Kathmandu— Bosnian Serbs have strengthened their ties with Israel amid growing tensions, with the opening of an Israeli commerce office in Banja Luka, the capital of Republika Srpska. The move comes as Israel faces international criticism for its actions in Gaza, while Republika Srpska's leader, Milorad Dodik, has expressed strong support for Israel. The office's opening is seen as part of a broader strategy to address Republika Srpska's financial problems and potentially increase tensions within Bosnia and Herzegovina.

Opening of the Israeli Commerce Office

The Israeli Chamber of Commerce opened an office in Banja Luka, the capital of Republika Srpska, last week. The move was described as a step to further strengthen ties between the two sides, with officials emphasizing the potential for investment cooperation. The office's president, Amir Gross Kabiri, is an Israeli businessman and industrialist who has become a prominent figure in Bosnia's economic and political life. During the opening ceremony, Israeli Ambassador Galit Peleg highlighted the potential for business connections, while Dodik emphasized the historical and political ties between the Serb and Jewish peoples.

Support for Israel and Criticism from Sarajevo

Milorad Dodik, the leader of Republika Srpska, has been a strong supporter of Israel since the start of the Gaza war in October 2023. He has expressed pro-Israeli views and positioned Republika Srpska as a key ally of Israel in the Balkans. In August 2025, Dodik stated that a state that does not exist in reality cannot be lawfully recognized, opposing the international recognition of Palestine. This support has raised concerns among the Sarajevo-based Federation of Bosnia and Herzegovina, which has faced pro-Palestine demonstrations during the Gaza conflict. The opening of the Israeli office in Banja Luka has been seen as a move to deepen economic and political ties, despite the ongoing tensions.

Economic and Political Implications

The opening of the Israeli office is seen as part of a broader strategy to address Republika Srpska's significant financial problems, including rising debt. Analyst Davor Gjenero suggested that such economic activities could be part of a strategy to alleviate financial issues. However, the move has also raised concerns about potential centrifugal processes and the unity of Bosnia and Herzegovina. Gjenero noted the connection between the policies of Dodik and Serbian President Aleksandar Vucic, describing it as a potentially dangerous development amid rising tensions. He warned that any activity by Republika Srpska without coordination with Sarajevo could pose a serious threat to the country's relations with the European Union, as it seeks membership.

The opening of the Israeli office in Banja Luka has deepened economic and political ties between Republika Srpska and Israel, raising concerns about the unity and sovereignty of Bosnia and Herzegovina. The next steps will depend on how these ties evolve and whether they lead to further tensions or cooperation within the country.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.