The Government of Republika Srpska has decided to enter negotiations with Comsar Energy Group Limited, a Nicosia-based company, Cyprus, owned by Russian businessman Rašid Sardarov, to acquire a co-ownership stake in the company that holds concession agreements for energy projects in this entity.
The company in question, Comsar Energy Republika Srpska (CERS), was established in July 2011 as a joint venture between Sardarov’s Cyprus-based company and the Subsidiary Company Rudnik i termoelektrana Ugljevik (RITE) a.d. Ugljevik, which operates under the Mixed Holding Elektroprivreda Republike Srpske.
According to an official statement, negotiations for the purchase will be led by GAS-RES, a government-owned company specialising in gas projects based in Banja Luka, and the decision to proceed with this was made on January 24, 2025, during a special session of the Republika Srpska Government.
The decision was explained by the strategic importance of CERS, which oversees key energy activities critical to the functioning of Republika Srpska’s energy system, including coal exploitation. As RITE Ugljevik has exhausted its coal reserves, this acquisition would provide access to additional supplies, ensuring uninterrupted operations.
The government has not disclosed the amount it plans to pay for the stake in CERS. According to the latest extract from the Business Entities Register, the registered capital of CERS is BAM 72.5 million, with the Cyprus-based company holding a 98.4% ownership stake, while RITE Ugljevik owns the remaining 1.6%.
The company was granted a concession in 2012 to build the Mrsovo hydropower plant on the Lim River and, in 2013, received a concession for coal exploitation at the Ugljevik Istok 2 site, as well as for the construction and operation of a thermal power plant in Ugljevik.
The Centre for Investigative Journalism (CIN) reported ten years ago that the concessions were awarded to Sardarov before public calls for bids were officially announced, with those calls being conducted later on. These concession awards were presented as successful energy projects within this BiH entity.
In 2014, CERS was granted a concession for coal exploitation at the Delići and Peljave-Tobut sites, and in 2016, for limestone extraction at the Baljak site in Ugljevik.
Despite the passage of time, CERS has made little progress in advancing its projects. In the meantime, RITE Ugljevik has exhausted its coal reserves for electricity generation, and in mid-2023, the government approved transferring the concession for the Mrsovo hydropower plant project from COMSAR to Elektroprivreda RS. The financial details of the transaction have not been disclosed.
