(Bloomberg) -- Emmanuel Macron is closing in on a deal to sell Rafale fighter jets made by Dassault Aviation SA to Serbia, according to people familiar with the discussions.
The French president is set to sign an agreement with his Serbian counterpart, Aleksandar Vucic, during a trip to Belgrade on Thursday, said the people, who added that it will include provisions on defense, economic and energy cooperation.
Vucic previously said that the Balkan nation was seeking to purchase as many as a dozen of the French warplanes for about €3 billion ($3.4 billion).
Serbia has ramped up defense spending in recent years, including with orders of Pantsir air defense systems from Russia and Chinese-made, short-range missiles. While Vucic has condemned the invasion of Ukraine, he has refused to join the European Union’s sanctions against the Kremlin, trying not to sever ties with Russia, while increasingly seeking support from Beijing.
Spokespeople from Macron’s office and from Dassault Aviation declined to comment on the sale.
The Franco-Serbian deal could also mention the former Serbian province of Kosovo, with Serbia’s ambitions to join the EU relying firmly on normalizing relations. Belgrade doesn’t recognize the sovereignty of Kosovo, which declared independence in 2008. Macron has in recent months appeared sympathetic to Serbia’s views on the conflict.
At home, the French leader is still looking for a prime minister after dissolving the lower house of parliament, which further political consultations planned on Wednesday.
Macron has been leaning on Kosovo’s premier to step up efforts toward European integration, telling the Balkan leader he needs to offer more autonomy to the country’s Serb minority.
Macron’s visit will benefit Serbia’s path toward EU membership, and its economy in general as the country aspires to finally clinch investment-grade status from at least two agencies, Fitch Ratings and S&P Global Ratings, Vucic said on Pink TV on Monday.
Already in 2021, the United Arab Emirates filed an order for 80 Rafales during a visit by Macron, following other agreements with Greece, Croatia and Egypt. The company got an order from Indonesia for 42 Rafales in 2022.
Its chief executive, Eric Trappier, told BFM Business on Tuesday that discussions with Serbia were still going on.
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