The former Director of the Office of Foreign Assets Control (OFAC) at the U.S. Department of the Treasury, John Smith, commented on Friday that recent amendments to President Joe Biden’s executive order on the Western Balkans indicate continued U.S. concerns over the region's situation.
Speaking to the Bosnian Service of Voice of America, Smith explained that these changes underscore the United States’ belief that sanctions—or even the threat of sanctions—can advance U.S. national security and foreign policy objectives in the Balkans. “The absence of immediate designations under the new executive order suggests that the U.S. government views sanctions as a tool to promote strategic goals in the region,” Smith said.
In a letter to Congress on Wednesday, President Biden announced his decision to maintain the executive order on the Western Balkans, originally introduced in 2001 and amended in 2003 and 2021. Biden cited ongoing challenges, including “violent extremist acts, obstructive actions, and the overall situation in the Western Balkans, which hinder progress toward effective governance, democratic development, and full integration into transatlantic institutions.” These issues, the letter emphasized, continue to pose an “unusual and extraordinary threat to U.S. national security and foreign policy.”
Broader Scope and Enhanced Sanctions
Smith noted that the updated executive order expands its scope to include not only completed actions but also attempts to undermine regional stability, as a basis for designation. The changes also introduce new categories for sanctions, such as membership in sanctioned entities, shared ownership or control of entities with designated individuals, and the inclusion of spouses or adult children of designated persons.
“These updates suggest that the U.S. government has specific individuals in mind who may be considered under the new measures,” Smith said. He added that the changes are a clear signal to targeted individuals to alter their behavior or risk facing U.S. sanctions.
Historical Context and Regional Implications
The original 2001 executive order, issued by then-President George W. Bush following the Balkan conflicts, aimed to address violent extremism, violations of the Dayton Accords, and UN Security Council Resolution 1244 concerning Kosovo. It sought to safeguard stability in the region by targeting actors and actions that could disrupt peace-building efforts.
The expanded measures reflect the U.S. government’s evolving approach to addressing persistent issues in the Western Balkans, including corruption, political obstruction, and destabilizing activities. By broadening the criteria for sanctions and signaling its readiness to act, the U.S. is reinforcing its commitment to promoting stability, democratic governance, and regional integration into transatlantic institutions.
Smith’s insights highlight the strategic use of sanctions not just as punitive measures but as tools to influence behavior and support broader foreign policy objectives. The amendments also reaffirm the U.S.'s active engagement in the Western Balkans, aiming to foster long-term stability and alignment with democratic values.