Serbia, Hungary deepen defence, energy ties

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When Croatia, Albania and Kosovo recently formed a new military alliance, Serbia and Hungary followed suit, reshaping the security situation in South East Europe.

Serbian Defence Minister Bratislav Gasic and Hungarian Defence Minister Kristof Szalay-Bobrovniczky earlier this month signed a bilateral military cooperation agreement in the Serbian capital of Belgrade. Soon after Republika Srpska, the Serb entity within Bosnia and Herzegovina, announced its intention to join the alliance.

The agreement sets out 79 joint activities, including helicopter drills, cybersecurity collaboration, and coordinated military training programmes.

Serbian President Aleksandar Vucic said at the signing ceremony that the pact aimed to establish “the closest strategic relations in the field of defence” and raised the possibility of a future military alliance. However, Serbian military expert Aleksandar Radic told local media that the deal only comprises military cooperation projects agreed in a 2023 framework agreement.

Albania, Croatia, Kosovo form military alliance

Vucic framed the deal as a response to what he called rising regional threats, citing the 18 March declaration of trilateral defence cooperation between Albania, Croatia and Kosovo, signed in the Albanian capital of Tirana. Signed within the framework of the NATO Strategic Concept and EU security policy, the latter agreement includes a more cooperation between the defence industries and military training and exercises.

Although Croatian Prime Minister Andrej Plenkovic said the cooperation pact is “not hostile in nature”, Vucic described the agreement as “a direct threat to peace and stability” in the Balkans.

Croatian Defence Minister Ivan Anusic said “the times of Croatia asking Belgrade what it was allowed to do and how it had to act are over”, while the Serbian Foreign Ministry called it “particularly worrying” that the alliance was formed without consultation with it.

Analysts said while the Hungary-Serbia pact represents a significant step in military cooperation, it does not constitute a formal alliance. Hungary remains bound by NATO obligations, while Serbia continues to resist joining the alliance. Regardless, the agreement signals tightening defence links between two of the most Russia-friendly governments in Central and Eastern Europe (CEE).

The defence pact expands years of deepening political and economic cooperation between Hungary and Serbia under Hungarian Prime Minister Viktor Orban and Vucic. The two leaders have developed close ties across energy, infrastructure and migration policy.

Szalay-Bobrovniczky described the scale of cooperation as “unprecedented”, as regional alignments shift in the Western Balkans, adding that Hungary would support the modernisation of Serbia’s armed forces.

Hungary-Serbia cross-border oil pipeline gains momentum

The day after the defence pact was signed, Hungarian Foreign Minister Peter Szijjarto confirmed that Hungary and Serbia are moving ahead with a long-planned cross-border oil pipeline aimed at boosting regional energy security and reducing Serbia’s reliance on crude imports via Croatia.

Szijjarto announced progress on the project during a 2 April visit to Belgrade, where he met with Serbian Energy Minister Dubravka Dedovic Handanovic. The new pipeline will connect Hungary’s Danube refinery in Szazhalombatta, central Hungary, with refineries in Novi Sad and Pancevo, north Serbia.

Szijjarto said the line would have the capacity to transport 4-5mn tonnes of crude oil annually, fully meeting Serbia’s import needs. Construction is expected to begin in late 2025 or early 2026, with operations starting by 2028.

The Hungarian section of the pipeline will span 190km and cost an estimated HUF 130bn (EUR 324mn). MOL, Hungary’s state-backed energy group, has completed a feasibility study and received government approval for the project. The Serbian stretch will be 113km long and cost around EUR 150mn.

The project follows a 2022 bilateral agreement to develop an alternative supply route for Serbia, which currently imports crude primarily via the JANAF pipeline through Croatia. The new route would enable Serbia to tap into Hungary’s connection to the Druzhba pipeline.