Jugoimport Pursuing Collection of Military Equipment Debt from Ethiopia through Sale of Movables

Military vehicle (BETAPHOTO/DEFENSE MINISTRY)

The Jugoimport-SDPR company is pursuing the collection of a debt owed to it by the Federal Democratic Republic of Ethiopia for military equipment delivered in the 1980s and early 1990 through the sale of movables, Forbes reported on Jan. 21.

The company is seeking collection based on the 2015 arbitration decision by the International Court of Arbitration of the International Chamber of Commerce. Ethiopia has not paid its debt to SDPR voluntarily, so the Serbian company is attempting to collect on the debt by having the country's movables at two addresses in Belgrade (6/6 Knez Mihailova Street and 20 Kneza Aleksandra Karadjordjevica Street) inventoried, appraised and sold.

Ethiopia owes Jugoimport a total of RSD26.3 billion, or almost EUR225 million at the current rate of exchange. This amount includes the principal, interests and the costs of arbitration. The arbitration decision included an itemized statement of debt.

For the debt collection to be possible, the Belgrade Commercial Court must recognize the 2015 arbitration decision and rule on the collection. The motion for the court to do so was filed in April 2025. A solution for settling Ethiopia's debt issuing from 21 sale contracts for weapons and other military equipment and one loan agreement has not been found in over two decades. Jugoimport launched arbitration proceedings with Ethiopia twice -- first in 2000, and then in 2011, ending in the 2015 decision.