As of January 31, 2025, the United States has 398 active sanctions against individuals, companies, and organizations from the Western Balkans, VOA in Serbian language reports.
Bosnia and Herzegovina accounts for the highest number of sanctions (177), followed by Serbia (80), Kosovo (60), North Macedonia (46), Albania (23), and Montenegro (11). One sanction is linked to an individual from Croatia.
The Voice of America has developed the first comprehensive database covering all sanctions imposed by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) and the State Department between 2017 and 2024.
Sanctions as a Foreign Policy Tool
“Sanctions are one of the most important tools of U.S. foreign policy,” said Richard Nephew, a sanctions expert and former State Department coordinator for global anti-corruption efforts. “They allow us to target hostile actors and apply pressure on those we want to influence politically.”
John Smith, former director of OFAC, emphasized that the primary goal of U.S. sanctions is “to prevent and halt certain troubling activities and to compel individuals to change their behavior.” He noted that most U.S. sanctions, including those targeting the Western Balkans, are aimed at individuals and organizations rather than entire nations.
The U.S. has imposed sanctions on the Western Balkans in two major periods. Between 2001 and 2004, sanctions were implemented in response to war crimes, state destabilization, and threats to peace following the breakup of Yugoslavia. After a period of relatively few sanctions, new measures were introduced in 2021, primarily targeting corruption, threats to peace and stability, and links to Russia’s invasion of Ukraine.
In the past four years, high-ranking officials have been sanctioned, including Milorad Dodik, president of Republika Srpska in Bosnia and Herzegovina; Serbian government ministers Aleksandar Vulin and Nenad Popović; former North Macedonian Prime Minister Nikola Gruevski; former President of Serbia and Montenegro Svetozar Marović; and former Prime Minister of the Federation of Bosnia and Herzegovina Fadil Novalić.
“Over the past few years, we have seen various actors in the Western Balkans undermining regional stability,” said Nephew, now a senior researcher at Columbia University. “They do this in different ways—by eroding democratic processes, threatening human rights, or engaging in corruption that weakens these countries.”
New Sanctions on Dodik and His Associates
Since the wars in the former Yugoslavia, U.S. presidents have annually renewed the state of emergency for the Western Balkans, facilitating the maintenance of existing sanctions and the imposition of new ones. Sanctions are also issued on national security grounds through executive orders.
According to the Voice of America database, OFAC has issued 341 sanctions, categorized into various lists. The largest is the “Balkans” list, which includes 152 individuals and 16 companies and organizations. Among those sanctioned are convicted war criminals Radovan Karadžić, Veselin Šljivančanin, Milan Martić, and Ratko Mladić; members of Slobodan Milošević’s family; and groups such as the Ravna Gora Chetnik Movement and the Albanian National Army.
All “Balkans” list sanctions—except those against Dodik—were issued between 2001 and 2004.
Dodik was first sanctioned in January 2017 for obstructing the Dayton Peace Agreement. In January 2022, he became the first Bosnian official sanctioned under Executive Order 14033 for undermining Bosnia and Herzegovina’s institutions, creating parallel structures in Republika Srpska, engaging in corruption, and promoting ethno-nationalist rhetoric.
The OFAC “EO 14033” list includes 76 individuals and entities, mainly from Bosnia and Herzegovina and primarily linked to Dodik. Among them are Bosnian Presidency member Željka Cvijanović, Dodik’s children Igor and Gorica, and multiple associates and businesses.
Sanctions under EO 14033 were introduced by then-President Joe Biden to expand measures against threats to stability and peace, with “widespread corruption” cited for the first time as a justification.
At a press conference on January 23, 2025, Dodik claimed that U.S. sanctions had proven ineffective. However, recent events suggest otherwise.
In March 2024, U.S. authorities warned banks in Bosnia and Herzegovina against doing business with sanctioned individuals and entities. As a result, banks began closing accounts, preventing officials—including Dodik—from receiving salaries.
“Part of our goal is to alert banks about bad actors, so they understand the risks of exposure to sanctions,” Nephew explained. “Many of these banks don’t necessarily have opinions on individuals, but they care about maintaining access to the U.S. financial system. That’s leverage we can use.”
Smith, now a national security attorney at Morrison & Foerster, noted that this practice is common: “During my time at OFAC, we traveled worldwide advising banks and major companies not to do business with sanctioned entities.”
To circumvent restrictions, new companies with different names but similar ownership structures have been established in Republika Srpska. However, U.S. authorities have detected and sanctioned these entities.
On January 18, 2025, Gorica Dodik announced on social media that she was closing her restaurant Agape due to account closures, which prevented staff from being paid. Agape was sanctioned in October 2023, and in December 2024, OFAC added Best Service to the list, stating it was registered at the same address and operated similarly.
“The consequences are significant. Many businesses have shut down, and employees have lost their jobs due to account closures,” said Ivana Korajlić, executive director of Transparency International Bosnia and Herzegovina.
“In the long term, a positive effect could be that corrupt officials find it increasingly difficult to ensure loyalty within their own ranks,” she added.
State Department Sanctions and U.S. Entry Bans
In addition to OFAC’s “Balkans” and “EO-14033” lists, most Western Balkans-related sanctions fall under “GLOMAG” (52 entities) and “Russia-EO 14024” (18 entities).
The “GLOMAG” sanctions, imposed under the Global Magnitsky Act, target human rights abuses, corruption, and organized crime. The list includes individuals and companies from Serbia and Kosovo.
For example, in December 2021, Zvonko Veselinović was sanctioned as the leader of a Kosovo-based criminal group. That same year, Milan Radoičć, former vice president of the Serb List party, was sanctioned. In 2024, Kosovo authorities charged him with terrorism.
The “Russia-EO 14024” sanctions, imposed in response to Russia’s invasion of Ukraine, target entities supporting Russia’s military industry. One prominent addition is Serbia’s state-owned oil company NIS, sanctioned in January 2025 due to its ties to Gazprom Neft.
Unlike OFAC sanctions, which focus on financial restrictions, the State Department bans sanctioned individuals and their families from entering the U.S. under Section 7031(c) of the Appropriations Act. The Voice of America database includes 57 such travel bans.
While sanctions often block access to U.S. financial systems and assets, many Western Balkans figures continue to hold public office, win elections, and retain influence, raising questions about their effectiveness.
However, experts argue that over time, financial isolation and reputational damage may undermine their power and ability to operate. /BV
