Bosnia’s Nova Željezara Zenica Faces Emergency Parliamentary Law to Prevent Bankruptcy

An emergency session of the Federation of Bosnia and Herzegovina’s Parliament was convened on 8 June to consider a special law that would place the steel producer Nova Željezara Zenica under extraordinary administration. The government argues the measure is of “special systemic importance” for the federation, aiming to safeguard jobs, preserve domestic industry and stabilise the wider economic system.

The company was recently bought by businessman Gordan Pavlović, who shortly after filed for bankruptcy and allegedly removed valuable assets from the plant despite having paid only a fraction of the purchase price. Workers’ unions have staged protests, and parliamentarians from several parties have voiced criticism, questioning the legality and potential impact of the proposed law on investors and the rights of the plant’s roughly 1,800 employees. Federal officials, including Premier Nermin Nikšić and Minister Vedran Lakić, are involved in the negotiations.

If passed, the law would introduce a court‑controlled mechanism to prevent an uncontrolled liquidation and could determine the future of the Zenica steel works, a strategic asset in the region.