

Cerovac said his Adriatic Union had been warning about the problems and the government's idleness, and that it demanded the payment of wages or interim financing.

"That hasn't happened and I don't know what else we unions can do after months of efforts, talks and the economy minister's promises that the wages will be paid... We can no longer believe the government and the minister? Evidently not."

Cerovac said the 150 workers of the Uljanik Group's security, accounting, legal and personnel departments today decided to leave the group, and that without them it could not function.

As for a bankruptcy hearing for the Uljanik dock at the Commercial Court in Pazin, he said: "These are spins to buy time, to do the European elections... There's no intention for something positive to happen. The majority was for bankruptcy if no other solution was found. The decision on bankruptcy is made by a judge. Everyone can say they want bankruptcy, but if the information comes from politicians, it won't happen."

Another unionist, Đino Šverko, said the "key of the rescue" is in Plenković's hands and that Uljanik needed interim financing for workers to survive. The government can agree with potential partners after that, he added.

Supervisory Board member Samir Hadžić said only the government was responsible for the current state of affairs and that its inaction was costing taxpayers one million kuna a day.

Economy Minister Darko Horvat said on Thursday that executives of the China Shipbuilding Industry Corporation would visit Uljanik Group on 30 April and 1 May to explore possibilities for cooperation and that after that they would hold meetings with the Croatia side, however, Horvat declined to speculate the outcome of the Chinese visit to Pula and Rijeka.

More Uljanik news can be found in the Business section.

ZAGREB, April 13, 2019 - Croatian Prime Minister Andrej Plenković said on Friday he had asked his Chinese counterpart Li Keqiang to see if a major Chinese shipbuilding company would be interested in becoming a partner to the ailing Croatian shipyards Uljanik and 3rd May and helping in their restructure.

"I have asked the Chinese premier, who in turn has asked his ministers, to invite a key Chinese shipbuilding company to visit Croatia, Uljanik and 3rd May and see if they would be interested in becoming a partner that would help in their restructure," Plenković told the RTL commercial television network.

The prime minister did not specify when that could happen, saying only that it would happen "very soon".

He recalled that the government had already paid 420 million euro worth of state guarantees, "which unfortunately went to banks for previously granted loans." "In the past year or so we have done all we could under the law," he added.

Plenković said he had taken advantage of Premier Li's visit to Croatia to explain to him the context of the domestic shipbuilding industry and the importance of the two shipyards which have been operating for over 160 years. "What they need is a serious consolidator who knows how to run these processes in accordance with the market requirements of 21st century shipbuilding."

Plenković also commented on the statement made by Serbian Prime Minister Ana Brnabić in Dubrovnik on Friday, when she said she was ready to make the first move and invite him to visit Serbia because "political frictions don't do anyone any good in the region."

"Next year Croatia takes over the EU presidency and in the process of preparations for that I will visit all our neighbours, certainly Belgrade, Sarajevo, Skopje, Pristina and Tirana. We want to be well prepared for a summit that will take place in May 2020," he said.

Plenković expressed his satisfaction with the Dubrovnik summit of Central and Eastern European countries and China, which ended on Friday. He said that the Chinese premier's visit was very successful and that it was very important for mutual relations and for the positioning of Croatia in Central Europe.

More news about the Uljanik shipyard can be found in the Business section.

From the construction of Pelješac bridge to planning to build a car factory in southern Dalmatia's Neretva valley, to displaying interest in potentially rescuing the enfeebled Croatian shipyards Uljanik and 3 Maj, the Chinese are no strangers to showcasing their investment interest in Croatia.

Croatia has earned itself a less than positive reputation among foreign investors, alright, let's not be so politially correct and say that Croatia is a burning hot mess in the eyes of foreign investors. ABC has come to mean ''Anything but Croatia'' in foreign investment circles, and many are simply bypassing the country entirely. That's not to talk about local, Croatian investors who have been dragged through the proverbial mud twice or even thrice the amount. Given the somewhat depressing statistics, just why are the Chinese suddenly so deeply interested in investing such huge sums of money in Croatia?

While many have welcomed the money-laden offers of the Chinese, others have remained cautiously optimistic, and some have made no qualms about being vocal in their dismay at the thought of the Chinese coming and ''taking over'' by investing heavily in Croatia's many pressing strategic projects. The motives that push the Chinese towards closer and closer ties with Croatia tend to end up as mere hearsay and solacious gossip in the comment sections of various portals, but what do the experts believe?

As Novac/Marina Karlovic Sabolic writes on the 12th of April, 2019, the Chinese are truly incredible people. They come to Croatia every ten years, and the Croats immediately forget about all of the Chinese "bofl" goods they've spent their lives purchasing and throwing away. They suddenly become blissfully unaware of the dreaded "Made in China" mark that everyone gets so sick to the back teeth of seeing plastered all over basically anything. Instead, their innermost desires display blurry images of an ailing Uljanik, of Tito's rotting memorial complex in Kumrovec, of Rijeka's port, and even football stadiums, Slobodna Dalmacija writes.

Does anybody bother to ask in this country what the Chinese will ask for in return, however? Entering into the dubious and somewhat unpredictable world of Croatian shipbuilding, constructing a much needed railway line and maybe rescuing a port in Rijeka all before dinner time will come with a price tag, and likely a hefty one. The situation when that bill inevitably arrives is one that tends to be what fills the militant online naysayers with fuel, and dread.

''Don't be afraid, China will not demand that the Communist Party be established in Croatia or that it rules the country,'' prof. Dr. Vlatko Cvrtila, one of the most prominent Croatian geopolitical experts, stated. He also added that in its long-term strategic plans, China really doesn't have any sort of idea of ​​introducing a single-party system in the countries in which it invests its money. Their interest, claims Cvrtila, is of quite another nature.

''The Chinese don't invest because they have a lot of money and they want to go around giving it out. There's no philanthropy in international relations. All they invest in is related to their global strategy of creating influence and linking the Eurasian world in a continental way. By investing in infrastructure, ports, roads and railways, they enable their goods to reach their customers more easily,'' says Cvrtila.

Such an approach, he points out, is legitimate for a country that has boasts such great economic potential at this time like China does. Their mega-project, the Silk Road, which would increase the possibility of land transport, aims to reduce overall dependence on maritime traffic restrictions.

Cvrtila notes the US administration's estimates and warnings that China will one day turn its massive economic influence into strategic power as well. This is something that United States, which is already competing with Russia, doesn't think well of. However, China is now quietly placing all of its cards on the economic side of the story.

''In order to maintain its economic growth, China must have a market. In infrastructure projects, they actually make the market more widespread. China can't stop, while it's riding the bike it needs to rotate the pedals. The Chinese are present everywhere where they can create prerequisites for the distribution of goods. In Greece, they're in the ports, in Montenegro, they're dealing with the construction of a motorway, in Croatia, they're building Pelješac bridge. This is a win win situation for everyone, because in the long run, any investment in infrastructure can improve a country's economic performance,'' says Cvrtila.

China has, therefore, created the 1 + 16 formet in Southeastern Europe where its usually large-scale investments help countries that otherwise don't have a lot of foreign investment.

''Europe has survived a difficult financial crisis and there is no "free finance" which would enter JI Europe. China's investment is actually beneficial for Europe, because along with China, the European Union has developed non-competitive but increasingly strategic economic relations, realising in time that they [the Chinese] can contribute to its economic growth,'' emphasises Cvrtila.

Croatia, according to him, is fortunate because it is strategically quite well positioned: it is closer to the heart of Europe than it is to Northern Europe. And, de facto, it is located at the intersection of the roads between the East and the West.

Unfortunately, Croatia hasn't used its geostrategic advantage yet. LNG terminal stands, as do the new train lines. It's also important to revitalise the Port of Rijeka so that Croatia can profit in the fast transport of goods to European consumers. We don't have our own investments, Europe has no capacity anymore, which is why the Croatian Government is seriously considering deals from China,'' concludes Cvrtila.

Therefore, there's no need for Croatia to be afraid of the Chinese, but rather actually use them for its own interests.

Make sure to follow our dedicated business page for more information on Chinese-Croatian relations, Chinese business plans in Croatia, and much, much more.

Click here for the original article by Marina Karlovic Sabolic for Novac/Jutarnji

As Poslovni Dnevnik writes on the 10th of April, 2019, Chinese interest continues to grow as the Republic of Croatia and China opened a new, ambitious chapter of economic and trade relations on Wednesday, deepening their relationship even more after talks between the two prime ministers who both considered the talks to be a "fruitful turnaround".

Relations between Zagreb and Beijing initially reached a higher level after the Chinese company China Road and Bridge Corporation was chosen as the much anticipated Pelješac bridge builder.

The two countries readily signed six agreements, which cover the segments of rail, agriculture, digital technology and tourism. Four more will be signed on Thursday and Friday down in Dubrovnik at the 16 + 1 summit.

"We have signed a memorandum on a much more serious, transparent and easier cooperation between companies, on the transfer of capital from China to Croatia, as well as a two-way transfer, and the possibility of capital from Croatia being invested in China. This opens up the possibility of trust and a much stronger and more serious transfer, investing and manufacturing, and we've been able to talk about other large-scale structuring projects, especially given the fact that a Chinese company is building Pelješac bridge,'' said Croatian Economy Minister Darko Horvat for RTL.

He also noted that at this point in time, Croatia has a bilateral economic exchange with China which is somewhere close to the level of a billion euros, in a much larger deficit on the Croatian side.

Horvat also confirmed that Chinese companies are offering to be the ones to construct the Rijeka-Zagreb line.

"This project has to happen, the Chinese side has shown its interest. Whether that is going to come in the shape of a long-term concession agreement or in another model... Minister [Oleg] Butković is engaged in very intensive negotiations [on that matter] at the moment,'' stated Horvat.

In conversation with RTL, Horvat also revealed that they now have a clear signal that there is interest from the Chinese side to invest in Croatia's burdened shipyards, Uljanik and 3 Maj, in Pula and Rijeka.

"The real conversations are just starting, and I'm sure we will have some concrete figures tomorrow,'' he added briefly.

When asked whether or not Chinese could end up becoming the strategic partner needed to finally save Uljanik, the economy minister simply said that nobody was trying to hide the fact that the Chinese had been called upon.

Make sure to follow our dedicated business and politics pages for more information on the blossoming China-Croatia relations, why some remain suspicious, why the European Commission has raised its eyebrows at the fact that a Chinese company is building a bridge funded primarily with EU money, and much more.

ZAGREB, April 4, 2019 - Unionists at the Uljanik dock on Thursday warned of the unbearable situation facing workers at that Pula-based shipyard who have been striking for 15 days yet there is no positive information from the management or the government, which has led them to send a fourth letter to Prime Minister Andrej Plenković and urge him to finally resolve the situation in the Uljanik Group.

The head of the strike committee, Boris Cerovac, confirmed for Hina that he had sent yet another letter to the prime minister.

"There are fewer and fewer workers at the dock and they are leaving Pula en masse, about twenty leaving the dock each day. I believe that the number would be even higher if Uljanik's personnel department did not work just two days a week. In any case, the situation is unbearable. There are a lot of contentious issues and questions. It is obvious that everyone has given up on us," Cerovac said.

Another shop steward, Đino Šverko, said it was unbelievable and sad that the government had made absolutely no mention of Uljanik at its meeting earlier in the day or discuss the agony of the dock's workers, underscoring that it was obvious that no-one was taking any notice of the workers anymore.

"We are tired of all this and of all the promises. They should tell us once and for all whether Uljanik will file for bankruptcy or be restructured. This time-buying isn't to anyone's benefit," Šverko told Hina, adding that it was no wonder that scores of Uljanik workers had recently sought psychiatric help, as could be seen on social networks.

He added that his union had approached the International Labour Organisation in Turin "because the case is in violation of all international conventions on workers' rights."

More news about Uljanik can be found in the Business section.