LEGAL AND FOREIGN POLICY ASPECTS OF INVESTMENT CONTRACTS IN THE WESTERN BALKANS: EXPLORING ALTERNATIVES TO THE EUROPEAN UNION
The changing geopolitical landscape in Europe has numerous implications for the Western Balkan countries. The inability of Western Balkan countries to attract foreign direct investment from the European Union (EU), their primary economic partners, drives political leaders to seek alternatives, such as Russia and China. On the other hand, Russia and China are looking for ways to increase their influence in the region and challenge the dominance of Western countries, with investments serving as a key tool to that end. However, investments entail unavoidable legal consequences, such as a lack of transparency, allegations of corruption, and avoidance of local courts. Many investments either fail or are marred with doubts about their legality, and some are entangled in legal disputes. The most significant implication is the influence of these investments on countries with foreign policy affiliations and on their progress toward EU integration. The article employs legal and contextual content analysis, as well as case studies, to investigate the legal and political implications of investment contracts originating from Russia and China in countries of the Western Balkans, primarily Bosnia and Herzegovina (BiH). BiH, as a country with a complex legal and constitutional system and fragile peace, is in dire need of reforms, primarily those required for EU accession. Therefore, policies that reduce focus on EU integration may generate unintended consequences for reforming trajectories in the Western Balkans.