Impacts of EU Sanctions on Kosovo Amidst Upcoming Elections – 06/02/2025 | Zonebourse

The Lumbardhi Center faces significant financial challenges after the EU canceled a €1.5 million grant due to political tensions in Kosovo. This decision impacts various projects, highlighting the broader implications for Kosovo’s political stability, especially ahead of upcoming elections. Prime Minister Kurti’s policies have raised concerns about international support, while environmental projects, including a vital wastewater treatment facility, are also stalled. The situation underscores the ongoing ethnic divisions and economic difficulties within Kosovo.

Challenges Facing the Lumbardhi Center

The Lumbardhi Center has been grappling with significant financial difficulties, primarily depending on a €1.5 million grant from the European Union for vital renovations to its heating and drainage systems. Ares Shporta, the center’s executive director, disclosed that on October 7, he received a disappointing email from EU officials announcing the cancellation of this grant. The cancellation is attributed to “ongoing measures imposed by the European Union on the government of Kosovo,” a move linked to funding cuts scheduled for 2023, which the EU claims is due to Prime Minister Albin Kurti’s actions that have heightened ethnic tensions in the predominantly Serbian northern Kosovo.

“This has shaken the community’s trust in us, but also in the EU, which claims to support cultural diversity,” Shporta lamented in the entrance hall of Lumbardhi, where a noisy space heater provides warmth to a handful of patrons. While the EU has yet to release a detailed list of affected programs, multiple sources have informed Reuters that over a dozen projects, totaling at least €150 million, have been halted due to these restrictions. Notable projects include a €70 million wastewater treatment facility and the renovation of a concert hall. These sources requested anonymity to speak freely.

Impact on Kosovo’s Political Landscape

While Pristina has played down the implications of these measures, the fate of Lumbardhi and other projects highlighted by Reuters underscores the significant impact of these restrictions on one of Europe’s poorest nations. This issue has gained urgency as Kosovo, primarily Albanian but home to around 100,000 ethnic Serbs, gears up for elections scheduled for February 9. Analysts suggest that these developments could negatively affect Mr. Kurti’s prospects for reelection. According to two private polls shared with Reuters, Kurti’s Vetevendosje party and its coalition partners are projected to secure about 40% of the vote, a decline from 50.2% in 2021. Political analyst Agon Maliqi pointed out that many Kosovars are increasingly worried about their country’s potential isolation.

“While a majority of voters may feel satisfied that Kosovo has gained more control over the north, there is a prevalent concern about the sustainability of this situation without substantial international backing,” he stated. Some EU member nations are advocating for the lifting of these measures, arguing that they have not altered Kurti’s policies and are adversely affecting ordinary citizens, according to the senior diplomat and another official familiar with the matter. However, countries like France, which supports Serbia, and Hungary remain opposed to this initiative.

The diplomat emphasized that the sanctions disproportionately affect Kosovo rather than its northern neighbor, Serbia, which has also contributed to rising tensions. They noted that there is currently no mechanism in place to remove the restrictions, despite their apparent ineffectiveness. An EU spokesperson described the sanctions as “temporary and reversible” but did not detail which projects were impacted. They indicated that the EU would reconsider the sanctions if Kosovo managed to de-escalate tensions in the north.

“So far, the actions of the Kosovo government have not fostered an environment conducive to achieving this goal,” the spokesperson remarked.

Since declaring independence from Serbia in 2008 with U.S. support, Kosovo has faced numerous challenges in its relationship with Serbia. Kurti’s administration has struggled to mend ties with Belgrade, which is essential for Kosovo’s EU aspirations. In northern Kosovo, the 50,000 Serbs residing there do not recognize the authority of Pristina and instead rely on Belgrade for their salaries, pensions, and healthcare.

The EU has urged the establishment of an association of Serbian municipalities to grant Serbs greater autonomy. However, fearing potential secession, Kurti has rejected this proposal and instead sought to diminish the autonomy of Serbs in the north. He defends his approach, asserting that it has led to reduced crime, job creation, and enhanced peace while countering a more dominant adversary, Serbia.

“Our actions are not against the Serbs; they are against Serbia, which is opposed to Kosovo and our nation,” Kurti declared in a recent campaign speech. However, his administration’s decision to install Albanian mayors in predominantly Serbian areas and enforce the use of Kosovo license plates for vehicles has sparked the worst violence in a decade.

Despite the EU’s sanctions, Kurti remains steadfast. His government has prohibited the use of the Serbian dinar, closed Serbian-operated post offices, and hindered trade between Kosovo and Serbia. “Kosovo is isolated and penalized by the international community,” lamented Vlora Citaku, a member of the opposition Democratic Party of Kosovo, who previously served as Kosovo’s ambassador to the United States.

As the political climate evolves, it remains to be seen how the new U.S. administration will respond. Richard Grenell, the U.S. presidential envoy for special missions, recently expressed concerns about Kurti’s unilateral actions that destabilize the region, suggesting a unified international stance against his administration.

In the lead-up to elections, Kurti, a leftist Albanian nationalist, has achieved some milestones since taking office in 2021. Unemployment has decreased from 30% to approximately 10%, the minimum wage has risen, and the economy has outpaced other Western Balkan nations in growth. However, the divisions in northern Kosovo remain stark, with education, healthcare, shops, and cafes segregated along ethnic lines. Prices in Serbian stores are still listed in dinars rather than euros, further illustrating the separation of communities.

As Belgrade continues to support the Serbs in Kosovo, many must travel to Serbia to collect their pensions, a situation exacerbated by Kurti’s closure of Serbian-run post offices. Serbian retiree Dragoljub Ivic, 65, residing in Gracanica, must return to Serbia monthly for his €500 pension, incurring travel costs that consume a significant portion of his income. “In Kosovo, it is the population that pays for the politics,” Ivic shared, highlighting the increasing tensions that make life more difficult for Serbs in the region.

Environmental Issues and EU Commitments

The repercussions of the EU’s sanctions extend beyond political and economic concerns, affecting environmental projects that impact all ethnicities. The EU had pledged €70 million for the construction of the first wastewater treatment plant to address the pollution in Pristina’s canal system, which is currently overwhelmed with debris. This crucial project is now stalled, as confirmed by Alban Zogaj, deputy mayor of Pristina.

“After decades of inaction, it is imperative that we finally tackle the wastewater problem that contaminates the Sitnica River,” Zogaj emphasized, underscoring the urgent need for international support and cooperation to resolve these pressing issues.

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