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PRISTINA, Kosovo — The European Union reprimanded Kosovo on Tuesday for the unilateral closure of six branches of a Serbian-licensed bank, saying the move would have a negative impact on the lives of the ethnic Serb minority living in northern Kosovo and the normalization talks between Kosovo and Serbia.
On Monday, Kosovo police closed the branches of the Postal Saving Bank in accordance with the decision to ban the use of the Serbian dinar in the country.
From February 1, the government demanded that areas in Kosovo dominated by the ethnic Serb minority adopt the euro, which is used in the rest of the country, and has abolished the use of the Serbian dinar.
Pristina postponed the measure for about three months, under pressure from the EU and the United States, because it feared the decision would have negative consequences for the ethnic Serb minority in northern Kosovo.
An EU statement from Brussels, emailed to The Associated Press, deemed the move “escalatory… against the spirit of normalization,” adding that such “uncoordinated actions” by Kosovo would “endanger the chances of reconciliation” endanger'.
Brussels and Washington are putting pressure on both countries to implement the agreements reached by Serbian President Aleksandar Vučić and Kosovo Prime Minister Albin Kurti in February and March last year.
EU-facilitated normalization talks have failed to make progress, especially after a gun battle last September between masked Serb gunmen and Kosovo police, which killed four people and raised tensions.
Most of Kosovo uses the euro, even though the country is not part of the EU. Parts of northern Kosovo, populated mainly by ethnic Serbs, continue to use the dinar. Many Serbs there depend on financial support from the Serbian government, often in cash dinars.
“In the continued absence of sustainable alternatives, this will have negative consequences for the daily lives and living conditions of Kosovo Serbs and other communities eligible for financial transfers from Serbia,” the EU statement said.
Serbia and Kosovo's chances of one day joining the EU are being jeopardized by their refusal to compromise, said Josep Borrell, the bloc's foreign policy chief.
The EU again urged Kosovo and Serbia to return to the negotiating table.
Serbian forces fought a war with ethnic Albanian separatists in the then province of Kosovo from 1998 to 1999. About 13,000 people, mostly ethnic Albanians, died until a 78-day NATO bombing campaign pushed Serb forces away. Kosovo declared independence in 2008, which Belgrade does not recognize.