U.S. Policy and Regional Security Challenges in the Western Balkans

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Subcommittee on Europe will come to order. The purpose of this hearing is to review US policy in the Western Balkans, focusing on the ongoing instability, primarily driven by ethnic and political tensions in Bosnia and Herzegovina, uh North Macedonia and between Serbia and Kosovo. I now recognize myself for an opening statement. Last December, this committee held a hearing uh to promote balance in the Balkans. It remains my assessment that the instability in the Western Balkans is the preeminent threat to US national security interests in a post-Ukraine war in Europe. And I will add, along with the uh possibility of the kinetic uh in the Baltic region in the north. In May of this year, I led a congressional delegation to obtain first-hand knowledge of ongoing challenges in the Western Balkans. The core objective of our visit was to engage in dialogue and receive perspective from NGOs, government officials, opposition leaders, civic leaders, civilians, students, and military in order to garner ground truth. My message during those engagements was consistent. Preserving stability in the region is essential for future success. Yet as it stands today, hybrid warfare is real. Hatred continues. Discrimination is real. Stasis is real. Not preparing for chaos in the Balkans and a post-Ukraine Russia war could prove catastrophic. Projecting strength will be essential to counterbalancing that chaos and preserving regional security. In Bosnia and Herzegovina, for example, the October fourth elections represent an opportunity to move forward in reconciling differences in achieving tangible progress for its citizens. Unfortunately, Ethic ethnic divisions between Bosniaks, Serbs and Croats continue a pace. While real policy discussions over state land reform and energy policy should be the focus, historic divisions and grievances persist today. The open question on the role and responsibilities of the office of High Representative continues to split opinions in the country. The High Representative position was not intended to be perp uh permanent. yet here we are thirty years on. Instead, the objective of the High Representative was to prepare the government of Bosnia and Herzegovina to take full responsibility for its own affairs without the need of international supervision or governance. During my visit to Belgrade, I reiterated the need for Serbia to be a force for stability in the region. Unfortunately, rather than looking toward the future, the Serbian government continues to embrace a narrative of victimization rooted in the past. Such sentiments are demonstrated through its refusal to recognize Kosovo's independence, and giving state honors to convicted war criminals, as we saw last week during the funeral of Horadko Milatovic, uh, the architect of the Srebrenica genocide where more than eight thousand Bosniak men and boys were murdered. Additionally, investigating the issue of minority rights of ethnic Albanians in southern Serbia, especially in the Prseva valley, was a priority during our visit. What became clear to me is that no matter where ethnic tensions and discrimination exist, the protection and respect of minority rights across the region uh continue to be es essential insh ensuring stability. This also extends to allowing the legal movement of people across borders, including Serbia, Kosovo and North Macedonia. The blocking in our gamesmanship over key border crossings is unnecessary and antagonistic. Opening the blocked highway between the ethnic Albanian area of Serbia and North Macedonia would cut a thirty kilometer commute for ethnic Albanians to just two point five kilometers and that's just one example. In Kosovo, recent elections have been inconclusive in providing a clear governing coalition. As the parliament works to elect a new president, I call on all political leaders to work together in finding common ground. The challenges facing Kosovo, and internationally require that a government be formed, particularly a formally elected president. During my visit I also conducted meetings with NATO military leadership for the Kosovo force also known as KFOR. While NATO membership for Kosovo is the most ing- important ingredient for Kosovo's security, this long-standing mis- mission is the present bulwark for peace between Kosovo and Serbia. Both governments recognize it as the key to avoid kinetic conflict. Consequently, the considered withdrawal of US troops uh is the most immediate threat of of uh to peace between the two countries. This is a prime example of of US presence making a difference. As Chairman of the Subcommittee on Europe, I will continue advocating for the reality on the ground. Kosovo is an independent, democratic and strategic partner of the United States. Roughly one hundred company uh countries recognize the with estimates as high as one hundred and twenty-one. It is time for the non-recognizing nations, especially with the four remaining NATO members, Greece, Romania, Slovakia and Spain, to embrace the fact that Kosovo is here to stay. The refusal of these four countries is preventing Kosovo's integration into NATO, which I believe is the biggest obstacle to stability in the Western Balkans. I sponsored House Resolution twelve forty-six, which expresses the sense of the House of Representatives in support of Kosovo's integration into NATO. Just to comment on constitutional courts across the region. They continue to show political bias. And tangentially, the tribunal in The Hague tomorrow, I think, hopefully will not show the same. I want to applaud the, I want to applaud the Trump administration's focus on the Western Balkans. That includes efforts to increase American energy as well as the nominations of ambassadors from Montenegro, Serbia, Bosnia and Herzegovina, and a confirmed ambassador for Albania. I urge the administration to put forward nominations for Kosovo and North Macedonia now. It is critically important that President Trump has his personal representatives in each of these countries, in order to achieve our objectives. And the the ambassador is a common issue I hear both in my office and my travels through the region. In conclusion, the United States should continue to play a pivotal role in ensuring safety, security and stability in the Balkans, specifically US participation in KFOR and the appointment of ambassadors. In both BH and and Kosovo, the conflicts were frozen, not settled. But the envisioned new order was never recognized, never realized. And time now largely stands still as we move toward the future. I look forward to the testimony of today's witness. We hope that you can provide the State Department's current assessment and policies toward the Western Balkans. The chair now recognizes the ranking member from Massachusetts, Mister Keating, for an opening statement.

Thank you, Mister Chair, I strongly believe in pursuing regional stability in the Western Balkans. Three decades after such a devastating conflict, a secure, sovereign, and economically sound Western Balkans is critical people of the region and for the United States. Sadly, while the Trump administration publicly advocates for regional stability, political cronies, outside actors, and friends of the presidents are using their connections to the White House to pursue corrupt deals in the Western Balkans enriching themselves in undermining U S security. Two prominent examples relate to the president's son-in-law, Jared Kushner. As president, Trump designated Kushner to negotiate globally with the countries including Russia and Ukraine. He's pursued billion dollar real estate deals, first in Serbia, now in Albania. If this type of self-dealing took place in any foreign country, any common sense American official would call it out. I hope my Republican colleagues join with me. Because this morning I I released a groundbreaking report entitled " Pay for Play in the Balkans: How the Trump Administration's Bosnia Policy Enriches the President's Personal Allies and Short-Changes the American People." I want to thank ranking member Miks and the other Democrats in the subcommittee for signing on to this report. This report recounts the administration's corrupt decisions, in particular removing long-standing sanctions on Bosnian Serb secessionist leader, Milorad Dodik, and second, facilitating the concessions for Bosnia's southern intercon intercontinental interconnection rather, gas pipeline to a company with no regional or energy sector experience at all. Only recently, uh, this was established by Trump's affiliates, Jesse Bunnell and Joseph Flynn, the brother of former National Security Advisor and Trump ally Michael Flynn. The report concludes that the Trump administration's October twenty twenty-five decision to de-list Milorad Dodik didn't alter his behavior. Instead, the de-listing emboldened him and enabled his lobbyists, Rod Balogovich and the same Michael Finn Flynn, both of whom received pardons from President Trump for their crimes, to enrich themselves. In December, twenty twenty five, Congress passed the Western Balkans Demecra- Democracy and Prosperity Act, which I led, and which requires the Trump administration to impose sanctions on any individual threatening peace and stability in the Western Balkans. Dodek is blatantly violating this legislation and the Trump administration must immediately reimpose sanctions on him. The report I've released today also finds that the Trump administration used its geopolitical influence to pressure Bosnian officials to pass special legislation to guarantee that AAFS Infrastructure and Energy LLC, a company owned by former Trump lawyer Jesse Benal and the aforementioned Joseph Flynn, is the only company eligible to receive the contract for the Southern interconnection gas pipeline. This report details how on November twentieth, twenty twenty five, the US embassy in Sarajevo first posted publicly about the potential for a US company to run the pipeline and just four days later, four days, Benal and Flynn established their company, AAFS, in the United States. Five months later, after numerous consultations with the State Department, AAFS was written into Bosnian legislation as the only company eligible to receive the contract for the pipeline. I believe this occurred only because of Benal and Flynn's personal connections to the president, since we have no, they have no experience whatsoever in operating an LNG pipeline, and no experience in the Western Balkans. They have no business receiving this sole source designation, And the Southern Interconnection Gas Pipeline is too important to the uh Bosnians and to the region and to the US interest to allow this graph to continue. While Americans' strong struggle financially, Joseph Flynn and Jesse Benalla lined up to get a billion dollar contract for a pipeline in Bosnia. Rod Balog- Balogovic and Michael Flynn, the lobbyists for Dotic and political allies of the presidents, have profited hundreds of thousands of dollars because of their connections with the administration. So as we address many important issues in the West- Western Balkans, from a continued US role in NATO's K-four to the importance of supporting EU and NATO ascension for Western Balkan countries, I'm also hopeful that our witnesses can shed some light on these two decisions in Bosnia that clearly run counter to our interests. Thank you, and I yield back.

Other members of the committee are reminded that opening statements may be may be submitted for the record. We are pleased to have Deputy Assistant Secretary Daniel Lawton from the Bureau of European and Eurasian Affairs at the US Department of State before us today. Uh, sir, your full statement will be made part of the record, and I'll ask you to keep your spoken remarks to five minutes in order to allow time for member questions. I now recognize Mister Lawton. for an opening statement.

Chairman Self, uh, Ranking Member Keating, uh, distinguished subcommittee members and members of your teams, uh, thank you for this opportunity to testify today on US policy in the Western Balkans. Uh, we appreciate uh congressional attention and travel to the region, including uh, Mister Chairman, your travel to the Western Balkans in May. United States seeks a stable, peaceful, and prosperous Western Balkans. that contributes to regional and global security. We are pursuing positive relations with actors in the region to maintain stability, expand economic cooperation, and counter threats that directly affect the United States. At the thirtieth anniversary commemoration of the Dayton peace agreement, Deputy Secretary of State Landau made clear that the era of externally imposed nation-building is over. Instead, we urge local leaders to forge local solutions to local problems. We urge leader leaders across the region to move beyond re- relitigating past disputes and to focus on pragmatic initiatives that move their countries forward. I want to clarify, this does not mean US disengagement. We remain active in pursuing constructive outcomes that advance the interests of the American people. while empowering local actors to drive their own solutions. And we remain ready to work with those prepared to move into the future. U. S. policy rests on three pillars. The first is maintaining stability. This is a prerequisite for all our objectives. Second, we are advancing U. S. economic and commercial interests through private sector led growth and investment climates that welcome American business. These two pillars, stability and prosperity, are mutually reinforcing. Third, we are working with our partners in the region to counter threats, including from Balkan criminal organizations that directly cooperate with Western hemisphere cartels that threaten the United States. We pursue these objectives through sustained high-level engagement and the use of all the tools at our disposal, including those enacted by Congress. We also expect European partners to carry a greater share of the region's security burden. For our Western Balkan NATO allies, this includes modernizing their militaries and meeting NATO defense spending commitments and their capability commitments, NATO three point O. The United States remains committed to Bosnian Hercegovine's sovereignty and territorial integrity and to the stability brought by the Dayton Agreement. Last year, U S diplomacy resolved a long-running crisis, preserving the country's legal cohesion in constitutional order, while securing the withdrawal of the Republika Srpska's most anti-Dayton legislation. Next month, the people of Bosnia will cast their ballots in an important election, and we stand ready to work with the new leadership on shared interests. Similarly, the United States remains committed to Kosovo's independence and territorial integrity. We enjoy a broad collaborative agenda with Kosovo. Unfortunately, that agenda has been hindered by repeated elections, a prolonged caretaker government, and the delayed formation of needed institutions. And we are urging Kosovo's leaders to bring this process to conclusion in accordance with its constitution and court rulings. The NATO-led Kosovo force, or KFOR, yes, it remains critical to maintaining safe and secure environment in Kosovo, And it is supported by U S force contributions. In Serbia, we are advocating for the United States as the partner of choice to counter adversarial influence. In July, we hosted the first ever U S-Serbia strategic dialogue to advance energy, defense, security, and commercial cooperation. Engagement with this pivotal country and the regional balance will remain critical to safeguarding U S interests. Normalization of relations betw- a- and the maintenance of peace between Serbia and Kosovo is essential to regional stability. Significant progress has occurred since the twenty twenty Washington agreement which was brokered by our president during the first term. Nevertheless, the EU-facilitated dialogue has stalled because of insufficient will on politi- on both sides. And we urge Belgrade and Pristina to avoid provocations to uphold their commitments and resume talks without preconditions. Let me say quickly, we're also working closely with our NATO allies, Albania, uh, Montenegro and North Macedonia on our shared security goals, as well as to counter transnational criminal organizations. Summing up, our engagements in the Western Balkans are tied to achievable objectives and measurable results. Our focus is on supporting pragmatic, locally driven solutions that bolster stability, expanding commercial and security cooperation, and advancing the interests of the American people. Thank you, Mister Chairman, and I look forward to your questions.

Uh, thank you, Mister Lawton. I now recognize myself for five minutes of questioning. I wanna start with um Serbia. Uh, we always focus on the Russian influence in Serbia. However, more than half of the Chinese investment in this entire region goes into Serbia. So What is your assessment, what is the US uh policy and I uh you focused on Serbia in your comments. How are we counteracting that huge investment into Serbia? Uh because I believe that China uh China's interest is to continuing the the instability in the region and I certainly think these investments uh lead to that conclusion. Sir.

Mr. Chairman, thank you for that important question. Uh, what I can assure you is that the United States continues to work with Serbia and all our allies in Western Balkans to ensure that they pursue investments that don't allow geopolitical rivals, particularly China, to take ownership over critical infrastructure. In the case of uh of Serbia, uh we are concerned that uh their investments in uh defense uh defense articles coming from China particularly air defense the only European country to buy from China, air defense, that that could jeopardize our ability to work closely and promote defense cooperation with Serbia. We want to, as I said in my opening remarks, to be the partner of choice, so we continue our active commercial and economic diplomacy to promote US business in the region.

Uh, I would ask you, and I will submit this uh in writing, uh, what can we do to, what can Congress do uh to uh to counteract the the Chinese investment uh in uh in Serbia? I'd like to move to uh Kosovo and NATO uh because I believe that is the most important element of stability in this region is Kosovo it um ascension to NATO uh second only in immediacy to the K four issue uh but we have four NATO members, Greece, Romania, Slovakia and Spain as you know that are non-recognizers. Uh how does how is the Trump administration working with the non-recognizers realizing that this is a key point of stability in this entire region.

Thank you, Mr. Chairman, for that question. It is an important one as well. Uh, the United States uh supports the international recognition of Kosovo, and we continue uh those conversations uh including with NATO allies that are non-recognizers. Uh, I also want to say that uh in terms of making the case, uh a return to the normalization dialogue that you uh dialogue between S- Kosovo and Serbia would be uh would be useful in in in in in, in in our advocacy for uh for um recognition. And uh we do urge uh political leaders on both sides to return to those uh talks, uh without preconditions.

Uh again I will put it in writing that I w- after after we get through this next election season in in the region I think we ought to uh consider how we move that process forward. K four, I I have uh time for one more question. Uh, I can't tell you how important K four is both to the Serbian government and to the Kosovo government. Both of them for different reasons, of course. Uh, consider K four and not just K four, but the US presence in K four absolutely essential. Uh, can you address the US policy not the Department of War planning, but the US policy from the State Department in terms of K four.

Thank you, Mr. Chairman. Uh, I agree with you. Uh, K four is an important uh force for stability in uh in the region. Um, I I will just share that the size and scope of K four is determined by uh NATO's, North Atlantic Council. It's it's determined at thirty-two. Uh, we do support uh a force size that's needed to accomplish K four's uh its goals as conditions permit on the ground. And uh as we look at US force contribution, we do look at US policy priorities, mission needs, and partner capability. But the United States is is uh providing a significant and important contribution to K four right now.

Uh yes they are, and I would ask you for State Department's support uh because if we move this from a requirement in in the Pentagon to a requirement in the European uh command, uh it will show decreased emphasis on the US participation in K four. Um so I would ask for your help if that does uh come about, because this needs to be a US policy priority uh supported by the State Department. With that uh I yield the remainder of my time and I now recognize Ranking Member Keating for five minutes.

Thank you, Mr. Chairman. Uh Uh, for the record, I want to uh submit the report uh I issued this morning uh to the committee.

Without objection.

Thank you. I want to begin with uh uh Dodek's recent behavior. In February of this year, Dodek described Dayton as " unsalvageable" and said the high representative had no legitimacy. Later in February, he referred to Bosniaks as " enemies", and and he uh used Islamophobic slurs uh in the process. In May of this year, the R S National Assembly passed legislation calling for closure of the office of the high representative in May. Uh, also Dodik took two trips to Moscow where he echoed Russian talking points. Do you believe that this behavior is consistent uh with the Dayton Peace Accord?

Well thank you, uh, Ranking Member Keating, uh, what I wanna assure you is that the United States supports the peace and stability that the Dayton Peace Accord, uh, has afforded us all. And, uh, we oppose rhetoric, uh, for political gain and we're urging de-escalation. So thank you for for sharing.

So would, so would you, uh, urge reinstatement of those sanctions on him because he's just, uh, continued to do what he did before and the purpose of sanctions is to alter behavior.

Thank you, uh, Ranking Member Keating for that question. Uh, I think it's a, it's a separate question whether sanctions should be applied. I will say that we are focused on actions as opposed to rhetoric. I also would just note here that, uh, right now, uh, Mister Dodek, uh, has stepped down from, uh, his from office. He holds no, uh, political office at this time and he's not running for political office.

But he's, he continues this rhetoric, uh, to this time and this Congress passed the Western Balkans Democracy and Prosperity Act which calls for sanctioning of individuals doing just what he is doing. So, uh, I don't think the issues that you mentioned are different. I think they're connected, obviously. Uh, and would hope that, uh, the department does, uh, you know, echo calls to reinstate those sanctions. They mean nothing, uh, if they're taken away and then he continues the very same behavior he did before. Uh, I just wanna move also to, uh, the issue of that I addressed in my opening remarks about the gas pipeline uh that's being built uh you know the embassy itself tweeted publicly about its hope that a US company would uh win the contract you in your opening remarks said the administration's policy is for local solutions to local problems so uh after initially just advocating which I agree with for a southern interconnection gas pipeline Uh, then the embassy changed and said there should be a US company that's involved, and just four days later, that company was formed by Joseph Flynn and Jesse Benal, uh, and they have no experience whatsoever in the region, no experience with the pipeline, uh, and they're written into the contract. How do you explain the embassy's change? And, and, and the difference from your opening statements, that these should be local problems, And and this is obviously interjecting US politics and US uh into this into this important project. How do you explain that change? And how do you uh explain the advocating of a company with no experience that was just four four days after that pronouncement by the embassy?

Chairman Keating, I I really appreciate the question and the chance to to clarify. I also appreciate in your opening statement that you you appreciate the signe- the strategic significance. of the southern interconnection, uh which would uh provide for US energy abundance uh to the region in a way that um it could increase energy security for Bosnia and Herzegovina. Uh the United States uh this this project has existed on the books for approximately uh a decade. It was uh in twenty twenty four that the Bosn the government the Federation government decided to move forward with the project with legislation.

Yeah.

the the

I sincerely uh apologize for interrupting but I've got less than a minute.

after yeah

Uh I wanna cut to this issue directly, I mean are you aware of any discussions along these lines of US agencies or quasi-agencies being involved in funding? Has there been since the sudden change of uh you know it's a US company after you saying that it's local solutions that we should be fostering, uh and uh this four day uh miraculous uh uh coincidental, I don't think it is, uh formation uh of a new company with no experience getting this contract. Is there also any discussion, and and it's something we should have oversight over, if there is, with funding from US entities at all towards towards this uh and and towards this company.

I can remember, Keating, what I can just say is that over many years the United States has provided technical expertise to the federation in the design of the southern interconnection project uh I'm not aware of any funding or or direct assistance we did advocate for a US solution and just to cut to your question about AAFS capabilities uh it you know it's a standard globalized u globally used business structure to pool financial technical and operational expertise for large infrastructure projects ultimately the decision to go with an American solution and with this particular company to enter into contract negotiations with their company was a sovereign decision of the federation.

I think it demands oversight. I yield back. And now recognize uh the member from South Carolina, Mister Wilson.

Thank you very much, Mister Chairman, and indeed, thank you for being here today. Uh, I am grateful to have introduced with ranking member uh Bill Keating and Chairman Keith Self legislation promoting fair and free elections in serbia we actually have a uh support letter from fourteen different serbian civil society organizations supporting free elections in serbia i ask the animal's consent this be included in the record

without objection

additionally i'm very grateful that uh tomorrow uh there will be a briefing on the serbia's upcoming elections at nine thirty in the morning everyone is invited room two ten canton house office building And it's not to take sides in the election, but to promote fair and free elections. And I indeed ask that this also be included in the record.

Without objection.

There are legitimate concerns that the October twenty-fifth election in Serbia will not be free and fair. There are indications that Vucic's security state interest with uh assistance from War Criminal Putin are working to rig the election such as fake identities, fake accounts, consolidating media under state control. The Trump administration's approach to Serbia via this strategic dialogue is very important. How can we effectively communicate to the Vucic regime that smothering freedom of speech and assembly and attempting to rig the election will strain US-Serbian relations?

Well, thank you, Representative Wilson, for that important question. Uh, we are watching carefully the, uh, preparation for Serbia's elections. With respect to the US, uh, Serbia's strategic dialogue. Uh, this was the first ever. It m it was, as I mentioned in my opening statement, an important vehicle to advance our security cooperation, our economic cooperation, and even our people-to-people ties. Uh, the the the the effort here is to invest in in a relationship that for too long was, uh, was marked by by isolation and and and a lack of communication. We would like to make Serbia we would like to make the United States the partner of choice in Serbia.

Uh, I appreciate the Department of Choice's message, but uh indeed uh I was an election observer, the first free elections in Bulgaria with the International Republican Institute and uh National Democrat uh Institute. And so uh over and over again uh we can have a role monitoring and promoting fair and free elections. Additionally, um it's been reported that corruption, organized crime and election integrity in Albania is being affected by the, uh, Eddie Rama government. Uh, in fact, uh promoting the creation of a narco-trafficking cabal. It's been uh over the years, the United States has actually been very successful with anti-crime organized um drug trafficking authorities to address the issue. What is the administration doing in response to the Albanian narco-trafficking?

Representative Wilson, thank you as well for that important question. I can assure you that the the United States continues to work with uh the Albanian government to counter uh transnational criminal organizations that operate from there. These these organizations have international links with uh cartels here in the Western hemisphere. In particular we found that the uh special structure for combating corruption in in organized crime has been relatively effective in addressing uh some of the issues that you raised.

It's exciting to me to see the most slavish uh communist country uh during the Cold War now is free. And so we want Albania to succeed. With that in mind, too, uh, as you talk about partner of choice, uh, it needs to be by, uh, actions, not words. And indeed, Serbia now has the largest oil company, NIS, being owned by war criminal Putin. We have Serbia port- purchases from war criminal Putin, its weapons systems. We have Chinese, uh, Communist Party tech company Huawei, uh, supports camera surveillance in Serbia's three largest cities. Serbia purchased Chinese radar and air defense systems. Incredibly, Serbia sent a delegation to the funeral of dictator uh Khomeini in Tehran, alongside the uh delegations of Russia and China. Uh, these are actions that do not show uh a uh effort to uh to be part of Western civilization, uh but they show subservience to war criminal Putin. And so how is this being addressed?

Well, thank you, uh, Representative Wilson. I can assure you that the United States continues to advocate heavily for U. S. business and U. S. solutions. Uh, on the positive side, what I can, I'd like to note is that this year for the first time in its history, Serbia held a joint mili- military exercise with NATO.

Well, and I need to let you know they also had a joint military s- exercise with the Chinese People's Rep- uh, Liberation Army. Uh, and so, hey, th- this is so serious and, uh, and, uh, and many of us, uh, Karlos and myself, are concerned about diesel prices and, uh, having, uh, Serbia's oil company owned by War Colonel Putin, affects diesel prices uh in Texas and South Carolina, even Massachusetts. Thank you very much.

I, if I may just quickly to to to on on the um NIS, you you mentioned the oil refinery that's Russian owned. Uh, we are working to eliminate Russian control and ownership of NIS. Okay, go ahead.

They're actually increasing percentage of ownership. Thank you.

Now recognize the member from California, Mr. Costa.

in the balkans because it seems like a host of contradictions maybe you can make that clear but you just commented on this uh russian uh involvement with this oil refinery i i i mean uh this really uh begs the question president uh in the last twenty four hours urged the ukrainians to uh to lay off of the russian refineries because of the increased cost of of of diesel It's absurd. It's an absurd request. Whose side is he on? I mean, I was in Ukraine on Friday uh and saw multiple bombing activities taking place, malls, gas stations, uh the train in which our former CIA director was uh in front of him was attacked, along with the former Prime Minister from the UK, Boris Johnson. Whose side are we on? This is about good and evil. And you're you're involved in and and somehow condoning this involvement or ownership of this refinery? When these brave Ukrainian people are fighting for their sovereignty and their democracy? It makes no sense. Uh, eh what has the department done to implement the Western Balkans Democracy and Prosperity Act? Including the anti-corruption initiatives, and technical assistance and sanctions. Um, and government oversight. How how is this administration with the Western countries supporting their EU membership aspirations that further our interests, US interests in the region, by expanding opportunities for our businesses in line with the act?

Well, thank you, Representative Costa. Uh, let me just uh reassure that when it comes to the uh, the Russian owned uh oil refinery in Serbia, United States sanctioned uh that entity in in twenty twenty five. Uh right now I can share that um there's a Hungarian oil company that's in negotiations to to purchase that and remove Russian control from it.

And we're looking at another sanctions bill potentially, and frankly I think the President has more authority to issue sanctions in this instance. But go ahead and answer the question.

Sure, and with respect to sanctions, I I'll be the first to say we retain sanctioned authorities and we will act if uh if if uh stability is threatened or unnecessary to secure US interests. Uh, the United States

You believe you have sufficient authority now.

I believe Congress has given that sufficient authority and um and we continuously review actions that may warrant sanction. The authority you have given us is also, I think, served as a deterrent effect from de-stabilizing actions in the region. Um, and we'll continue, I want to assure, we'll continue to engage Congress as we implement relevant statutory requirements of the NDAA.

Does the administration support membership of the Western Balkan countries in the EU?

Uh, thank you, Rep- Representative Costa, for that question. What, and, and with respect to the European Union, of course we're not a member. Uh, we believe it's a sovereign decision for the countries of Western Balkans to make, uh, in coordination with, um, with, uh, the European Union.

Well, certainly we can be helpful in that process. I mean, we last I checked still had a uh, a, a serious, uh, participation in NATO and certainly by way of that, our EU, uh, allies. Right?

Well, again, we're not a member of the European Union.

No, I know we're not a member. You don't have to remind me of that fact.

No. So, uh, you know, right now, um, the United States, uh, supports the reform process that, uh, creates a better business investment climate because that has, uh, uh, the, that has the advent- the advantageous effect of of of giving the United States the opportunity to help generate prosperity in the region.

So could you summarize for me what the overall strategy is when it comes to the, uh, Balkans and our attempt to maintain our, uh, influence in light of the, uh, ongoing activities by both Russia and China?

Absolutely, uh, Representative Costa. Our our strategy is three-fold. It's to, um, promote stability in the region, it's to advance economic cooperation in the region, and it's to um, it's to counter transnational threats. And this is consistent with uh our overall mandate given to us by Secretary of State, Rubio, to make the United States safer, more secure, and more prosperous.

Well, those are all great sound bites, but I, uh, what is your biggest challenge in dealing with that, those folks in in that has had a long history obviously, going back to Yugoslavia and and and Tito? But the the fact is is that the efforts of Russia and China still are, I I one could argue that they in many ways are making far more progress than we are.

Uh, thank you for that question, Representative Costa. What I can tell you is that the United States continues to work with all those countries of the Western Balkans to try to ensure that we are the partner of choice. And with respect to to unsafe investments, we we're we're promoting vestment screening. Uh, we also prevent uh, we also promote uh, procurement uh, procedures that would eliminate unsecure vendors from geopolitical rivals. So we're engaged every day, I can assure you, our teams are engaged every day to advance US interests, to advance the interest, to advance the interest of the US American people in, in those countries.

Well, I'm not so sure I share uh, that view of success, but more to be continued. Thank you very much, Mr. Chairman.

Now I recognize the member from California, Miss Kim.

Thank you, Chairman. Thank you for being here. I know uh Chairman self uh mentioned uh China's investment in Serbia earlier, so let me pick up on that. Er uh Serbia's ties with China have expanded in recent years, and Serbian President uh Vucic said, " We have very good cooperation between our countries and we wanna bring it to a higher level if possible." Well notably, Serbia's importation concerning levels of weapons from China, ranging from long-range air-to-surface ballistic missiles to advanced surface-to-air missiles. Along with this, participation in joint military drills with China represents unprecedented strategic behavior for an EU candidate nation. Mister Lotharen, um, given these concerning developments, how is the State Department addressing the risk of Serbia's military alignment with Beijing, to US security interest and stability in the Western Balkans.

Representative Kim, uh, you raised some very important issues and, and we share your concerns about, uh, Serbia's engagement, especially defense cooperation with China. As you mentioned, uh, their purchase of air defense, uh, um, uh, equipment, they are the only, uh, European country to buy such equipment in Europe. Uh, what are we doing? Uh, the United States continues to engage, uh, with Serbia at a high level to, to make us the partner of choice. And uh, as I mentioned earlier,

Right, I know w-

the United States uh uh lauds the fact that

Can you talk about some specific steps that United States is taking to address that security risk with Belgrade and our European allies? I know we're taking steps and it is important what you are saying, but again I think we are uh asking for some specifics.

Yeah, uh the United States uh supported the NATO exercise in Serbia. I will also mention that the Ohio National Guard uh enjoys a state part- celebrating twenty years of state partnership program, is also a a a vector for exercising and promoting US influence in Serbia in terms of security cooperation.

Thank you. You know, in July, Secretary Rubio and Minister of Foreign Affairs, uh Mark Jurek, led the first US-Serbia strategic dialogue here in Washington DC, and the initiative represents a wide range of areas of cooperation in energy, defense and technology. So can you explain the long-term objectives that is associated with that effort, and where there is potential roadblocks for future cooperation, including Serbia's extensive relationship with Russia and China? Please be as specific as possible.

Thank you. Sure. Uh, well, Representative Kim, I can tell you that the first ever US- uh, Serbia strategic dialogue advanced uh energy cooperation between our two countries, including uh moving forward on important hydropower project. It also expanded a Fulbright cooperation between our two countries, with Serbia contributing more to that. Uh in addition, Serbia plans to open two new consulates in the United States. So we are broadening that that that bilateral relationship between our two countries. As you correctly point out, uh military cooperation with China poses risks. It poses risks to our ability to to foster defense

Mm.

cooperation with Serbia, it poses risks to interoperability.

So how do you plan on addressing those roadblocks and the challenges you are mentioning?

Representative Kim, we we plan to engage uh in vigorous diplomacy and and we continue to do that uh both here in Washington and through our embassy.

OK. Well, that's all I have for you. I'll yield back. Thank you.

Thank you.

Thank you. And I recognize the member from Nevada, Miss Titus.

Well, thank you, Mr. Chairman. Uh, I'd just like to take a minute to talk about the what happened last month, when Ratko Milotic uh passed away. He was a war criminal known as the Butcher of Bosnian. He died in The Hague, where he'd been serving a prison sentence after he was convicted by the International Criminal Tribunal for uh the former Yugoslavia, of crimes against humanity, war crimes and genocide. He played a leading role uh in the massacre where approximately eight thousand Bosniak men and boys were killed. I ask unanimous consent uh, Mister Chairman, to enter a letter uh into the record from Bosnia and Herzegovina's foreign minister detailing his horrors and the government's stance on circumstances surrounding the transfer of his body back to Serbia.

Without objection.

Thank you. You. I think that Milotic's death would have been a sober moment of reflection for the Serbian government, but instead it's been just the opposite. Serbia chose to treat Milotic like a national hero. His coffin was flown on a government plane from the Netherlands back to Serbia. He was carried off the plane by soldiers. Thousands of people came out to honor him. His casket featured parts of his uniform and medals he had worn. when he was conducting the genocide. And the head of the Serbian Orthodox Church says, we know that his name will remain deeply etched in the memory and prayers of the people, who feel and nurture a deep sense of gratitude towards him. Now, this shouldn't come as a surprise to us because Alexander Vucic is a right-wing nationalist, who's made genocidal comments himself. For example, he said, for every Serb killed, we will kill one hundred Muslims. So obviously this kind of ultra-nationalist fervor is good for politics for him and his party back home. So I would ask you, Mister Lawton, thus far the State Department, unlike the EU, has remained quiet about this whole episode. Uh, do you think the Serbian's government glorified a a glorification of a convicted war criminal and mastermind of one of the worst genocides in Europe since World War Two? is appropriate behavior.

Representative Titus, uh, let me go on the record for you right here. Uh, Ratko Milotic is, he served, you, as you rightly pointed out, he served a life sentence, died in jail, he was convicted for genocide, crimes against humanity, and war crimes. I wanna assure you that we recognize the Shrubber-Nitzsch genocide, uh, we remember the victims, and we reject a glorification of war criminals. A tragedy and crimes of the nineteen nineties They shouldn't be turned into political theater. That's offensive to the memory of the tens of thousands of victims and the millions who lived through that vi- that period. Regional stability under has been undermined far far too long by those who wanna re-litigate the past for selfish gain, rather than work to build a more stable and prosperous prosperous future.

Well, I appreciate you saying that now. And and you have said before about the regional stability, I think your own words which you submitted to us, is that the State Department's ready to work with those prepared to move into the future, and has little interest in those who would undermine stability for selfish purposes, or who re-litigate decades-old grievances. But it that's precisely what Serbia is doing. So if we c- don't condone that, why aren't we taking some position? Kind of like the EU, they publicly have uh condemned the glorification and the EUPU enlargement commissioner Marta Kosk's cancelled her trip because of this, or does secretary Rubio plan to do anything to publicly condemn this, or say we don't support it or don't approve of it?

Well, representative Titus, uh, you know, uh, we don't respond to every every international development in public, uh, but I can assure you that our diplomatic dialogue remains robust and and Thanks to your question, I hope I've put the US position clearly on the record.