Blocking Property of the Governments of the Federal Republic of Yugoslavia (Serbia and Montenegro), the Republic of Serbia, and the Republic of Montenegro, and Prohibiting Trade Transactions Involving the Federal Republic of Yugoslavia (Serbia and Montenegro) in Response to the Situation in Kosovo

This executive order expands sanctions against the Federal Republic of Yugoslavia (Serbia and Montenegro) by blocking all government property in U.S. jurisdiction and prohibiting virtually all trade transactions involving the country, while carving out humanitarian exceptions for agricultural commodities, medicine, and medical equipment. It amends and strengthens Executive Order 13088 from June 1998 in response to the Kosovo crisis.

Federal Register Open PDF 64 FR 24021

Impact dates

May 1, 1999
EO effective date - all blocking and trade prohibitions take effect

Key directives

Block all property of FRY, Serbia, and Montenegro governments in U.S. jurisdiction or control of U.S. persons
Prohibit exportation/reexportation/sale/supply of all goods, software, technology, services to FRY governments
Prohibit importation of any goods, software, technology, services from FRY or government-owned entities
Prohibit any transaction or dealing by U.S. persons for exportation to or from FRY regardless of origin
Authorize commercial sales of agricultural commodities, medicine, medical equipment with anti-diversion safeguards
Give special consideration to Montenegro circumstances in implementation
Give special consideration to humanitarian needs of Kosovo refugees and civilians

Who is ordered

Timeline

Immediate

Property blocking takes effect May 1, 1999 at 12:01 a.m. EDT
Trade prohibitions on exports, imports, and transactions take effect
Prior contracts and licenses overridden by new prohibitions

Near term (90d)

Treasury/State implementation of special consideration for Montenegro
Humanitarian licensing for agriculture and medicine to begin
Regulatory implementation of safeguards against diversion

Long term

Sustained economic isolation of FRY pending policy change
Potential humanitarian relief channel establishment
Ongoing sanctions enforcement and evasion monitoring

Risks & tensions

Vague 'special consideration' language for Montenegro creates implementation uncertainty
Humanitarian carve-out requires complex safeguards against military diversion
Retroactive override of prior contracts and licenses may create legal disputes
Broad 'any transaction' prohibition in 2(c) creates compliance challenges for U.S. persons globally
No explicit sunset or review mechanism specified