“We are close to opening the first factory of drones here in our country – very serious, of the highest global standard,” stated the President of Serbia, Aleksandar Vučić, on 7 March this year.
Vučić had previously said that Serbia would open the factory with a foreign partner, specifically from Israel, and that it could begin operations as early as April, though he did not disclose the company’s name.
BIRN and Haaretz reveal that the company in question is Elbit Systems, Israel’s largest military company, which has for years been criticised for its involvement in Israeli operations in Gaza and the West Bank.
Elbit will hold a 51 per cent stake in the drone factory, while the remaining 49 per cent will belong to the domestic company Yugoimport SDPR.
In a June 2025 report, the UN Special Rapporteur for the occupied Palestinian territories, Francesca Albanese, states that Elbit is among the companies profiting from the “ongoing genocide” in Gaza, where more than 70,000 Palestinians have been killed in Israeli military operations since the Hamas attacks in October 2023.
According to documents obtained by BIRN and Haaretz, as well as statements from two independent sources, the plan is to produce two types of drones – for short- and long-range missions.
Israel and Serbia already maintain developed cooperation in the field of armaments. The value of Serbia’s exports of ammunition and weapons to Israel has increased 42-fold since 2023, reaching €114 million by the end of last year, despite numerous appeals from United Nations experts to halt military sales to Israel.
Most of this export has been carried out via SDPR.
Vuk Vuksanović, a lecturer at the Department of War Studies at King’s College London, says Serbia’s motives include potential profit from drone sales, as well as access to the technology and expertise of one of the most advanced military companies. Israel, on the other hand, seeks to secure “a supply chain outside its own backyard, which is constantly in a conflict zone”.
Vuksanović notes that Serbia continues to balance geopolitically, but some partners are becoming more important – Israel in this case – because the authorities see it as a “shortcut to the White House”.
“The main priority of the ruling elite is to remain in power, and to achieve that, it is important not to come into conflict with the Americans, especially in the context of Trump’s recent moves on the global stage,” he told BIRN.
SDPR did not respond to journalists’ questions, while Elbit briefly replied: “No comment”.
Omnipresent killing machines
Documentation reviewed by BIRN shows that the planned Israeli-Serbian drone production facility is to be located in Šimanovci, about 30 kilometres west of Belgrade, in a building owned by Pink Media Group.
Following publication of the article, the company issued a request for a correction, denying these claims.
“The stated information is entirely inaccurate. Željko Mitrović and PINK MEDIA GROUP have no connection whatsoever with this project. They have not participated, nor are they participating, in any discussions, negotiations, agreements or arrangements related to the said drone factory. Furthermore, no legal entity associated with Mr Mitrović has conducted negotiations, concluded any arrangement, or offered, designated or leased any facility for the purposes of this project,” the denial submitted to BIRN states.
According to documents seen by BIRN and confirmed by two independent sources close to the defence industry, the plan includes producing two types of drones: a short-range, high-payload model with rotary wings, and a more advanced, faster long-range model capable of flying at altitudes exceeding six kilometres.
A source familiar with the agreement says the long-range drone is “more advanced” than Pegasus, a combat-reconnaissance drone already produced by Serbia.
“It has a higher flight ceiling and greater operational autonomy. The essence of the whole project is technology transfer, as our engineers will also work on it, and that drone is essentially the crown of the entire project,” the source said.
According to BIRN’s source, experts from Utva, an aircraft factory owned by SDPR, will also be involved.
Elbit has numerous lucrative contracts with the Israeli military, which has made it a frequent target of criticism.
In the UN report by Francesca Albanese titled “From the Economy of Occupation to the Economy of Genocide”, Elbit Systems is listed among companies that “contribute to the development of tools for surveillance, crowd control, urban warfare, facial recognition and targeted killings – tools that are tested in practice on Palestinians”.
The report specifically mentions drones developed and supplied by Elbit and another Israeli company, which operate alongside Israeli fighter jets during the bombardment of Gaza. These drones are used to monitor Palestinians and gather intelligence on targets.
With support from these companies and cooperation with institutions such as the Massachusetts Institute of Technology (MIT), “the drones used by Israel have acquired automated weapons systems and the ability to fly in swarms”.
“Drones, hexacopters and quadcopters have become omnipresent killing machines in the skies above Gaza,” the report states.
Accusations of genocide and denial
In September last year, the UN Independent International Commission of Inquiry on the occupied Palestinian territory concluded that Israel is committing genocide in Gaza, citing tens of thousands of civilian casualties and large-scale destruction, and called on UN member states to hold those responsible accountable.
“When clear signs and evidence of genocide appear, failure to act to stop it amounts to complicity,” said the then chair of the commission, Navi Pillay. “All states have a legal obligation to use all reasonable means at their disposal to prevent genocide in Gaza.”
Earlier, in January 2024, the International Court of Justice in The Hague – the UN’s highest court – ordered Israel to prevent its forces from committing or inciting genocidal acts against Palestinians, following a genocide case brought by South Africa. A final ruling on whether genocide has occurred in Gaza may take years. Israel denies the allegations.
Serbia as a new client
According to the Stockholm International Peace Research Institute (SIPRI), which monitors global arms trade, Elbit Systems is Israel’s leading manufacturer of weapons and military equipment.
In March, The Jerusalem Post reported that Elbit Systems is now the largest Israeli company by market capitalisation listed on the Tel Aviv Stock Exchange.
The company holds a number of lucrative government contracts in Israel and has, in recent years, been making deals with Belgrade.
At the beginning of last year, Elbit sold Serbia advanced PULS artillery systems and Hermes 900 unmanned combat drones worth a total of $335 million. In August, another contract worth $1.6 billion was signed, covering the delivery of drones, long-range missiles, electronic warfare systems and various other military equipment to Serbia.
BIRN previously reported that the Belgrade-based company Edepro – “a regional leader in propulsion solutions” for rockets, drones and projectiles – exported military goods to IMI Systems, which has been owned by Elbit since 2018.
Not everyone is enthusiastic about cooperation with the Israeli military giant. Citing an official document, Agence France-Presse (AFP) reported last year that Spain cancelled a contract worth around €700 million to purchase Elbit’s missile system after imposing an embargo on military trade with Israel.
Last month, a group calling itself the “Earthquake Faction” claimed responsibility for a fire at a factory belonging to the Czech LPP Holding, which in 2023 had announced a partnership with Elbit to develop drones. The group said its aim was to disrupt Israeli operations in Gaza.
Despite criticism, Elbit generated $7.9 billion in revenue last year, an increase of 16.3 per cent compared to 2024. The company has secured additional contracts this year, with business also boosted by the US-Israeli attack on Iran.
During a visit to Serbia in March, UN rapporteur Francesca Albanese described Serbia as “one of Israel’s strongest and most determined allies, without a shred of shame”. Serbia’s Ministry of Foreign Affairs responded that her statements were “inappropriate” and constituted “unacceptable interference in our country’s internal affairs”.
Investors have withdrawn from Elbit before
In 2009, the Norwegian government announced that its sovereign wealth fund would divest from Elbit Systems, following a recommendation by its Council on Ethics, due to the company’s role in supplying surveillance systems for the controversial separation barrier in the West Bank.
“We do not wish to finance companies that so directly contribute to violations of international humanitarian law,” said Norway’s then Minister of Finance, Kristin Halvorsen.
Danske Bank added Elbit to its list of companies failing to meet its socially responsible investment standards in January 2010.
Two months later, a Swedish pension fund also boycotted the company due to its involvement in constructing the West Bank barrier, which the International Court of Justice had deemed contrary to international law in a 2004 advisory opinion.
One of Denmark’s largest pension fund managers, PKA Ltd, announced in 2014 that it would no longer consider investments in Elbit for the same reasons.
British bank HSBC withdrew its investments from Elbit in 2018 after the company acquired IMI Systems, which produces cluster munitions.
(BIRN, 07.04.2026)