The EU is set to lift sanctions imposed on Kosovo and unblock long-frozen financial assistance after an improvement in stability in the country’s north, populated mainly with Kosovo Serbs, European Commission President Ursula von der Leyen said on December 17.

Von der Leyen said the transfer of local governance following recent local elections in northern Kosovo had been peaceful, clearing the way for Brussels to move forward with lifting restrictive measures. As part of the decision, the EU is programming €216mn in financial assistance, with €205mn expected to be released early next year.

“Good news for Kosovo!” von der Leyen wrote on X network.

The measures against Kosovo were introduced in June 2023 after a sharp escalation of tensions in Serb-majority northern municipalities, where protests erupted over the installation of ethnic Albanian mayors following boycotted local elections.

The EU responded by suspending high-level political contacts, freezing parts of financial assistance and excluding Kosovo from certain regional initiatives, arguing that Pristina had failed to take sufficient steps to de-escalate the situation.

Brussels repeatedly stressed that the sanctions were reversible and tied to concrete actions, including new local elections, reduced police presence around municipal buildings and engagement in EU-facilitated dialogue with Serbia.

The recent elections, which saw a calmer security environment and a smoother handover of local authority, appear to have met those conditions. EU officials have framed the move as a signal that progress and restraint will be met with tangible support.

The release of funds is expected to support economic development and reform efforts, at a time when Kosovo remains heavily reliant on EU assistance and political backing.

The announcement comes ahead of Kosovo’s snap general election, scheduled for December 28.