	Background

Since FY2001, Congress has conditioned part of U.S. aid to Serbia after a certain date of the year on a presidential certification that Serbia has met three conditions: they are cooperating with the International Criminal Tribunal for Yugoslavia (ICTY); ending support for separate Bosnian Serb institutions; and protecting minority rights and the rule of law, including the release of political prisoners. Serbian cooperation then decreased significantly. On May 31, 2006, the Administration, in compliance with the certification provision in the FY2006 foreign operations appropriations bill, suspended $7 million in U.S. aid to Serbia, due to its failure to cooperate with the ICTY. More important, however, may be the impact of international efforts to determine the status of Serbia's Kosovo province. The United States and its key European allies are likely to recognize Kosovo's independence in early 2008. The Serbian government and parliament have threatened to sharply downgrade relations with any country that does so. Therefore, if the United States and its allies were to recognize Kosovo, Serbia cooperation with the ICTY might cease and Serbia's prospects for Euro-Atlantic integration would suffer a serious blow, at least for a time.
Since FY2001, Congress has conditioned U.S. aid to Serbia on a presidential certification that Serbia has met certain conditions, including cooperation with the International Criminal Tribunal for the Former Yugoslavia (ICTY). The second session of the 110th Congress may consider similar certification provisions in the FY2009 foreign aid legislation. Supporters of aid conditionality say such provisions may have spurred Serbia's cooperation with the Tribunal. Serbian cooperation with the ICTY may also be affected by the status of Serbia's Kosovo province. The Serbian government and parliament have threatened to sharply downgrade relations with any country that recognizes Kosovo's independence. If the United States and most European Union countries recognize Kosovo, as they are expected to do in early 2008, Serbia cooperation with the ICTY might cease, at least for a time. This report will be updated as events warrant. For more information on Serbia, see CRS Report RS22601, Serbia: Current Issues and U.S. Policy, by [author name scrubbed].