Finance
EU to lift sanctions on Kosovo and release financial aid, von der Leyen says
Published by Global Banking and Finance Review
Posted on December 18, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 18, 2025
2 min readLast updated: January 20, 2026
The EU will lift sanctions on Kosovo and release €205 million in aid, following improved relations and local elections. This move supports Kosovo's EU membership goals.
BELGRADE, Dec 18 (Reuters) - The European Union is set to lift sanctions it imposed on Kosovo in 2023 over tensions in the north of the country and will release financial assistance, European Commission President Ursula von der Leyen said.
EU countries introduced punitive measures against ethnic Albanian-majority Kosovo after Prime Minister Albin Kurti’s government failed to respond to EU and U.S. calls to defuse unrest in the Serb-majority north following the worst violence there in more than a decade.
The measures included halting visits by Kosovo officials to the EU and suspending a large part of EU economic aid.
"Good news for Kosovo," von der Leyen said in a post on X late on Wednesday. "We are programming 216 million euros ($253 million) of financial assistance and intend to release 205 million euros early next year."
Violence erupted in northern Kosovo in 2023 after ethnic Albanian mayors took office following local elections boycotted by Serbs demanding the implementation of a decade-old deal granting greater autonomy.
About 30 NATO peacekeeping troops guarding town halls were injured in clashes with Serb protesters, and 52 Serbs were also hurt.
Von der Leyen said the EU had decided to lift the measures after Serb mayors were inaugurated following local elections held in October.
Kosovo is due to hold a parliamentary election on December 28 after the failure to form a government following a February vote.
Kosovo and Serbia, of which Kosovo was part until its 2008 declaration of independence, need to normalise relations to progress towards their shared goal of EU membership.
($1 = 0.8532 euros)
(Reporting by Ivana Sekularac, Editing by Timothy Heritage)
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the day-to-day operations of the EU.
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