U.S. Lifts Sanctions on Bosnian Serb Political Figures and Entities, Signaling Shift in Western Balkans Policy

Treasury’s Office of Foreign Assets Control (OFAC) has removed sanctions on a group of Bosnian Serb political leaders, family members, and affiliated companies previously designated under Executive Order 14033 for attempts to undermine the 1995 Dayton Peace Agreement and destabilize Bosnia and Herzegovina’s constitutional order.

The decision marks a significant reversal in U.S. policy toward the Western Balkans and comes amid renewed diplomatic engagement with Republika Srpska leadership.

The delistings include Bosnian Serb President Milorad Dodik, long regarded by Washington as the principal architect of secessionist efforts within Republika Srpska, as well as members of his inner circle such as Igor and Gorica Dodik, and a network of media, agricultural, and technology firms previously accused of facilitating corrupt patronage schemes. Entities including Alternativna Televizija (ATV), Prointer ITSS, Agape, Fruit Eco, and Infinity Mediawere also removed from the Specially Designated Nationals and Blocked Persons (SDN) List.

OFAC initially sanctioned Dodik in 2017 under Executive Order 13304, later re-designating him in 2022 under Executive Order 14033 for what officials described as “direct attacks on the constitutional framework of Bosnia and Herzegovina.”

Those measures were expanded to include his family and business affiliates, alleging the use of state contracts and media control to consolidate political power and threaten national stability. The Treasury Department at the time accused Dodik of fostering “corruption at the highest levels of government.”

One week earlier, the  administration quietly removed from the SDN list four Bosnian Serbs who had been sanctioned on similar grounds [14386]

The U.S. government did not issue an immediate public statement detailing the rationale for the delistings. However, officials familiar with the decision said it reflects an assessment that the sanctions regime had not achieved its intended policy outcomes and may be hindering renewed negotiations aimed at restoring political functionality within Bosnia and Herzegovina.

Diplomatic observers note the move could facilitate U.S. engagement with Republika Srpska amid rising Russian influence in the region. Critics, however, warn that lifting sanctions may embolden nationalist leaders who continue to advocate for the dissolution of Bosnia and Herzegovina’s state institutions.

https://ofac.treasury.gov/recent-actions/20251029