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Is the mystery buyer for a stake in Croatia’s largest conglomerate a front for Russian banks?

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While the region is being gripped with World Cup fever, a growing business scandal in Croatia is passing mostly under the radar. It all started after Russia was placed under international sanctions due to its attack on Ukraine. Croatia's top food manufacturer and retailer Fortenova Group is the successor of the now-bankrupt Agrokor. Its debt to Russia's Sberbank turned into equity after the collapse, making Sberbank the biggest shareholder in Fortenova. But following the EU sanctions, Sberbank sought to sell its stake to a mysterious buyer. The case shook the country's political scene when an investor from the United Arab Emirates announced a deal to buy out Sberbank's stake in Fortenova. While Sberbank has confirmed the sale, Fortenova said it hasn't been officially notified. Croatian authorities say the deal violates EU sanctions, and have called on the the European Commission to sanction two local businessmen. It's quite a complicated story, but Veljko Skenderija will explain it better as he reports from Zagreb.

Across The Balkans, hosted by Nafisa Latic, is TRT World’s programme that focuses specifically on the issues and fault lines shaping Southeast Europe today.

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Bankscandal, Croatia, Russia
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