State Ministry Withdraws Drone Production Permit from BNT Novi Travnik

Bosnia and Herzegovina’s Minister of Foreign Trade and Economic Relations Stasa Kosarac, a senior representative from Republika Srpska, has revoked the drone production license of BNT Tvornica masina i hidraulike, one of the flagship defense manufacturers based in the Federation of Bosnia and Herzegovina.

The decision was taken at the state level and follows both regular and extraordinary inspections carried out on the minister’s order. According to the Ministry of Foreign Trade and Economic Relations, inspectors identified multiple violations of Bosnia and Herzegovina’s Law on the Production of Arms and Military Equipment related specifically to BNT’s unmanned systems programme.

The ministry stated that the actual number of drones produced, as well as their technical and operational characteristics, did not correspond to the data submitted by BNT when it applied for approval to manufacture a prototype. Inspectors concluded that significant design and capability changes had been introduced without prior notification to, or approval from, the competent state authorities.

Further findings indicate that BNT continued producing drones after the expiry of its authorization, effectively operating without a valid legal basis. Inspectors also flagged irregularities related to subcontracting arrangements, noting that certain cooperation agreements were neither presented during inspections nor submitted to the ministry within the legally prescribed deadlines.

As a result, the ministry announced that misdemeanor proceedings will be initiated against BNT Novi Travnik and the responsible individuals within the company, with a proposal for maximum financial penalties under the applicable legislation. In parallel, the formal decision was issued to revoke the company’s license to produce drones.

The move is politically and institutionally sensitive. BNT Novi Travnik operates in the Federation of Bosnia and Herzegovina and is regarded as one of its most important defense-industrial assets, with decades of experience in artillery systems manufacturing. In late October 2025, the company publicly showcased two military drone types at its Novi Travnik facility, in the presence of Federation Prime Minister Nermin Niksic and the Federation’s industry leadership.

The case underscores both the tightening regulatory oversight of unmanned systems in Bosnia and Herzegovina and the complex entity-level political context in which state-level defense export and production controls are enforced.