Blocking Property of the Governments of the Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of Serbia, and the Republic of Montenegro, and Prohibiting New Investment in the Republic of Serbia in Response to the Situation in Kosovo

This executive order blocks all property and financial transactions of the Yugoslav (Serbia and Montenegro), Serbian, and Montenegrin governments held by U.S. persons, prohibits new U.S. investment in Serbia specifically, and declares a national emergency over the Kosovo conflict's threat to regional stability and the Dayton peace agreement.

Federal Register Open PDF 63 FR 32109

Impact dates

Jun 10, 1998
Order effective at 12:01 a.m. EDT

Key directives

Block all property and interests in property of targeted governments in U.S. possession or control
Prohibit financial transactions and trade financing with targeted governments by U.S. persons
Prohibit all new investment by U.S. persons in Republic of Serbia
Prohibit facilitation of others' new investment in Serbia by U.S. persons
Allow domestic dinar transactions within Yugoslavia and bank note/barter arrangements
Treasury Secretary authorized to promulgate rules and regulations
Treasury Secretary to consult State Secretary and give special consideration to Montenegro
All agencies directed to take appropriate measures including suspension/termination of existing licenses

Who is ordered

Timeline

Immediate

Property blocking takes effect at 12:01 a.m. EDT June 10, 1998
All financial transactions with targeted governments prohibited
New investment in Serbia prohibited
Existing licenses subject to suspension or termination

Near term (90d)

Treasury Secretary to issue implementing regulations
Potential redelegation of enforcement functions to other agencies

Long term

Continued sanctions until national emergency terminated or order revoked
Special consideration for Montenegro circumstances in ongoing implementation

Risks & tensions

Humanitarian exemption narrow—only 'purely humanitarian' donations to charitable organizations excluded from investment ban
Montenegro receives 'special consideration' but not exemption, creating implementation tension with Serbia-specific sanctions
Domestic dinar/barter carve-out may create monitoring challenges for evasion
State-owned and 'socially owned' entity definitions sweep broadly with successor liability
No sunset or review deadline specified—duration tied to national emergency continuation