U.S. Lifts Yugoslav Sanctions

President Clinton, responding to democratic advances in Yugoslavia, notified congressional leaders Friday that he is lifting economic sanctions that have been in place against Yugoslavia since the Kosovo crisis of 1999.

American companies have been prohibited from business dealings with Yugoslavia.

The lifting of an "outer wall" of U.S. sanctions against Yugoslavia opens the door to international lending to Belgrade, senior officials said on Thursday.

U.S. support is crucial for countries to get cash from the world's most powerful lending body, which Belgrade rejoined last month.

Relaxation of the sanctions does not apply to former President Slobodan Milosevic, his family and or associates. All told, 81 persons will continue to face restrictions in their dealings with the United States or U.S. entities.

Acting on his last full day in office, Mr. Clinton said he was responding to the peaceful democratic transition that has begun under President Vojislav Kostunica, who assumed his duties last fall after Milosevic was driven from the presidency during a popular revolt.

Mr. Clinton said the transition "opens the prospect of Yugoslavia rejoining fully the international community."

The 81 names on the U.S. list will continue to be barred from any dealings with U.S. banks. In addition, Americans cannot legally ship merchandise to them. U.S. officials said it also is highly unlikely that U.S. visas would be approved for them.

U.S. relations with Yugoslavia have been advancing rapidly since Kostunica became president.

"In October, the president both lifted certain sanctions against the former republic of Yugoslavia and at the same time announced we would be taking further steps," National Security Council spokesman P.J. Crowley told Reuters.

"We are now putting the finishing touches on a new regime which lifts sanctions against Serbia yet continues sanctions against Milosevic and his cronies," he added.

In October Mr. Clinton lifted an oil embargo and flight ban against Belgrade as a boost to Kostunica.

Kostunica strongly opposed the U.S.-led NATO bombing campaign during the 1999 Kosovo crisis and projected an anti-American image during his election campaign against Milosevic last year.

But his government sees the United States playing a critical role in helping the country overcome the economic crisis he inherited — a crisis to which the U.S. bombing campaign greatly contributed.

The relationship with Belgrade took a step forward two weeks ago with the visit to Washington of Foreign Minister Goran Svilanovic.

Mr. Clinton had been widely expected to remove the final layer of U.S. sanctions, imposed for Belgrade's role in a string of Balkan wars, before leaving office Jan. 20.

One potential issue which the incoming administration will inherit involves a determination of whether Yugoslavia is cooperating with the International Criminal Tribunal for the former Yugoslavia (ICTY).

In his message, Mr. Clinton said that notwithstanding the positive developments in Yugoslavia, "steps must still be taken to support the ongoing efforts of the ICTY and to continue to counter the threat that remains with respect to stability in the Balkan region and the full implementation of the Dayton peace agreement."

Congress has set a March 31 deadline for Yugoslavia to show that it is cooperating. If the new administration concludes Yugoslavia is not cooperating, the unspent portion of the U.S. assistance program will not be disbursed. The assistance program totals more than $100 million.

The tribunal has indicted Milosevic and a number of his cohorts.

Kostunica has said extraditing war crimes suspects, including Milosevic, would violate the Yugoslav constitution. He has suggested that they could face trial in a Yugoslav court rather than at the tribunal in The Hague.

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