Kosovo continues to face serious financial and developmental consequences as a result of the European Union’s punitive measures, imposed since June 2023. This was revealed in the latest report by the GAP Institute, titled “The Financial Impact of EU Sanctions on Kosovo.”
According to the report, approximately €613.4 million worth of projects have been suspended or indefinitely delayed, while €7.1 million have been permanently lost due to missed deadlines for initiating procedures related to the respective projects.
The sanctions have directly affected EU–Kosovo bilateral relations, halting key processes such as the suspension of work under the Stabilisation and Association Agreement (SAA) until May 2025, freezing of funds from the Instrument for Pre-Accession Assistance (IPA), exclusion from proposal reviews within the Western Balkans Investment Framework (WBIF), and non-participation in high-level events—except those related to the northern situation and regional integration.
The report highlights that the EU measures have hit hardest in areas crucial for the country’s development:
Of the total affected amount, about €218 million are projects supported through IPA II and IPA III, while €395.5 million fall under the WBIF. Funding was to be provided via grants and loans, including around €421 million from the EU, €162 million from international financial institutions, and €31 million in self-financing.
Losses in Growth and Well-Being
GAP emphasizes that these suspensions and delays translate into missed opportunities for economic growth, reduced citizen welfare, and a weakened European integration outlook for Kosovo.
“The aim of this report is to provide an overview of the financial support Kosovo has received from the EU and to analyze the impact of the punitive measures, highlighting the losses and developmental consequences resulting from the suspension of projects and funds,” the publication states.