AGP Executive Report

Defense Industry Kickoff: Kosovo has started building its first ammunition factory in Gjakova after land expropriation was finalized, with initial output of 5.56mm and 7.62mm rounds and plans to expand into drones; Kurti says the site covers 19 hectares and that more than €1bn in defense investment is earmarked over the next four years. Energy & Trade Routes: The US is backing new gas projects across the Western Balkans—LNG terminals, pipelines and gas power—aimed at reducing reliance on Russian supply, including plans that could link to Kosovo. Business & Media Accountability: A defamation lawsuit by businessman Blerim Devolli against BIRN Kosovo over a solar-energy investigation was dismissed after he failed to appear in court. Inflation Watch: Kosovo’s annual inflation hit 7.5% in April, driven mainly by transport and energy-related costs. Culture Spotlight: At Cannes Critics’ Week, Kosovar director Blerta Basholli’s “Dua” premiered, bringing a personal lens to life in Kosovo during the 1990s.

US–Western Balkans Energy Push: The US is backing new gas projects across the region—LNG terminals, pipelines and gas power—explicitly to cut reliance on Russian supply, with plans spanning Albania, Bosnia, North Macedonia, Montenegro, Kosovo and Serbia. Kosovo Inflation Watch: Kosovo’s annual inflation hit 7.5% in April, driven mainly by transport (+16.1%) and energy-linked costs, with monthly prices up 1.1%. Energy Governance in Focus: Kosovo remains in the wider Energy Community push toward EU-style market coupling, while the region debates how fast infrastructure and rules can catch up with crisis pressures. Local Business & Media: A defamation case by businessman Blerim Devolli against BIRN Kosovo over a solar investigation was dismissed after he failed to appear in court. Security Context: Albania, Croatia and Kosovo are planning joint military drills, with defense-industry cooperation on the agenda.

UAE AI Push: Sheikh Mohammed bin Rashid says the UAE has launched a national “Agentic AI” programme, aiming to roll agentic tools into 50% of government services and train 80,000 employees, with a healthcare AI policy also approved. Regional Diplomacy: Serbia’s Vucic met Uzbekistan’s Mirziyoyev in Baku, stressing cooperation in energy, infrastructure, digitalisation and transport corridors. Kosovo Business & Media: In Prishtina, businessman Blerim Devolli’s defamation case against BIRN Kosovo over the “Unclean energy” solar investigation was dismissed after he failed to attend court. Kosovo Economy: Kosovo’s inflation accelerated to 7.5% y/y in April, driven mainly by transport (+16.1%) and energy-related costs. Energy Security Talk: Western Balkan energy ministers reiterated EU alignment and renewables as the route to energy security amid the wider crisis. EU/Foreign Policy: Israel approved “financial incentives” for countries to move embassies to Jerusalem; Kosovo is listed among those already based there.

EU Politics: Manfred Weber’s “firewall” against far-right cooperation in the European Parliament is showing cracks, with a growing “content-based” EPP wing eyeing ties with Patriots and AfD—raising stakes for next year’s national elections. Kosovo Business & Media: A Kosovo businessman’s defamation case against BIRN over a solar-energy investigation was dismissed after he failed to attend court, after the probe alleged shell companies hid ownership to benefit from incentives. Energy & Inflation: Kosovo inflation hit 7.5% y/y in April, driven mainly by transport and energy-related costs. Regional Security: Albania, Croatia and Kosovo plan joint military drills, while Kosovo is also among the signatories backing a Hormuz shipping-support mission. Defense Industry Context: Western Balkan energy ministers stress EU alignment and renewables as supply routes shift, even as fuel-price pressure reshapes border consumption.

Courtroom Outcome: Kosovo businessman Blerim Devolli’s defamation case against BIRN Kosovo and RTK over the 2020 solar-energy investigation was dismissed after he and his lawyers failed to attend the hearing, with the dispute tied to claims about shell companies and hidden ownership behind incentive tariffs. Energy Security Talk: Western Balkan energy ministers kept pushing EU alignment and renewables as the region navigates war-driven supply-chain shocks, while border fuel demand is rising where prices are lowest. Inflation Pressure: Kosovo’s annual inflation hit 7.5% in April, led by transport (+16.1%) and energy-linked costs, with housing and utilities also jumping. Regional Power Moves: Kosovo is among signatories backing a UK–France-led Hormuz shipping mission, while Serbia and NATO held their first joint drills—an ongoing signal that security cooperation is shifting fast. Industry Pipeline: A new M&A origination mandate targets a 722 MW renewable portfolio including Kosovo solar projects.

Defamation Case Ends: Kosovo businessman Blerim Devolli’s lawsuit against BIRN Kosovo and RTK over the 2020 solar-energy investigation was dismissed after he and his lawyers failed to attend court, with the underlying probe alleging shell companies linked to Devolli used incentive tariffs while hiding the real owner. Energy Security Push: Western Balkan energy ministers again stressed EU alignment and renewables as the region navigates a deeper energy crisis and war-driven supply-chain shocks. Inflation Watch: Kosovo’s annual inflation hit 7.5% in April, led by transport (+16.1%) and energy-related costs, while prices also rose in housing, food, and services. Renewables Dealmaking: MergersCorp was appointed origination partner for a 722 MW renewable pipeline that includes Kosovo solar projects (Dielli PV 150 MWp and Zllakuqan PV 100 MWp). Regional Military Signals: Albania, Croatia and Kosovo plan joint drills, while Serbia and NATO held their first-ever joint exercise—more training than escalation, officials say.

Courtroom Fallout: Kosovo businessman Blerim Devolli’s defamation case against BIRN Kosovo and RTK over the 2020 solar investigation was dismissed after he and his lawyers failed to show up in Pristina, ending a long-running fight over claims that shell companies were used to benefit from energy incentives. Energy Security Talk: Western Balkan energy ministers again stressed EU alignment and renewables as the region faces a deeper supply-chain shake-up from wars and price pressure. Inflation Watch: Kosovo’s annual inflation hit 7.5% in April, with transport and energy-related costs driving the jump. Defense Drills & Industry: Kosovo is set to join regional military exercises with Albania and Croatia, while Slovakia pushes NATO ammo production capacity—an arms-industry theme that keeps echoing across the region. Trade Shift Context: A new global snapshot shows China overtaking the U.S. as the top goods partner for most countries by 2025, underscoring the wider backdrop for Kosovo’s trade and investment choices.

Media & Accountability: Kosovo businessman Blerim Devolli’s defamation lawsuit against BIRN Kosovo and RTK over the 2020 solar investigation was dismissed after he and his lawyers failed to show up in Pristina court. The underlying probe alleged shell companies linked to Devolli were used to benefit from solar incentive tariffs while masking the real owner. Energy Security: Western Balkan energy ministers stressed EU alignment and renewables as the region navigates a deepening energy crisis and shifting supply routes. Defense & Industry: Albania, Croatia and Kosovo are planning joint military drills, with cooperation also aimed at defense-industry training. Inflation Watch: Kosovo’s annual inflation hit 7.5% in April, driven mainly by transport (+16.1%) and energy-related costs, with prices rising 1.1% month-on-month. Renewables Pipeline: MergersCorp was appointed origination partner for a 722 MW renewable portfolio that includes Kosovo solar projects (Dielli PV 150 MWp and Zllakuqan PV 100 MWp).

Courtroom Pressure on Investigations: Kosovo businessman Blerim Devolli’s defamation case against BIRN Kosovo over the 2020 solar probe (“Unclean energy”) was dismissed after he and his lawyers failed to show up in Pristina, leaving the investigation’s shell-company claims intact in the public record. Defense Industry & Regional Drills: Albania, Croatia and Kosovo are planning joint military drills, with officials framing Serbia-NATO exercises as more of a media issue than a security threat, while NATO and Serbia also ran their first-ever joint exercise this week. Inflation Watch: Kosovo’s annual inflation hit 7.5% in April, driven mainly by transport (+16.1%) and energy-linked costs, with monthly prices up 1.1%. Energy Market Momentum: Montenegro is moving toward Energy Community market coupling, with compliance verification expected from the EU after Serbia’s May 16 timeline—an important signal for the wider region’s grid integration. Business Dealmaking: MergersCorp was appointed origination partner for a 722 MW renewable pipeline that includes Kosovo solar projects.

NATO Tension, U.S. Pressure: The biggest signal this week is the U.S. plan to cut at least 5,000 troops in Germany, feeding a broader debate about Europe’s “one-way” reliance on American security as leaders push back on new U.S. demands tied to the Strait of Hormuz. Regional Security Drills: Serbia and NATO launched their first-ever joint exercise in Bujanovac with about 600 troops, framed as peace-support training while Serbia repeats its non-alignment line. Defense Industry Push: Slovakia is pitching itself as a NATO ammunition powerhouse, citing capacity limits and the need to strengthen Europe’s defense “pillar.” Kosovo Inflation: Kosovo’s annual inflation hit 7.5% in April, driven mainly by transport (+16.1%) and energy-linked costs. Energy Investment: A deal-focused report highlights a 722 MW renewable pipeline with Kosovo projects included (Dielli PV 150 MWp, Zllakuqan PV 100 MWp). AI & Fraud Watch: A Kosovo-born researcher warns criminals adopt AI faster than law enforcement, raising the stakes for cybercrime prevention.

Defense & Tech: The U.S. Air Force is sending a B-1B Lancer back to the fleet about 3.5 months early after “backbone” structural repair at NIAR, a push that’s banking on digital engineering to speed up legacy aircraft maintenance. Regional Security: Serbia and NATO kicked off their first-ever joint exercise in the Bujanovac region with ~600 troops, running two weeks of peace-support drills without live ammunition—while Serbia again stressed “military neutrality.” Defense Industry: Slovakia is positioning itself as a major NATO ammunition producer, citing defense and dual-use investment and warning that industry capacity—not just budgets—is the bottleneck. Kosovo Economy: Kosovo inflation hit 7.5% year-on-year in April, driven most by transport (+16.1%) and energy-related costs, with monthly prices up 1.1%. Energy Market: Montenegro is moving toward EU electricity market coupling, with compliance verification expected by end-June, and Kosovo remains in the same regional coupling push.

Inflation Watch: Kosovo’s annual inflation hit 7.5% in April, with transport (+16.1%) and housing/energy fuels (+15.2%) driving the jump, while prices also rose in restaurants, food, health services and personal care—signaling cost pressure is still energy-linked. Energy & Grid Integration: Montenegro is pushing for EU/Energy Community market coupling verification, aiming for a compliance opinion by end-June and a possible start of local implementation in 2028—an important regional electricity-market milestone that also matters for Kosovo’s neighbors. Renewables Pipeline: MergersCorp was appointed origination partner for WE ENERGO’s 722 MW renewable portfolio across South-Eastern Europe, including Kosovo’s Dielli (150 MWp) and Zllakuqan (100 MWp) solar farms. Security & Industry Context: Slovakia says it’s ramping ammunition and dual-use capacity to meet NATO needs—another reminder that defense spending is reshaping industrial priorities across the region. AI & Crime: A new interview highlights how criminals adopt AI faster than law enforcement, raising the stakes for Kosovo’s digital security agenda.

Inflation Watch: Kosovo’s annual inflation jumped to 7.5% in April, with prices up 1.1% month-on-month—and the pressure points are clear: transport (+16.1% y/y) and housing/energy fuels (+15.2% y/y) are driving most of the rise. Aviation Risk: Europe’s airlines are bracing for post-summer cost shocks, with demand proving resilient but uncertainty tied to the wider Iran fallout. Security & Tech: A new spotlight on AI crime argues criminals adopt tools faster than law enforcement, raising the stakes for Kosovo’s cyber-fraud defenses. Energy Integration: Market coupling momentum continues across the region—Montenegro is pushing for EU verification, and Kosovo remains in the same coupling pipeline. Culture & Film: “Dua” lands as a war-shadowed coming-of-age drama, while regional business news keeps flowing, including a renewable-energy deal pipeline spanning Kosovo.

Energy Market Integration: Montenegro is expecting the European Commission to clear electricity market coupling compliance by end-June, after the Energy Community Secretariat started its verification on March 3—potentially paving the way for market coupling implementation in early 2028. Renewables & Investment Pipeline: MergersCorp has been appointed strategic deal origination partner for WE ENERGO’s 722 MW renewable portfolio, with Kosovo projects including the Dielli PV (150 MWp) and Zllakuqan PV (100 MWp). Kosovo Energy Security: The US says Kosovo should be plugged into new regional energy corridors to modernize its system and connect it to wider infrastructure, as Washington pushes LNG and diversification to cut Russian dependence. Local Business & Community: In the Bronx, the Gjergj Kastrioti Skenderbeg Street Fair highlighted Albanian heritage through local trade and culture—an upbeat reminder of diaspora-driven economic ties. Corporate Watch: Titan SA reported strong 1Q26 results (sales +4.7% to €636m; EBITDA +16% to €138m) and a proposed €1.10/share dividend.

Renewables Dealmaking: MergersCorp has been appointed strategic deal origination partner for WE ENERGO’s 722 MW renewable pipeline across South-Eastern Europe, with Kosovo flagged via the Dielli PV Farm (150 MWp) and Zllakuqan PV Farm (100 MWp). US Energy Push for Kosovo: Washington’s energy envoy Joshua Volz says Kosovo must be urgently modernized and linked to regional energy corridors, aiming to connect the country to wider infrastructure and reduce dependence on Russian supplies. Grid & Exports Watch: Albania’s hydropower surge lifted electricity production ~70% year-on-year and boosted exports, including to Kosova—good for trade, but raising grid stability and coordination concerns as flows change. Regional Politics & Security: Serbia’s sanctioned-linked quarry permits near a Montenegro motorway route underscore how state-backed business networks keep operating despite Western sanctions. EU Enlargement Signal: EU enlargement commissioner Marta Kos says all Ukraine accession negotiation clusters should be opened quickly—after Orbán’s exit removed the loudest veto voice.

Energy Diplomacy: The US is pushing to link Kosovo into new regional energy corridors, with envoy Joshua Volz saying Kosovo needs urgent grid modernization and that planned gas routes across Southeast Europe could eventually connect it to wider infrastructure—part of a broader effort to cut dependence on Russian supplies. Power Sector Leadership: Kosovo Energy Corp (KEK) has named Gramos Hashani as permanent CEO after a public, competitive selection process; he previously served as interim CEO and brings finance and energy-transition experience. Regulatory/Legal Watch: A US appeals court ruling overturned broad injunctions that had blocked the suspension or termination of dozens of environmental and agricultural grants, a reminder that administrative procedure battles can quickly reshape funding flows. Business Signals: Titan SA reported a strong Q1 with sales up 4.7% and EBITDA up 16%, plus a proposed dividend—useful context for regional industrial appetite.