According to Serbian Constitution, country’s supreme legal act, and the Platform unanimously adopted by the Assembly, all the assets in Kosovo are belongings of the State of Serbia. Furthermore, Charter of the United Nations, Resolution 1244 and Helsinki Final Act guarantee territorial integrity and sovereignty of Serbia in Kosovo-Metohija, and 1999 Regulation gave to UNMIK Administration the temporary right to manage the assets of our country in Kosovo-Metohija. “Serbian Railways” fully support these legal acts and in that manner we treat all our possessions in Kosovo-Metohija. All Serbian Railways’ property in Kosovo and Metohija, in accordance with these acts, represents the property of Serbia on this territory, - stated Drago Tadic, Coordinator for Kosovo-Metohija at "Serbian Railways", regarding the proposed

act on Kosovo status settlement, brought to Belgrade by Marti Ahtisaari.

Serbian Railways’ Coordinator for Kosovo, Drago Tadic specified that the value of railway property in Kosovo-Metohija is approximately 206,6 million Euros, which is 7,81 percent from the total value of basic railway means.

- To be precise, this is an accountancy value of our infrastructure and rolling stock in Kosovo-Metohija, recorded on January 1st 2006, while the actual market value is certainly higher, said Tadic and notified that UNMIK Railways in Kosovo organize the traffic on the infrastructure owned by Serbian Railways, and rolling stock, which is 99 percent in the possession of our enterprise.

Eight percents of railway property located in Kosovo and Metohija

As Mr. Tadic said, on the territory of Kosovo "Serbian Railways" own about 330 kilometers of tracks, 33 railway stations, and the rolling stock provided in the period between 1983 and 1990 – 19 diesel locomotives, 15 diesel trains, 570 freight and 45 passenger cars, and an auxiliary train set with modern "Lukas" equipment. Capital overhaul has been preformed on certain sections of the lines, and numerous stations have been reconstructed during the 90’s.

- Kosovo Polje Railway Station, set with the most current equipment was opened in 1983. Within the station there is a central control point with modern telecommunication network, an engine shed with three huts and all necessary locomotive maintenance plants, workshop equipped with an under floor tyre lathe, heating plants, and head office as well. We also have heating plants in Pec and Prizren, as well as the telecommunication equipment and track tackle along the entire territory of Kosovo and Metohija, - stressed Tadic.

However, there are no precise figures of direct damage caused to Serbian Railways due to the loss of transport incomes in Kosovo, during the past seven years, but it could certainly be shown in hundreds of millions Euros.

Failed privatization

Further problems for the railways, and for Serbia as well, emerged when on July 21st 2005, the Board of Kosovo Trust Agency made a decision to transform UNMIK Railways into "Kosovo Railways – Holding", a company which should have taken over the entire property of Serbian Railways and railway traffic in Kosmet as well, and all together announced the privatization of this enterprise. At the same time, UNMIK Railways commenced intensive activities, trying to enter international railway organizations, like CER, UIC and the International Committee of Railway Transport. These activities were followed by the financial assistance of European Agency for Reconstruction and other UNMIK branches, having the status of donators. Serbian authorities estimated that a decision like that represents the beginning of incorporation of UNMIK Railways and other public enterprises in Kosmet into certain international organizations.

- Decision of Kosovo Trust Agency Board to create so-called "Kosovo Railways" was in fact one-sided cancellation of the temporary agreement on railway transport organization, and further, after the UNMIK Railways, as a temporary authority of United Nations, have formally been canceled, the entire mutual regulation has been questioned. "Serbian Railways", as well as our country, do not recognize so-called "Kosovo Railways", still considering UNMIK Railways as the only partner, stressed Tadic.

International recognition obstructed

According to his words, in the last two years "Serbian Railways" leaded extremely good diplomatic activities, getting maximum support from Serbian Government, Ministry of Capital Investment and Coordination Center for Kosovo-Metohija, all with the aim to impede international recognition of so-called "Kosovo Railways". And they succeeded!

- Right after decision on the foundation of "Kosovo Railways" has been made, management of “Serbian Railways”, leaded by Director General Milanko Sarancic, and with the full support of all state authorities, address to UNMIK Railways, emphasizing that they would never sign nor approve a contract opposing interests of Serbian railways and the State of Serbia. Cooperating with UNMIK Railways, "Serbian Railways" refused to take into consideration any act containing the name of "Kosovo Railways". Moreover, all through the negotiations with the representatives of international railway organizations, institutions and authorities, we insisted on absence of the representatives of Kosovo Railway Company, since we do not take them as a legitimate business partner of Serbian Railways. So far our railway diplomacy was very successful, since all the attempts of Kosovo railways to enter international railway organizations failed. Still, intensive international negotiations to prevent our interests are yet to come, explains Tadic.

Traveling from Lesak to Zvecan by train

Following the question about current strategic tasks, interests and goals of Serbian Railways in Kosovo and Metohija, Tadic emphasized that the first task was to link railway service in southern part of the Province, between the stations Lesak and Zvecan, which would be organized by "Serbian Railways", as well as to displace station traffic change from Lesak to Zvecan. According to his words, the agreement has been reached in May 2005, with UNMIK and UNMIK Railways, but the conditions for implementation have not yet been created.

Furthermore, Tadic emphasizes that strategic goals of Serbian railways are: employment of 476 railway workers living in our Southern Province, impeding the reception of UNMIK Railways in international railway organizations, implementation of Kosovo Trust Agency Decision to found so-called "Kosovo Railways" and the transfer of contracts and estates of Serbia to this legally unrecognized company.

He stressed that, in the last three years, "Serbian Railways" Director General, Milanko Sarancic with the management met with the representatives of UNMIK Railways several times, in Belgrade and Kosovo. During the meetings, they often reached the agreement on realization of Serbian Railways’ requests. However, after Albanians have obstructed the agreements, international representatives came out for unprepared or unauthorized, while our requests have been considered as political most of the time. Common impression created during the negotiations was that both sides had one aim – to gain time, said Tadic.

Summarizing future steps of Serbian railways, aiming to protect the property and interest in Kosovo-Metohija, Tadic reminded of current activities of United Nations and entire international community, along with Serbia, on finding an adequate solution for the future status of Kosovo-Metohija, in line with UN Charter, Resolution 1244 and Helsinki Final Act.

- Therefore, I think that, with full international engagement of our management and with the support of the Government, we should wait for the solution of future Kosovo status, including also the solution of UNMIK Railways status. Thus we will avoid one-sided and imprudent technical decisions, in order not to prejudice political solutions, which rae under jurisdiction of international political organizations and Serbian authorities. Until then, "Serbian Railways" will try to protect their interests and possessions, and to provide for the employees in Kosovo better working and living conditions, achieving exclusively cooperation with UNMIK Railways, with maximum assistance of the State, - concluded Drago Tadic, Coordinator of "Serbian Railways" for Kosovo-Metohija.

STILL PAYING OFF OUR LOANS

Although they do not manage their own property in Kosovo and Metohija for seven years, since UNMIK has taken over the infrastructure and rolling stock, "Serbian Railways" are still paying off regularly debts to international financial organizations, as a result of loans approved during the 80’s to the former Railway Transport Organization Pristina.

- "Serbian Railways" are regularly paying off their obligations for World Bank loans, amounting altogether 33,2 million Dollars, as well as the other one to the Paris Club of 4,2 million Canadian Dollars. As far as it concerns "Eurofima", till the end of 2005 we paid off 1,6 million Swiss Franks. There are also about 200.000 Euros for participation and membership taxes for international organizations, as the International Union of Railways, Community of European Railways and others. The State of Serbia regularly pays off to international organizations all credit obligations of UNMIK Railways, as the legal successor of the former Railway Transport Organization Pristina, - emphasized Tadic.