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US Lost ‘Leverage’ by Lifting Sanctions on Ex-Serb Republic Leader, House Panel Hears

The Trump administration’s recent decision to remove sanctions on former Serb Republic President Milorad Dodik was a “mistake” because it "prematurely" gave up “leverage” it needs to promote stability in the Western Balkans, a foreign policy expert told a congressional panel Dec. 2.

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Edward Joseph, lecturer and senior fellow at the Johns Hopkins University School of Advanced International Studies, testified before the House Foreign Affairs Subcommittee on Europe that while Dodik was removed from the presidency this year, he refused to step down as head of his political party, the Alliance of Independent Social Democrats, or SNSD, which allows him to continue promoting secession from Bosnia and Herzegovina.

"I simply don't understand" the administration's decision, Joseph said. "I've negotiated many agreements in the region. You never give up your leverage until necessary."

Luke Coffey, senior fellow at the Hudson Institute’s Center on Europe and Eurasia, told the subcommittee it is unclear why the administration removed the sanctions or what, if anything, it got in return. Coffey said the administration's action "appeared out of the blue, unanchored to any broader U.S. strategy towards the Balkans."

Rep. Bill Keating, D-Mass., the subcommittee’s ranking member, urged the administration to restore the sanctions to address Dodik's "ongoing, disruptive behavior."

The administration in October removed the sanctions on Dodik and people and companies that supported him and his family, citing “constructive actions” by the Serb Republic’s National Assembly, which appointed an interim president to replace Dodik (see 2510290012).

Keating said he hopes the final version of the FY 2026 National Defense Authorization Act (NDAA) contains the Western Balkans Democracy and Prosperity Act, which would codify two U.S. executive orders that authorize property-blocking sanctions against those who threaten peace and stability in the Western Balkans and engage in corruption. The Balkans bill is included in the Senate version of the NDAA (see 2510100015).