Kosovo, one of Europe's poorest countries, struggles as Iran war drives up fuel prices

PRISTINA, Kosovo (AP) — Kushtrim Ajvazi is proud to be part of a successful business in one of the poorest countries in Europe. The company where he is a manager produces potato chips and other snacks that can be found in almost every shop in Kosovo and are exported abroad.

But Ajvazi's company faces unplanned challenges because of a steep rise in fuel prices caused by the war in Iran, whose ripple effects have reached this small corner of southeastern Europe.

The Pestova company has nearly 100 acres of potato fields in eastern Kosovo that are used to make the potato chips sold under the name Vipa. Both the firm and its distribution network were hit when the wholesale price of fuel rose from 1.10 euros ($1.27) to up to 1.7 euros ($1.96) per liter, Ajvazi said.

Kosovo does not have its own fuel production. The price of diesel and gasoline is determined by importers whose profit margin is capped at 12%.

Ajvazi urged the government to help ease the burden. Spring is potato planting season.

The company needs a lot of fuel so costs are "extremely high," he said. Fertilizer prices also have gone up, but the company had reserves.

“We are analyzing and calculating every additional cost, and if we see that this process of rising costs continues, we will be forced to adjust our prices," Ajvazi said.

While other countries in Balkans have put in place measures to ease the effects on farmers, Kosovo's government is yet to act. The government did not respond to questions.

Romania, Hungary and Serbia have introduced special diesel prices for farmers or lowered the state tax income.

In Kosovo, economic experts warned that the government should urgently respond in case of a further price increase, to prevent greater damage to the economy.

“There is not one sector that is not affected by the price increase," economist Safet Gerxhaliu said.

Ajvazi said his company faces additional problems because around 40% of production is exported with prearranged, fixed prices that can be changed only with a 90-day advance notice. He said it is hard to plan anything without stable prices.

“We call on the government to ease this phase for us," he said. "We are a company that exports to more than 23 different countries, including those in Europe.”

The price hike has also burdened ordinary citizens. Bardh Mehmeti, an IT professional from the capital, Pristina, said he now pays 100 euros ($115) for a full tank, up from 80 euros ($92) before the crisis. Mehmeti is now “seriously considering" ways to get an electric car.

Kosovo's economy has struggled ever since the country declared independence from Serbia in 2008 following a war. Serbia does not recognize the split, and the unresolved situation has stalled the countries in their bids to join the European Union.

Also affecting Kosovo's economic situation has been a prolonged political crisis that left the country without a fully functioning government for much of last year. The current government of Prime Minster Albin Kurti is again in a stalemate over a failure to elect a new president.

The main opposition Democratic Party has criticized what it calls government inaction and urged temporary tax cuts to help ease the burden on citizens and businesses.

Associated Press writer Jovana Gec contributed from Belgrade, Serbia.

Workers are seen at production line of Vipa Chips factory in the village of Pestove, Kosovo on March 26, 2026. (AP Photo/Visar Kryeziu)

Workers at Pestova firm, inspect the potatoes for the Vipa Chips factory in the village of Pestove, Kosovo on March 26, 2026. (AP Photo/Visar Kryeziu)

A worker of Pestova firm inspects the potatoes in the village of Pestove, Kosovo on March 26, 2026. (AP Photo/Visar Kryeziu)

A worker of Pestova firm inspects the potatoes in the village of Pestove, Kosovo on March 26, 2026. (AP Photo/Visar Kryeziu)

Farmers of Pestova firm on the back of a tractor plant potatoes in the village of Pestove, Kosovo on March 26, 2026. (AP Photo/Visar Kryeziu)

NEW YORK (AP) — St. John's says Hall of Fame basketball coach Rick Pitino has signed a new agreement that will keep him under contract with the school through 2030, according to multiple reports.

Pitino was hired in March 2023 and given a six-year contract through 2029. Several outlets, citing anonymous sources, reported Sunday his restructured deal includes an additional year through the 2029-30 season and a raise that will make him the second-highest paid coach in the Big East behind Dan Hurley at UConn.

In three seasons with the Red Storm, the 73-year-old Pitino has led a remarkable resurgence for the New York City program, coaching the Johnnies to consecutive Big East regular-season and tournament championships. St. John's reached the Sweet 16 in the NCAA Tournament for the first time in 27 years before losing 80-75 to No. 1 overall seed Duke on Friday night.

“We’re thrilled that Coach Pitino has signed a new agreement to remain at St. John’s, a deal that will keep him in Queens through the end of the decade,” athletic director Ed Kull said in a statement, according to reports. “This extension reflects our strong confidence in his leadership, vision, and commitment to our student-athletes.

“Coach Pitino has changed the culture of our community and we want his presence to be felt on this campus for years to come. We look forward to more Big East championships and NCAA Tournament runs with Coach Pitino at the helm.”

Pitino earned his 900th career win on the court this season and said he'd like to reach 1,000. He is 81-25 at St. John's and coming off consecutive 30-win seasons.

AP March Madness bracket: https://apnews.com/hub/ncaa-mens-bracket and coverage: https://apnews.com/hub/march-madness

St. John's head coach Rick Pitino talks with his team during the second half against Duke in the Sweet 16 of the NCAA college basketball tournament, Friday, March 27, 2026, in Washington. (AP Photo/Abbie Parr)

St. John's head coach Rick Pitino gestures during the first half against Duke in the Sweet 16 of the NCAA college basketball tournament, Friday, March 27, 2026, in Washington. (AP Photo/Abbie Parr)