Rising geopolitical tensions are undermining global anti-corruption efforts, fueling populism, and empowering autocrats. Illicit financial flows have surged in the Western Balkans and the Black Sea region following Russia’s full-scale invasion of Ukraine, further corrupting institutions, eroding state legitimacy, enabling state capture, and discouraging investment. As global challenges intensify, the region stands at a crossroads.
To discuss the avenues for strengthening resilience and safeguarding democratic integrity, SELDI held the high-level meeting “Fight Against Corruption: Innovations Against Illicit Power” on 15 April 2025 in Skopje.
In his opening remarks, Aleksandar Krzalovski, Director of the Macedonian Center for International Cooperation stressed that public trust in anti-corruption efforts is fading, warning that corruption kills. Ben Nupnau, Deputy Head of the Delegation of the European Union to North Macedonia underlined that corruption is fundamentally a political issue – one that requires political will, deep societal transformation, and collective action to overcome. During the keynote discussion, Arben Fetai, Deputy President of the Government of Republic of North Macedonia in charge of Good Governance noted that upholding integrity amidst war and dwindling global financial aid demands urgent action at both national and EU levels, with strong support from the civil society. Nicole Varnes, Chargé d’Affaires at the U.S. Embassy in North Macedonia added that corruption enables crime, drugs and human trafficking. To effectively address these threats, she called for regional cooperation focused on ilicit finance tracking and intelligence sharing. Véronique Hulmann, Ambassador of Switzerland to North Macedonia, further explained that Switzerland’s assistance will focus on strengthening municipal integrity and expanding e-services. She emphasized the need for increased integrity in public procurement and foreign aid. EU funds, particularly under the Reform and Growth Facility for the Western Balkans, should be directed toward reinforcing the rule of law and ensuring economic security. In conclusion, Bart de Bruijn, Regional Rule of Law Coordinator, Embassy of the Kingdom of the Netherlands in Serbia and in Montenegro pointed out that specialized prosecution offices and anti-corruption agencies play a crucial role in combating high-level corruption. However, countries in the region must first break away from a culture that normalizes corruption and impunity – beginning at the highest political levels, where leadership by example is essential.
During the discussion, CSD presented its latest analysis, revealing that the recent surge in illicit financial flows is closely tied to the re-export of dual-use goods from the EU to Russia. These flows are facilitated by entrenched smuggling routes and trade misinvoicing practices in the Western Balkans and Black Sea regions. To address this, CSD recommended establishing regional coordination groups to monitor and prevent sanctions evasion. Building on these findings, panellists stressed the urgent need for institutional reform to restore public trust. They advocated for improved recruitment policies for civil servants, enhanced capacity for financial investigations targeting illicit wealth and suspicious transactions, and the introduction of measurable law enforcement targets. The discussion further underscored the critical role of data-driven risk assessments and early warning systems in detecting and mitigating emerging threats, including strategic corruption. The panellists urged Western Balkan governments to implement stronger foreign investment screening and due diligence procedures, including in the allocation of foreign aid. Finally, the experts proposed that seized assets be redirected to support civil society initiatives, creating a virtuous cycle of accountability, transparency, and societal resilience.
Presentation by Dr. Tihomira Kostova
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