[Senate Hearing 118-61]
[From the U.S. Government Publishing Office]


                                                        S. Hrg. 118-61

                      ASSESSING U.S. POLICY TOWARDS 
                          THE WESTERN BALKANS

=======================================================================

                                HEARING

                               BEFORE THE

                     COMMITTEE ON FOREIGN RELATIONS
                          UNITED STATES SENATE

                    ONE HUNDRED EIGHTEENTH CONGRESS

                             FIRST SESSION

                               __________

                              MAY 18, 2023

                               __________

       Printed for the use of the Committee on Foreign Relations
       
[GRAPHIC NOT AVAILABLE IN TIFF FORMAT]      


                  Available via http://www.govinfo.gov
                  
                                __________

                                
                    U.S. GOVERNMENT PUBLISHING OFFICE                    
53-053 PDF                 WASHINGTON : 2023                    
          
----------------------------------------------------------------------------------- 

                 COMMITTEE ON FOREIGN RELATIONS        

             ROBERT MENENDEZ, New Jersey, Chairman        
BENJAMIN L. CARDIN, Maryland           JAMES E. RISCH, Idaho
JEANNE SHAHEEN, New Hampshire          MARCO RUBIO, Florida
CHRISTOPHER A. COONS, Delaware         MITT ROMNEY, Utah
CHRISTOPHER MURPHY, Connecticut        PETE RICKETTS, Nebraska
TIM KAINE, Virginia                    RAND PAUL, Kentucky
JEFF MERKLEY, Oregon                   TODD YOUNG, Indiana
CORY A. BOOKER, New Jersey             JOHN BARRASSO, Wyoming
BRIAN SCHATZ, Hawaii                   TED CRUZ, Texas
CHRIS VAN HOLLEN, Maryland             BILL HAGERTY, Tennessee
TAMMY DUCKWORTH, Illinois              TIM SCOTT, South Carolina
                Damian Murphy, Staff Director          
       Christopher M. Socha, Republican Staff Director          
                   John Dutton, Chief Clerk          



                              (ii)        

  
                        C  O  N  T  E  N  T  S

                              ----------                              
                                                                   Page

Menendez, Hon. Robert, U.S. Senator From New Jersey..............     1

Risch, Hon. James E., U.S. Senator From Idaho....................     3

Chollet, Hon. Derek, Counselor, United States Department of 
  State, 
  Washington, DC.................................................     4
    Prepared Statement...........................................     6

Escobar, Gabriel, Deputy Assistant Secretary, Western Balkans, 
  Bureau of European and Eurasian Affairs, United States 
  Department of State, 
  Washington, DC.................................................     8
    Prepared Statement...........................................     9

                                 (iii)

 
                     ASSESSING U.S. POLICY TOWARDS 
                          THE WESTERN BALKANS

                              ----------                              


                         THURSDAY, MAY 18, 2023

                                       U.S. Senate,
                            Committee on Foreign Relations,
                                                    Washington, DC.
    The committee met, pursuant to notice, at 10:48 a.m., in 
room 419, Dirksen Senate Office Building, Hon. Robert Menendez, 
chairman of the committee, presiding.
    Present: Senators Menendez [presiding], Cardin, Shaheen, 
Murphy, Kaine, Booker, Van Hollen, Risch, and Ricketts.

          OPENING STATEMENT OF HON. ROBERT MENENDEZ, 
                  U.S. SENATOR FROM NEW JERSEY

    The Chairman. This hearing of the Senate Foreign Relations 
committee will come to order. Now, the apologies of the chair 
for starting a little late as a result of a conflict that I 
had.
    Nearly 30 years after the Dayton Peace agreement, we have 
yet to see its full potential bear out. While we have welcomed 
two-thirds of the Western Balkan countries as NATO allies, 
European Union membership seems ever elusive. Economic growth 
is uneven across the region, and certain power-hungry leaders 
still rely on ethno-nationalist grievances to undermine 
democracy, the rule of law, and lasting stability.
    The war in Ukraine has reinvigorated the imperative of 
supporting European countries' efforts to make the necessary 
reforms and commitments to join the European Union. We must 
seize this moment to promote new inroads with partners with 
whom Russia has traditionally held significant political, 
military, and economic influence.
    To my mind, the crux of stability in the Western Balkans 
rests with the resolution of the conflict between Kosovo and 
Serbia. We need responsible leaders willing to make and uphold 
significant commitments for their populations.
    Kosovo must seize this opportunity of renewed engagement 
and work with European partners to move forward. However, I 
personally do not believe that we have equal participants 
acting in good faith. In February, as part of the ongoing 
Brussels facilitated dialog, Serbia and Kosovo verbally agreed 
to an agreement negotiated by the European Union.
    Shortly thereafter, Serbian President Vucic made a public 
speech disagreeing with the contents of the agreement and 
refusing to sign because he still does not recognize Kosovo's 
independence. This is part of a pattern of Vucic saying one 
thing to placate Western leaders and saying another to the 
Serbian people through his state-controlled media.
    Controlling the information space and cracking down on 
civil society, President Vucic continues to embrace nationalist 
Serb narratives, perpetuating his vision of ``Srpski svet,'' a 
great Serbian nation, much like Putin's vision of a greater 
Russia. Indeed, Serbia's President has boasted about his close 
personal ties with Putin. He has flown to Moscow for trade 
talks, refused to join European partners in imposing sanctions 
on Russia.
    Today, I would like to hear from our witnesses on what the 
plan is going forward. Most of what I see is pressure on Kosovo 
for the Association of Serb Municipalities, which I do 
recognize Kosovo had previously agreed to.
    It seems to me there is little to no pressure on Belgrade, 
nor any real plan or guarantee that the Association of Serb 
Municipalities would not become another Republika Srpska, while 
seeing the dangerous implications of--that we are seeing the 
dangerous implications of in Bosnia and Herzegovina right now.
    I see little pressure on a leader about whom The New York 
Times magazine recently painted a scathing picture of violence 
and deep interconnectedness with Serbia's organized criminal 
gangs. I hope you can help me understand what the plan is.
    I would also ask that you speak frankly not only about 
Kosovo and Serbia's path to normalization, but about 
normalization of North Macedonia, Albania, Montenegro, and 
Bosnia-Herzegovina, as well. In Bosnia, I worry that the Office 
of the High Representative's recent electoral reforms could be 
reinforcing rather than diffusing, ethnic tensions.
    We need to make sure that the rights of Jews and Roma and 
other minorities are protected, because while local leaders 
engage in destabilizing rabble-rousing to further their own 
power, Moscow has long worked to exploit the historic ethnic 
fault lines of the Balkans for its own advantage.
    If Serbia is ever going to join the European Union, it is 
going to need alternatives to escape Putin's weaponization of 
energy. Indeed, one of the best ways to help the Balkans and 
Central and Southern Europe to become energy independent from 
Russia is to capitalize on the clean energy potential of the 
Eastern Mediterranean.
    That means continuing support for interconnectors that run 
straight to the Western Balkans and fault stream unified 
regulatory regimes. Of course, as we work with our partners to 
move them away from Russia, we do not want them to run towards 
China in the process. The U.S. should not take a back seat 
here.
    This region remains a stark reminder of how a lack of 
engagement allows the breeding of ethno-nationalist tensions, 
but we know that when we are engaged, good things can happen. 
If we are clear-eyed and pragmatic in our approach, we have the 
opportunity to make real progress across the Western Balkans.
    With that, let me turn to the Ranking Member Senator Risch 
for his opening statement.

               STATEMENT OF HON. JAMES E. RISCH, 
                    U.S. SENATOR FROM IDAHO

    Senator Risch. Well, thank you, Mr. Chairman. Thank you to 
our witnesses for appearing here today. We appreciate that. As 
the chairman has pointed out, a lot of challenges here that we 
need to deal with.
    The countries in the Balkans have made a lot of progress 
since the end of the terrible wars of the 1990s, but keeping 
the peace in that volatile region has proved to be very 
difficult and the process of reconciliation has faced continued 
setbacks. Thankfully, there appeared to be opportunities for 
progress.
    After years of effort, Montenegro and Albania are taking 
steps towards greater integration with the West in realizing 
their goal of membership in the European Union. In efforts to 
advance its own EU aspirations, North Macedonia signed the 
Prespa Agreement and has made significant concessions to 
resolve its long-standing dispute with Bulgaria.
    It is now incumbent upon Bulgaria to honor its word and 
support a swift EU accession process for North Macedonia. The 
benefits of including the Balkans in alliances is now as clear 
as ever. In 2019, North Macedonia joined NATO and immediately 
began making important contributions.
    North Macedonia and many of our Balkan NATO allies have 
even contributed large portions of their military stocks to 
help Ukraine defend itself from Russia's murderous conduct. 
There have also been signs of progress in bringing Kosovo and 
Serbia to an agreement that will help settle the simmering 
tensions that have persisted for over 20 years.
    I know both of our witnesses have spent a lot of time on 
this issue, and I look forward to hearing from you about the 
U.S. role in trying to resolve this conflict once and for all. 
I also want to hear from you about the progress that has been 
made in building energy security in the Balkans.
    This region has a historic dependence on Russia for its 
energy, but I am heartened by recent developments such as the 
opening of the Greece, Bulgaria interconnector, the success and 
possible expansion of the LNG terminal in Alexandroupoli, and 
the planned expansion of the Krk LNG import terminal in 
Croatia.
    There is a lot more to be done. Proposed gas 
interconnectors to join Macedonia with its neighbors, Bulgaria 
and Greece, have yet to come to fruition, and Kosovo's 
electricity generation distribution system remains shaky. 
Diversifying energy supplies away from Russia will help give 
the region more freedom from foreign influence. We need to also 
help address cybersecurity threats in the region. Albania 
suffered debilitating cyberattacks last fall from Iran for 
continuing to host Iranian dissidents.
    The U.S. provided significant support and I hope we learned 
useful lessons from the experience for our own cyber defenses. 
In Bosnia, there is still a lot of work to be done to improve 
political stability. Secessionist rhetoric and efforts to 
undermine government institutions send an alarming signal.
    The failure of the Bosnian federation to form a government 
without yet another intervention of the EU High Representative 
does not bode well. The Biden administration has taken some 
action by imposing sanctions on Bosnian politicians who 
propagate corruption and instability, and by sending regular 
high-level visitors to the region, but more needs to be done. 
We want to hear your plans to advance U.S. engagement, and what 
Congress can do to help support a more stable Bosnia and 
Herzegovina.
    Finally, I remain concerned about Russian and Chinese 
influence in this region. China is happy to provide money where 
many EU and U.S. investors balk, and Russia is happy to 
continue exploiting the many fissures in Balkan societies to 
manipulate public opinion for its own means. Where corruption 
exists, U.S. works to eliminate that corruption, whereas both 
Russia and China exploit corruption to spread their influence.
    The Biden administration should continue to support our 
partners in the Balkans in their ongoing efforts to tackle 
corruption, including through the use of targeted sanctions 
against the worst actors. The U.S. also needs a proactive and 
competitive approach to economic and political engagement in 
the Western Balkans.
    I hope our witnesses can discuss the steps that the U.S. is 
taking to help these nations increase their resilience, and to 
provide investment mechanisms like those in the DFC to push 
back against China's predatory practices. Thank you, Mr. 
Chairman.
    The Chairman. Thank you, Senator Risch. In the interest of 
time, I will just give some short bios for our esteemed 
witnesses. Derek Chollet is the Counsel of the U.S. Department 
of State, where he serves at the rank of Undersecretary, as a 
Senior Policy Adviser to the Secretary of State on a wide range 
of issues, and conducts special diplomatic assignments as 
directed by the Secretary.
    Mr. Chollet has previously held positions at the State 
Department, White House, Department of Defense. From 2012-2015, 
he was the U.S. Assistant Secretary of Defense for 
International Security Affairs, where he managed U.S. defense 
policy towards Europe, the Middle East, Africa, and the Western 
Hemisphere.
    Deputy Assistant Secretary Gabriel Escobar is the Deputy 
Assistant Secretary overseeing policy towards the countries of 
the Western Balkans in the Office of Press and Public 
Diplomacy. Previously, he served as the Deputy Chief of Mission 
at the U.S. Embassy Belgrade. He has also served at a 
department in Washington, at numerous posts across the world, 
including in the Western Balkans region, as political Unit 
Chief in Belgrade, shortly after the U.S. Embassy reopened in 
2001. Thank you both for appearing today.
    Your full statements will be included in the record. I 
would ask you that you summarize your statements to about 5 
minutes or so. As you can see, there is a lot of interest here 
by members so we can engage in a conversation with you. 
Counselor, we will start off with you.

   STATEMENT OF HON. DEREK CHOLLET, COUNSELOR, UNITED STATES 
              DEPARTMENT OF STATE, WASHINGTON, DC

    Mr. Chollet. Great. Thank you, Mr. Chairman, Ranking Member 
Risch, distinguished members of the committee. Thanks for 
inviting us here to talk about the Biden administration's 
Western Balkans policy. I also want to thank the committee for 
its strong bipartisan support and engagement in this region.
    The future of the Western Balkans is a priority for the 
Biden administration. For many of us, this is personal. 
President Biden has been deeply involved in these issues since 
he sat on this committee. Secretary Blinken, USAID 
Administrator Power, who was just in Kosovo and Serbia last 
week, and many of us have engaged on these issues since the 
violent breakup of Yugoslavia in the early 1990s.
    Our policy is grounded on a simple principle, a Europe 
whole, free, prosperous, and at peace is in our national 
security interests. Unfortunately, the Western Balkans remains 
a missing piece of the puzzle. European integration has not 
been easy.
    The obstacles, Mr. Chairman, as you have noted, have been 
formidable, from anti-democratic leaders, to corruption, weak 
rule of law, cyberattacks, underdeveloped infrastructure, 
economic barriers, dependence on Russian energy, ethnic and 
religious strife. The list goes on and on.
    Nevertheless, it is important for us to remember how much 
potential there is in the Western Balkans. The countries of the 
Western Balkans have come a long way since the wars of a 
quarter century ago, and they have tremendous potential for 
greater prosperity, but they need our help to overcome their 
challenges and bridge their lingering divides.
    Let us start with one of the most significant challenges we 
face, and that is the relationship between Kosovo and Serbia. 
Kosovo is a sovereign, independent, democratic country. It is 
one of our closest friends and partners. It often punches above 
its weight.
    The United States supports Kosovo's full recognition, and 
we support its integration into international institutions, 
including the United Nations, and we look forward to Kosovo 
getting closer to NATO and the European Union and eventually 
joining those institutions. Yet the European aspirations of 
both Kosovo and Serbia will not happen until they resolve their 
differences.
    That is why we have strongly supported the EU facilitated 
dialog. Now, following months of intensive diplomacy led by the 
EU, there is a path to normalizations in which both countries 
fulfill their independent obligations. My colleague, Special 
Representative Escobar, has been an active participant in these 
talks and can speak to them in greater detail. This agreement 
can bring real benefits to Kosovo and Serbia.
    It represents a significant breakthrough in overcoming the 
cycle of crises that has characterized the relationship between 
these two countries for far too long, but this is very fragile. 
Hard work remains, political courage is required, and we will 
continue to engage both parties so that they fulfill their 
mutual commitments.
    As we continue to support Kosovo, we are also committed to 
deepening our partnership with Serbia and developing closer 
ties to the Serbian people. I want to stress we do so with our 
eyes wide open. Serbia has significant challenges from 
corruption to Russian-fueled disinformation.
    Our history together has been very difficult, and the 
relationship has not been easy. Yet it is in our interest to 
help Serbia realize its full potential and come closer to the 
Euro-Atlantic community and closer to the United States.
    Second, we are also focused on the serious challenges in 
Bosnia Herzegovina. 28 years after Dayton, there is still peace 
in Bosnia Herzegovina, but, Mr. Chairman, as you noted, it is a 
very uneasy peace. Pervasive corruption, democratic 
backsliding, increasingly inflammatory rhetoric by ethno-
nationalist leaders, this is deeply troubling, and it attacks 
the very foundations of the Dayton Agreement.
    We have made clear that we oppose such actions, and we will 
impose consequences. We remain deeply committed to Bosnia 
Herzegovina's territorial integrity and sovereignty, its Euro-
Atlantic integration, and the full implementation of Dayton.
    Third, Montenegro. It is a valued NATO ally, and we are 
optimistic that the recent presidential election there is a 
signal that Montenegrins are ready to overcome their 
differences, advance their EU membership prospects, and secure 
a better future. We urge the new leadership in Montenegro to 
focus on reforms, particularly to strengthen the rule of law 
and combat the influence of corruption and organized crime.
    Finally, we strongly support the further European 
integration of North Macedonia and Albania. Again, they are 
terrific NATO allies and last July they opened their own EU 
accession negotiations, which we strongly support. Mr. 
Chairman, the Western Balkans is Europe's inner courtyard. 
Completing its transatlantic integration contributes to a 
stronger Europe and a stronger transatlantic family.
    It is also essential, as you noted, in the geostrategic 
context, to reduce the influence of malign actors like Russia 
and the PRC that seek to destabilize the region and undermine 
our alliance.
    Our work in the Western Balkans drives toward a fundamental 
goal, to help develop democracies that are stronger, more 
transparent, and less corrupt, where engaged citizens hold 
their governments accountable, and where everyone can benefit 
from the opportunities that come from greater regional 
integration and economic prosperity.
    That is what we are seeking to do, and we are grateful for 
your support and help. I look forward to your questions.
    [The prepared statement of Mr. Chollet follows:]

                Prepared Statement of Mr. Derek Chollet

    Chairman Menendez, Ranking Member Risch, distinguished Members of 
the Committee, thank you for inviting me to discuss the Biden 
administration's Western Balkans policy. I also thank the Committee for 
the strong, bipartisan Congressional engagement and support for the 
region.
    The future of the Western Balkans is a priority for the Biden 
administration. The President has been a leader on these issues since 
his time on this Committee, and Secretary Blinken, USAID Administrator 
Power who was in Kosovo and Serbia last week, and many of us have been 
engaged on these issues since Yugoslavia's violent dissolution.
    Our policy is grounded on a simple principle: a Europe whole, free, 
prosperous, and at peace is in our national security interest and the 
Western Balkans region remains a missing piece of the puzzle.
    European integration has not been easy. The obstacles are 
formidable: anti-democratic leaders, corruption, weak rule of law, lack 
of independent institutions, cyberattacks, under-developed 
infrastructure, economic barriers, willful dependence on Russian 
energy, ethnonationalist politics, emigration, harmful foreign 
influence, and disinformation.
    Nevertheless, the countries of the Western Balkans have come a long 
way since the wars a quarter of a century ago--and they have tremendous 
potential for greater prosperity. But they need our help to overcome 
still considerable obstacles. The most pressing are the unresolved 
issues between Serbia and Kosovo.
    Kosovo is a sovereign, independent, democratic country. It is one 
of our closest friends and partners. The United States supports 
Kosovo's full integration into international structures, including the 
United Nations, and we look forward to seeing it join NATO and the 
European Union.
    The immediate reality is that the European aspirations of both 
Kosovo and Serbia will not happen until they resolve their differences. 
We strongly support the EU-facilitated Dialogue--which remains their 
best path to that Euro-Atlantic future and durable peace and prosperity 
in the Western Balkans.
    The recent agreement lays out a path to normalization in which both 
countries fulfill their independent obligations. My colleague, Special 
Representative Escobar, has been an active participant in these talks 
and can speak to them in greater detail.
    Kosovo reaffirmed its commitment to establish an Association of 
Serb-majority Municipalities, an action we have urged them to take 
expeditiously, formalize the Serbian Orthodox Church's status, and 
provide strong protections for Serbian religious and cultural heritage 
sites.
    Kosovo and Serbia will also recognize each other's documents and 
national symbols. And Serbia will no longer lobby against Kosovo's 
membership in international organizations.
    This agreement represents a significant breakthrough in overcoming 
the cycle of crises that has characterized the relationship between 
these two countries for far too long. But a lot of hard work remains. 
These decisions are not easy. We will continue to work with both 
parties so that they fulfil their mutual commitments.
    At the same time, we are committed to deepening our partnership 
with Serbia and developing closer ties to the Serbian people. We do so 
with our eyes open--Serbia has significant challenges from corruption 
to harmful Russian influence, including disinformation. Our history has 
been difficult, and our relationship has not always been easy. Yet it 
is in our interest to help Serbia realize its full potential and come 
closer to the Euro-Atlantic community.
    To be clear, progress must be earned. Serbia must deliver on 
commitments to build constructive relations with all its neighbors, and 
strong, sustainable democracy at home to achieve this vision.
    We also are focused on the challenges in Bosnia and Herzegovina. 
Its pervasive corruption, democratic backsliding, and increasingly 
inflammatory rhetoric by ethno-nationalist leaders are deeply 
troubling. Threats of Republika Srpska entity secession, attempts to 
limit civil society and media freedoms, and efforts to undermine state 
institutions are destabilizing and attack the foundations of the Dayton 
Peace Agreement. We have made clear that we oppose such actions and 
will impose consequences. We remain unequivocally committed to Bosnia 
and Herzegovina's territorial integrity and sovereignty, its Euro-
Atlantic integration, and the full implementation of the Dayton Peace 
Agreement. We continue to support the Office of the High Representative 
and the use of Bonn Powers when necessary.
    And in Montenegro, we are optimistic that this NATO Ally's recent 
presidential election is a signal that Montenegrins are ready to 
overcome their differences, advance their EU membership prospects, and 
secure a better future. We urge the new leadership to focus on reforms, 
particularly to strengthen rule of law and combat corruption and 
organized crime.
    Finally, we strongly support the further European integration of 
North Macedonia and Albania. They are terrific NATO Allies. Last July, 
North Macedonia and Albania opened their own EU accession negotiations.
    North Macedonia ably hosted the Kosovo-Serbia Dialogue in March, 
contributing greatly to its success, and it has adroitly chaired the 
OSCE even as Russia has repeatedly sought to block its work.
    Albania is a strong partner on the UN Security Council and is 
honoring its tradition of hospitality by helping resettle Afghans at 
risk.
    The Western Balkans is Europe's inner courtyard; completing its 
transatlantic integration contributes to a stronger Europe--and a 
stronger Transatlantic family. It is also essential to reducing the 
harmful influence from actors such as Russia and the PRC that seek to 
destabilize the region and our Alliance. Among our goals for Western 
Balkan countries is helping them to develop stronger, more transparent 
democracies where engaged citizens hold their governments accountable, 
there is strong support for shared values, and where everyone can 
benefit from the growth and opportunity that comes with greater 
economic prosperity.
    Progress on all these issues, and the success of our work to 
strengthen U.S. national security, depends on continued bipartisan 
close coordination with Congress. I look forward to your questions.

    The Chairman. Thank you. Secretary Escobar.

   STATEMENT OF GABRIEL ESCOBAR, DEPUTY ASSISTANT SECRETARY, 
   WESTERN BALKANS, BUREAU OF EUROPEAN AND EURASIAN AFFAIRS, 
       UNITED STATES DEPARTMENT OF STATE, WASHINGTON, DC

    Mr. Escobar. Thank you, Chairman Menendez, Ranking Member 
Risch, distinguished members of the committee. I appreciate the 
invitation to come here and discuss the Biden administration's 
Western Balkans policy.
    The United States is working closely with European partners 
and allies to ensure that the door to transatlantic 
institutions remains open, and the path to membership in the 
European Union remains credible and concrete.
    At the same time, the countries of the Western Balkans must 
implement reforms necessary to qualify for that membership. We 
are helping them build capacity to fight the pervasive 
corruption and the disinformation that make the region more 
susceptible to malign influence, and to resolve the lingering 
tensions that continue to threaten regional stability and 
integration. Our work in the Western Balkans also strengthens 
Europe as a geostrategic global partner.
    As the Counselor noted, a major obstacle to enduring peace 
and prosperity in the Western Balkans is the fraught 
relationship between Serbia and Kosovo. The EU facilitated 
agreement on the path to normalization of relations, and its 
implementation annex agreed to in February and March, were 
major steps toward bringing peace and predictability to the 
relationship. Implementation is underway.
    On May 2, the Serbian President and the Kosovo Prime 
Minister began discussions on the Association of Serb Majority 
Municipalities and reaffirmed their commitment to resolve the 
fate of missing persons to foster reconciliation and peace. I 
have repeatedly traveled to Brussels and across the region to 
support this process.
    The United States will remain engaged with Kosovo, Serbia, 
and our European partners to urge fulfillment of all 
obligations under the dialogue agreement. For too long, failure 
to make progress has allowed Russia to play a spoiler role 
against Serbia's strategic goal of European integration, which 
the Serbian people strongly desire, and we strongly support.
    Both Serbia and Kosovo must normalize relations to unleash 
their full potential and progress on their respective EU paths. 
In Bosnia Herzegovina, years of dysfunction and division have 
plagued state- and entity-level governments, undermining the 
country, its Euro-Atlantic aspirations, and the future of its 
citizens.
    Ethno-nationalist political leaders from all constituent 
peoples, Serbs, Croats, and Bosniaks, often pursue narrow, 
personal, and political gain rather than public good. The 
United States is now engaged in an intensive effort to 
strengthen the international community's work to uphold the 
Dayton peace agreement.
    The High Representative used his bond powers to ensure that 
elections were held last October and to break a 4-year deadlock 
on Federation Government formation. The United States strongly 
supported these difficult, but necessary decisions.
    With a new state and entity level governments in place, we 
can now help Bosnia and Herzegovina's leaders to implement long 
overdue reforms and advance their citizens' Euro-Atlantic 
aspirations.
    We are deeply alarmed by Republika Srpska President Milorad 
Dodik's persistent secessionist and anti-democratic actions. In 
cooperation with European partners, we will work to deter Dodik 
from pursuing de facto separation and limit resources to fund 
his divisive practices.
    We continue to support a robust EU force operation--
Operation ALTHEA mission to preserve Bosnia Herzegovina's 
sovereignty, territorial integrity, and multiethnic character. 
The United States will continue to deploy sanctions against 
those throughout the region who threaten or undermine Bosnia-
Herzegovina's institutions or the Dayton peace agreement, but 
there are also bright spots in the region, and not 
coincidentally, there are NATO members.
    In Montenegro, we are seeing renewed momentum to realize 
its European future. Recent presidential elections were smooth. 
Montenegro reestablished a quorum and its constitutional court. 
Its leaders must now fill the remaining court vacancy and other 
critical judicial appointments.
    We hope to see free and fair parliamentary elections on 
June 11, and that the newly elected leaders will heed the call 
of the people and move quickly on needed reforms to advance 
Montenegro's EU integration. Both Albania and North Macedonia 
have opened EU accession negotiations.
    Both are helpful partners in supporting normalization 
between Serbia and Kosovo, and like Croatia and Montenegro, 
both are stalwart NATO allies. To further its EU aspirations, 
North Macedonia is committed to enacting a constitutional 
change to recognize its Bulgarian minority.
    We strongly support this difficult, but necessary step. 
Iran's devastating cyberattacks on Albania last year underscore 
that we must continue to assist allies and partners in the 
region to strengthen their security. The United States has 
committed approximately 50 million in cybersecurity assistance 
to Albania for its civilian and military sectors. It is one of 
our largest cyber support contributions to any individual 
country to date.
    To close, as we work to help create a stronger Western 
Balkans within a stronger Europe, continued Congressional 
interest and engagement on the Western Balkans is invaluable. 
Like Counselor Chollet, I welcome your questions. Thank you.
    [The prepared statement of Mr. Escobar follows:]

               Prepared Statement of Mr. Gabriel Escobar

    Chairman Menendez, Ranking Member Risch, distinguished Members of 
the Committee, I appreciate your invitation to discuss the Biden 
administration's Western Balkans policy.
    The United States is working closely with European partners and 
Allies to ensure that the door to transatlantic institutions remains 
open, and the path to membership in the European Union remains credible 
and concrete. At the same time, the countries of the Western Balkans 
must implement the reforms necessary to qualify for membership. We are 
helping them build capacity to fight the pervasive corruption and 
disinformation that make the region more susceptible to malign 
influence, and to resolve lingering tensions that continue to threaten 
regional stability and integration. And our work in the Western Balkans 
also strengthens Europe as a geostrategic, global partner.
    As the Counselor noted, a major obstacle to enduring peace and 
prosperity in the Western Balkans is the fraught relationship between 
Kosovo and Serbia. The EU-facilitated Agreement on the Path to 
Normalization of Relations and its implementation annex, agreed to in 
February and March, were major steps toward bringing peace and 
predictability to the relationship. Implementation is underway. On May 
2, the Serbian President and Kosovan Prime Minister began discussions 
on the Association/Community of Serb-majority Municipalities and 
reaffirmed their commitment to resolve the fate of Missing Persons to 
foster reconciliation and peace. I have repeatedly traveled to Brussels 
and across the region to support this process. The United States will 
remain engaged with Kosovo, Serbia and our European partners to urge 
fulfillment of all obligations under Dialogue agreements. For too long, 
failure to make progress has allowed Russia to play a spoiler role 
against Serbia's strategic goal of European integration--which the 
Serbian people strongly desire, and we strongly support. Both Serbia 
and Kosovo must normalize relations to unleash their full potential and 
progress on their respective EU paths.
    In Bosnia and Herzegovina, years of dysfunction and division have 
plagued state and entity-level governments, undermining the country, 
its Euro-Atlantic aspirations, and the future of its citizens. 
Ethnonationalist political leaders from all constituent peoples--Serbs, 
Croats, and Bosniaks-- often pursue narrow personal and political gain 
rather than the public good. The United States is now engaged in an 
intensive effort to strengthen the international community's work to 
uphold the Dayton Peace Agreement.
    The High Representative used his Bonn Powers to ensure that 
elections were held last October and to break a 4-year deadlock on 
Federation government formation. The United States strongly supported 
these difficult but necessary decisions. With new state and entity-
level governments in place, we can now help Bosnia and Herzegovina's 
leaders to implement long-overdue reforms and advance their citizens' 
Euro-Atlantic aspirations.
    We are deeply alarmed by Republika Srpska President Milorad Dodik's 
persistent secessionist and anti-democratic actions. In cooperation 
with European partners, we will work to deter Dodik from pursuing de 
facto separation and limit resources to fund his divisive practices. We 
continue to support a robust EU Force Operation Althea mission to 
preserve Bosnia and Herzegovina's sovereignty, territorial integrity, 
and multiethnic character. And the United States will continue to 
deploy sanctions against those throughout the region who threaten or 
undermine Bosnia and Herzegovina's institutions, or the Dayton Peace 
Agreement.
    There are also bright spots in the region: In Montenegro, we are 
seeing renewed momentum to realize its European future. Recent 
presidential elections were smooth. Montenegro re-established a quorum 
on its Constitutional Court. Its leaders must now work to fill the 
remaining court vacancy and other critical judicial appointments. We 
hope to see free and fair parliamentary elections on June 11, and that 
newly elected leaders will heed the call of the people and move quickly 
on needed reforms to advance Montenegro's EU integration.
    Both Albania and North Macedonia have opened EU accession 
negotiations; both are helpful partners in supporting normalization 
between Serbia and Kosovo; and, like Croatia and Montenegro, both are 
stalwart NATO Allies.
    To further its EU aspirations, North Macedonia has committed to 
enacting a constitutional change to recognize its Bulgarian minority. 
We strongly support this difficult but necessary step.
    Iran's devastating cyberattacks on Albania last year underscored 
that we must continue to assist Allies and partners in the region to 
strengthen their security. The United States has committed 
approximately $50 million in cybersecurity assistance to Albania's 
civilian and military sectors--one of our largest cyber support 
contributions to any individual country to date.
    To close, as we work to help create a stronger Western Balkans 
within a stronger Europe, continued Congressional interest in, and 
engagement on the Western Balkans is invaluable. Like Counselor 
Chollet, I welcome your questions today.

    The Chairman. Thank you. We will start a round of 5-minute 
questions. Detailed reporting from The New York Times magazine 
a few weeks ago asserted that connections between the Serbian 
Government and gang violence in both Serbia and North Kosovo, 
carrying out murders and intimidating political rivals in the 
media. Is this reporting credible, Counselor?
    Mr. Chollet. We believe it is. I mean, I cannot speak to 
the specifics of the article, but there is absolutely a lot of 
corruption involved----
    The Chairman. What are the real prospects for a reliable 
partner in Serbia with that background?
    Mr. Chollet. Well, something--Mr. Chairman, we have to 
test. Again, we are doing this with eyes open, but we are 
holding Vucic to account and his colleagues to account for 
their corruption, for their behavior and activity.
    We have issued sanctions against many folks throughout the 
region. We have made very clear that corruption--and by the 
way, it is not just in one particular part of the region, it is 
a scourge throughout the region.
    In my view at least, corruption is the thing, the single 
most important thing holding up the integration of the region 
into Europe. This is a high priority for us. It is something 
that our embassies work very, very hard on and we pay very 
close attention to in Washington.
    The Chairman. Well, since Serbia and Kosovo agreed to the 
EU proposal agreement on the path to normalization between 
themselves, we have had mixed results, starting with President 
Vucic's refusal to sign the agreement.
    We have seen Serbia violate the agreement by opposing 
Kosovo's membership in the Council of Europe, and through 
encouraging a boycott of elections in North Kosovo by ethnic 
Serbs. Now I want to see Kosovo and Serbia move forward on 
normalization.
    How can we expect countries to implement an agreement in 
good faith, if Vucic refuses to put his name on it?
    Mr. Chollet. We consider that agreement to be legally 
binding. We have told President Vucic that, and he has never 
denied that. The EU has also said that the agreement is legally 
binding and----
    The Chairman. Well, he may not deny it, but it does not do 
the things necessary to implement it. That is the equivalent.
    Mr. Chollet. Well, unfortunately, if I may, Mr. Chairman, 
we are not seeing much implementation on either side of that 
agreement. It is something that my colleague, Mr. Escobar, has 
been very focused on.
    I had a chance to talk to the EU foreign policy chief 
Borrell over the weekend about this. The EU is very focused on 
this, which is why we have been engaged in such intense 
diplomacy to get both sides to live up to their end of the 
agreement.
    The Chairman. Let me ask you this, that despite concerns 
over whether the Association of Serb Municipalities, despite 
concerns over whether such an organized association would 
violate Kosovo's constitution, the U.S. and the EU continue to 
press the creation of the Association of Serb Municipalities.
    Now, I asked you last year, Mr. Secretary, have you--about 
this, but I personally have not seen a satisfactory answer. Can 
you tell us what would guarantee that such an association would 
not become an obstructionist entity like the RS in Bosnia?
    Have you explored with both the viability of creating an 
association model compatible with Kosovo's constitution?
    Mr. Escobar. Absolutely. In fact, that is our goal. Our 
position is that the association is an existing legal 
obligation under the Brussels agreement, but we have repeatedly 
told Kosovo that we would help them shape it into something 
that is a European model that does not violate its sovereignty, 
or its constitutional structure, or its functionality.
    The way we see it, the association is a way for the four 
municipalities or any other municipality that would like to 
join to be able to provide municipal services for a sizable 
minority in Serbian language.
    In other words, what we would like to see is we would like 
to use the association to unwind what Serbia is doing in 
Northern Kosovo and put it under a Kosovan structure that they 
control and that it is under Kosovan law.
    In other words, I do not see this as a concession to 
Serbia. I see it as a way for Kosovo to accommodate those 
citizens that live within Kosovo, who are Kosovan citizens, to 
be able to access government services----
    The Chairman. Only if they can fall within a Kosovo 
constitutional order, does it not become an obstructionist 
entity like RS in Bosnia.
    Mr. Escobar. It is our goal that it will not. That in fact 
the European Union has provided them models, European models, 
where countries can provide services in another language for 
their own citizens.
    In none of those models can a neighboring country reach 
into the territory of another neighbor to hobble its 
constitutionality or its legal structure. That is our goal, 
because as they normalize relations between each other, they 
are also harmonizing with the European Union in their path to 
integration.
    The Chairman. Well, let us talk about the European Union. 
We know that Greece, Cyprus, Spain, Slovakia, and Romania's 
non-recognition of Kosovo will continue to present a barrier to 
entry for Kosovo in the EU. It gives Serbia, to be frank, a 
convenient excuse. What is the latest with our engagement with 
these countries on recognizing Kosovo?
    Mr. Chollet. We have been intensively engaged with them and 
we have made clear to our Kosovan friends that we are going to 
continue to be intensively engaged in it, particularly if we 
can get this normalization agreement agreed to and implemented.
    The Chairman. Well, I think we need a robust engagement. 
Finally, I have personally heard from Albanian leaders that 
ethnic Albanians in the Presheva Valley undergo systematic 
discrimination. They report having their identities wiped from 
Serbian Government databases, making them essentially 
stateless. While Serbia attempts to politicize minority rights 
in Kosovo, what are we doing to address the situation for 
ethnic Albanians in Serbia?
    Mr. Escobar. Our embassy in Belgrade is actively engaged 
with this. We are using USAID money to help create some 
opportunities to enact critical protections for the Albanian, 
and not just Albanian, but Bosniak, and other communities 
inside of Serbia.
    Unlike Kosovo, however, because Serbia is recognized by all 
five countries of the European Union, they are further along in 
their integration path, but at the same time they have greater 
obligations under those structures to protect minority rights.
    We want to use all of those levers to make sure that the 
rights of all citizens in Serbia are protected.
    The Chairman. Senator Risch.
    Senator Risch. Thank you, Mr. Chairman. We had a discussion 
here. I think both the Chairman and I raised the question of 
energy in the region and how important that is to get all of 
them as much as possible disconnected from Russia as the rest 
of Europe is struggling to do and making great efforts and very 
significant progress in that regard.
    Obviously, because of the financial issues involved, it 
becomes difficult. Are you using the leverage of the DFC to do 
this, and if so, how? Give us an update on that, if you could, 
please.
    Mr. Escobar. Well, we agree that energy diversification and 
also transformation from fossil fuels to renewables is a key 
priority for this Administration. We have seen a lot of 
investment in the energy, especially in Albania, and in other 
parts.
    We believe that the countries are entering into agreements 
that are going to help diversify their energy sources away from 
Russia, and we support it. We would welcome additional U.S. 
Government support for all of those efforts, including DFC.
    Senator Risch. I appreciate that. DFC was put together by 
us, I think for the exact--I mean, this is a poster child for 
what we want to use the DFC for. I am a little disappointed in 
that answer, that it is not more aggressive and more 
recognizing of how important the DFC can be in what you are 
trying to do here. The chairman recited a list of countries 
that do not recognize Kosovo.
    What do they say when you talk to them? What is the reason 
that they give for this? I mean, it seems to me, being an 
outsider, sitting here, it just does not seem logical. Both of 
you, I would like to hear from.
    Mr. Chollet. Yes. I am happy to start, Senator Risch. Part 
of it is their own politics and situations going on inside 
their own countries. It is not about Kosovo or Serbia per se. 
It is about the precedent that they feel--they have got their 
own separatist groups, perhaps in their country, and they are 
worried that this might blow back on them in some way.
    I mean, quite frankly, that is what it is about, but I can 
tell you that we have had, in this intensive engagement, we 
have been having with these countries as we approached the 
implementation of the normalization deal or the possibility of 
this implementation, we have had signals that there are some 
who recognize that this is something that they should do 
quickly in terms of recognition of Kosovo.
    There are others that, quite frankly, it is going to be 
really tough, but what we tell our friends in Kosovo is that we 
will work very hard on this effort. We are working hard. We 
will continue to work hard, but we need to see this agreement 
start to be implemented. It will make our case a lot stronger 
if we are seeing the agreement actually moving forward.
    Senator Risch. Mr. Escobar.
    Mr. Escobar. That is absolutely right. One of the things 
that the five non-recognizers have asked for is they have asked 
for full implementation of the agreement. For some, a bilateral 
agreement between the two countries is absolutely crucial for 
their policy goals.
    This represents the best opportunity to move on new 
recognitions.
    However, to give credence to that pressure, we would have 
to have some implementation. Quite frankly, from the Kosovo 
side, people are expecting to see the implementation of the 
Association of Serb Municipalities.
    It is an existing legal obligation. It is in the European 
Council conclusions. There is no getting around the ASM for 
Kosovo to move closer to the European Union.
    Senator Risch. Okay. Thank you. My time is about up, Mr. 
Chair. Thank you.
    Senator Cardin [presiding]. I want to turn to Bosnia-
Herzegovina. It has been 28 years since the Dayton Accords, and 
the structure there was to end the conflict, but certainly not 
to establish an effective governing structure for the future of 
the country.
    That was 28 years ago. My question really deals with how we 
are moving forward. In the 2022 elections, changes were made by 
the High Representative in an effort to deal with the 
representation of the Croats.
    The Bosniaks were upset with that change. Tell me the 
current status of the cooperation you are receiving from the 
different ethnic communities within Bosnia to get the necessary 
constitutional changes for the future of the stability of that 
republic.
    Mr. Chollet. Senator Cardin, I can start. I think it is 
important to just step back and note, Bosnia is still at peace. 
That was the fundamental goal of Dayton, which was to ensure 
that the Bosnian war end----
    Senator Cardin. We have applaud that. They certainly do not 
have a type of governance that----
    Mr. Chollet. No question. I think I had a long association 
with the late Ambassador Holbrooke, and I know that he believed 
up until the time he passed that Bosnia was nowhere close to 
where its Dayton framers wanted it to be.
    That said, I mean, our policy is strongly in support of 
Bosnia sovereignty, its territorial integrity, its multi-ethnic 
character, and its EU future. It is important now that it 
actually has an EU future. It has got an accession process that 
is underway. It seems very distant, but there was just a senior 
EU envoy in Sarajevo yesterday to talk about moving this 
process forward.
    As we both noted, the secessionist and nationalist rhetoric 
is deeply, deeply concerning. It is very dangerous because it 
is throwing matches on kindling throughout the region. We have 
been very focused in particularly on corruption, because coming 
back to this question that plagues Serbia, plagues so many 
parts of the region, corruption is what is, I think, fueling 
most of Bosnia's dysfunctionality.
    It is cronyism and state capture that we are worried about. 
The one piece of good news is that there is a federation 
government for some time in a few years, a state level 
government, that, yes, the HR, the Office of the High Rep had 
to use special powers to get formed. That is a positive thing, 
and frankly, I think it is a strike against ethno-nationalism, 
but now we need that government to work and to function and to 
deliver for its people.
    The last thing I will note is that we have said and have 
shown that we are going to impose consequences on those who are 
fueling corruption and seeking to undermine Dayton. We have 
done that through a new executive order that President Biden 
put into place several years ago.
    We have gone directly after Mr. Dodik, who is the leader of 
the RS, the Bosnian Serb entity and those who support him. We 
are not going to let them blow up Bosnia.
    Senator Cardin. I applaud your efforts on behalf of anti-
corruption. I think that is critically important. The steps 
taken in the 2022 elections tell me the current status in the--
among the Bosniaks and the Croats as to how that has now been 
received.
    Mr. Chollet. How has the use of the bond powers been 
received?
    Senator Cardin. Yes. I know that the Bosniaks thought that 
it was unfair using the census data that was reflective of 
atrocities against the ethnic Bosnians. I also understand that 
they felt there was a change of the rules, if the election 
itself took place.
    In regards to the Republika Srpska, that is a separate 
issue with President Dodik, and we recognize that is a 
challenge to the sovereignty of the country. Were the changes 
made for the 2022 elections now being received positively by 
the ethnic communities in both Bosnia, Bosnia and Croats?
    Mr. Escobar. Well, if I can say one thing. Not all Bosnians 
were unhappy with it. One particular ethno-nationalist party 
was very much against it, but it did open the door to new faces 
in the federation government. It also addressed some of the 
imbalance in the representation in certain structures within 
Bosnia-Herzegovina.
    We welcomed those because it opened the door to a more 
functional federation, which is absolutely needed as a 
counterweight to Republika Srpska, which for a long time 
dominated the country because there was no federation 
government to push back.
    To answer your question on what needs to be done, we need 
to push Bosnia-Herzegovina faster into European integration, 
and we need to empower the next generation of leaders who are 
not ethno-nationalists. You see some of those emerging leaders 
behind me today.
    Senator Cardin. I will just make a final comment. Twenty-
eight years is a long time to be living under a bridge type of 
arrangement for governance. I acknowledge it was to end the 
conflict or the open war, and that was good, but it was--we are 
long past the time where we thought a constitutional change 
would be an act of consideration. From your conversations, it 
looks like we do not have a path forward yet on the 
constitutional changes that are going to be necessary.
    We have not even talked about the Republika Srpska and its 
desire for independence, which is also undermining the future 
of governance in that region. Senator Romney. Oh, Senator 
Romney left. Senator Ricketts.
    Senator Ricketts. Thank you very much. One of the things 
that we know that the CCP is trying to do is replace the United 
States and our system around the world. They have been trying 
to extend their influence. Serbia is--and the Balkans are no 
different with regard to growing their influence there.
    Billions of dollars of Chinese investment have been flooded 
into Serbia in recent years in funding mines and factories 
across the country, infrastructure, roads, bridges, new 
facilities. The Serbian Government has also purchased drones 
and missile defense system from China and brought thousands of 
Huawei surveillance systems with facial recognition 
capabilities. It is also growing in other ways. Serbian 
universities have in cooperation agreements with their Chinese 
counterparts to create two state-run Confucius institutes.
    University of Nebraska, a couple of years ago, shut down 
our Confucius institute, and we have seen those being used for 
spying operations here in our country. The Serbian Government 
also reached an agreement for direct flights to China.
    China is opening a Chinese cultural center in Belgrade at 
the site of the former embassy that was actually bombed by NATO 
in the air campaign in 1989. We can see just a growing list of 
places where the CCP is trying to extend its influence in 
Serbia. Secretary Escobar, how does the CCP's increasing 
influence with Serbia and the Balkans hurt U.S. efforts for 
Serbia to pivot toward the West?
    Mr. Escobar. Thank you very much for that question. I would 
say that the threat of malign Chinese influence exists 
throughout the region, not just in Serbia, but within Serbia, 
it is very concerning.
    We have cautioned Serbia about additional weapons purchases 
from China. We have made it very clear that we believe that a 
lot of the investments that have been made by China in Serbia 
have been less than successful, and not just in Serbia, but 
around the region.
    We have encouraged them to look at alternatives, and many 
of those alternatives are American and they are really good 
alternatives. We are starting to see a greater penetration of 
American companies in Serbia to displace that. Again, one of 
the challenges is that China offers easy, available financing 
for a lot of these projects.
    Some of these projects are a big bite for small countries. 
That seemingly attractive package is the toehold that gets 
Chinese companies in there. Along with the companies comes 
political influence.
    We need to be more aggressive in promoting American 
business throughout the region, particularly in energy and 
infrastructure. We will continue to press all of the countries 
of the region to align closer with European requirements, with 
investment screening mechanisms, and to enter into any 
agreements with China with their eyes wide open, because it has 
not been a successful process in the Balkans.
    Senator Ricketts. Is there anything this committee can be 
doing, or the Senate could be doing to help facilitate that, or 
there are other steps that we ought to be taking to combat the 
CCP's influence in Serbia?
    Mr. Escobar. Well, I think partially the support for DFC, 
the support for additional private sector engagement, and just 
direct engagement by this committee and by others in the Senate 
with the leaders of these countries would be very helpful.
    Senator Ricketts. Okay. Let us switch real quickly. I have 
only got about a minute and a half here. Let us switch back 
to--or switch over to Montenegro. Obviously, Vladimir Putin has 
been working to extend Russian influence there.
    Maybe you could just talk a little about what is your 
initial take on President Milatovic--did I get that probably?
    Mr. Chollet. Milatovic.
    Senator Ricketts. Thank you very much. Just kind of, what 
do you believe we need to do to push Montenegro more toward the 
EU and away from Russia?
    Mr. Chollet. Well, I think, again, Montenegro is a great 
ally of NATO or an EU aspirant. Milatovic won a decisive 
victory. His new party or new movement, ``Europe Now!,'' is 
very vibrant.
    They have parliamentary elections coming up in June that 
will select a new government. They have maintained sanctions on 
Russia since 2014, since Russia's initial invasion in Ukraine. 
Milatovic, the new President has committed to continue to do 
that and to keep pace with other EU sanctions.
    They are actually hosting a NATO exercise as we speak. They 
are a good partner. We see this new President and the new 
movement that he is leading, it is representing generational 
change in Montenegro.
    We think it is very positive. It is important for us to 
stay engaged and show up, and that is why Mr. Escobar is going 
to be on an airplane tomorrow to fly out----
    Mr. Escobar. Today.
    Mr. Chollet. Sorry, tonight to fly out to the inauguration 
of the new president.
    Senator Ricketts. Great. Thanks very much.
    Senator Cardin. Senator Shaheen.
    Senator Shaheen. Well, thank you both for being here and 
for all your efforts in the Western Balkans. I want to, DAS 
Escobar, you pointed out that we have a number of young leaders 
from Bosnia-Herzegovina here, and I just want to recognize the 
Bosnian youth caucus who are here.
    We are delighted to have you visiting with us and 
appreciate your commitment to your country. When I was in 
Bosnia-Herzegovina last year, one of the concerns that I heard 
was about the reauthorization of the EUFOR-Althea Mandate, 
which happened without incident at the UN, but I wanted to get 
your assessment of whether we think that is going to get 
renewed again this year.
    Also, there was concern about the force level of troops who 
were there as part of that EUFOR Mandate. I know they have 
increased the numbers from 600 to 1,100, but is our assessment 
that that--given the inflammatory rhetoric and what is 
happening in the Republic of Srpska, is it our assessment that 
that number is adequate, or do we need to encourage additional 
troops?
    Mr. Chollet. Thank you for the question, Senator Shaheen. 
Thank you for your engagement on these issues. You are right, 
we were able to get the EUFOR mandate renewed last year.
    We believe that we are going to be able to do that again 
with relative ease. We still have a few months to go, so I do 
not want to get too ahead of things, but we will work hard on 
that.
    We do believe they have sufficient force now, but it is 
something that we pay very, very close attention to, to fulfill 
their mission, to maintain a safe and secure environment in 
Bosnia. This is something we are in constant conversation with 
our EU colleagues, as well as our military colleagues about the 
composition and the force structure of EUFOR.
    Senator Shaheen. DAS Escobar, you mentioned just now that 
one of the answers is to encourage BIH into faster integration 
with the rest of Europe.
    How do we do that? Because that obviously requires reforms 
in the country. It requires the people of the country to 
embrace that. I know they want to do that, but their leaders so 
far have not been willing to support those kinds of reforms.
    Mr. Escobar. Well, I would say that the leaders who do not 
support are doing it for their own narrow, corrupt interests.
    Senator Shaheen. I do not disagree with that, but how do 
we--how do we move the needle there?
    Mr. Escobar. The first part is we have been very robust in 
the use of sanctions against people who are blocking the 
European path, but at the same time, we need to empower those 
leaders who want to move the country forward in its Euro-
Atlantic path.
    We can do that with our assistance programs, with our 
capacity building. Then finally, what we need to do is we need 
to start recognizing the new generation as the people who are 
going to hold the mantle and move Bosnia-Herzegovina far faster 
and far further than the three ethno-nationalist leaders have 
in the past 20 years.
    Senator Shaheen. You mentioned the sanctions. I introduced 
legislation yesterday with Senator Wicker and a number of other 
sponsors that would codify the two executive orders relative to 
sanctions in the Western Balkans.
    Can you talk a little bit more about what that allows us to 
do and whether there is anything we can do in the Senate to 
help move faster on getting some sanctions in place on those 
who would disrupt what is happening in the region?
    Mr. Chollet. Well, thanks, Senator. Again, I applaud the 
reintroduction of that legislation. We would hope that the 
Congress would be able to act on it because it will give us new 
abilities to go after corruption, to go after malign influence.
    We have used the new executive order, and if this 
legislation is passed, we will use the authorities given to us 
through that legislation to go after those who benefit from 
corruption. We are constantly looking at targets, working with 
our allies and partners, and coordinating also our sanctions 
efforts.
    This is something that we feel is an important tool. It is 
not the only tool we have to fight corruption. Our new anti-
corruption envoy, Richard Nephew, was recently in Bosnia 
meeting with all sorts of government and non-government folks, 
to think about projects that his new office can work on to 
fight corruption, but sanctions are going to be a critical 
tool.
    Senator Shaheen. I would like other members of the 
subcommittee--I applaud the efforts to get the interim 
agreement with Kosovo and Serbia, but having engaged with both 
of those leaders, I have been very disappointed that they do 
not seem to recognize the opportunity that that agreement gives 
them to move their countries on a different path. What more can 
we do to say to them, this is an opportunity that may not come 
around again for decades?
    Mr. Chollet. Well, I think they just need to continue to 
hear that message in surround sound from us. I just spoke 
yesterday again with President Vucic and Prime Minister Kurti, 
making the case to both of them for their own reasons, and 
their own interests, that they should come together and move 
forward with the implementation of the normalization agreement.
    The EU has held out a pretty significant carrot here and I 
think we should acknowledge the EU's rejuvenated work on this 
in recent months. They have been incredibly engaged on this, 
and we have worked in lockstep with them. We just need to 
continue to make the case. I think hearing from members of the 
Congress on this is very important as well, so they know it is 
not just us who care, and you do that.
    There is no magic bullet here. As I said, it is going to 
require political courage. It is a risk for both of these 
leaders to move forward. We just are trying to give them that 
courage and help them manage that risk.
    Senator Shaheen. Well, you make an important point, and we 
saw that in North Macedonia and their decision with Greece. I 
appreciate that sometimes the future of the country is more 
important than the individual futures of individual leaders. 
Thank you.
    The Chairman [presiding]. Senator Kaine.
    Senator Kaine. Thank you, Mr. Chair, and thank you to the 
witnesses. I want to talk about an issue that is related to my 
work as chairman of the subcommittee on the Americas, and that 
is in my travels in the Americas, I have been surprised to hear 
again and again about very intense engagement by Albanian gangs 
in narcotrafficking, including in the Americas.
    These are Balkan gangs generally, but with a particular 
focus on Albania. Can you talk about U.S. law enforcement 
cooperation across the Balkans, particularly with Albania, on 
this drug trafficking issue?
    Mr. Escobar. Well, I agree it is a serious issue. It is not 
limited to Albania. I would say that all the countries of the 
region suffer from corruption, weak rule of law, and that 
facilitates a lot of this illicit activity. I have to say that 
we have very good cooperation with all of them. Part of it is a 
capacity issue.
    We have worked with them to strengthen their ability to 
share information across borders to deal with complex crimes, 
to use new virtual and internet tools to be able to enhance 
their investigations. In Albania, in particular, we are very 
pleased to see the formation of an independent anti-corruption 
body that has already scored several successes.
    We are also working with our European partners to 
strengthen that capacity and the intelligence sharing, and also 
to create opportunities for extraditions and witness sharing 
information. We will continue to move that, but it is a 
difficult challenge as it is not just in the Balkans, but 
throughout the developing world as well.
    Senator Kaine. Let me dig a little bit further with one 
opportunity that has already been mentioned, this open Balkan 
regional initiative announced by Albania, North Macedonia, and 
Serbia. The initiative is to lift barriers to movement and 
commerce. Given the prevalence of organized crime throughout 
the region, are there opportunities in that framework to 
promote more regional law enforcement cooperation?
    Mr. Escobar. There is. Absolutely. We support every effort 
to bring the countries closer together, as long as it is in 
line with European standards and as long as it is open to all 
of them as equal members.
    We support the open Balkan. We support the common regional 
market, and the Berlin Process. All of those will have 
mechanisms to prevent a free trade zone from becoming a free 
smuggling zone. We will continue to watch it very carefully.
    Senator Kaine. Then talk about our EU allies as these 
nations talk about EU accession, closer and closer relations in 
the EU. Are our allies in the EU also promoting law enforcement 
improvement, capacity building to try to deal with the 
corruption and drug gang problems?
    Mr. Escobar. Well, I would say that that is their main 
concern. They are very much focused on chapters 23 and 24 of 
the accession process, which is strengthening the rule of law 
in law enforcement, and cutting down on not just state 
corruption, but violent crime. They are very focused, and they 
are very engaged, and they are by far the largest contributors 
to this process.
    Senator Kaine. Counselor Chollet, you want to add anything 
to this?
    Mr. Chollet. Just to underscore what Mr. Escobar said. I 
mean, the EU accession process is not an easy one. It is not 
one that goes quickly. They are quite rigorous in how they are 
putting every country through their paces here, but just on the 
open Balkans, I think it is important to step back.
    I mean, what we are trying to achieve here, what we are 
trying to help achieve, is to create an open market, a common 
market, so they can trade and interact with one another more 
effectively, so they can then plug into a much bigger common 
market, which is Europe. There are so many practical benefits, 
for example, with open Balkans.
    I was told recently that trucks spend 80 percent of their 
time waiting in line to get across borders. Just think of the 
opportunity that can come if they can regularize their 
interactions in some way, which initiatives like the Open 
Balkans would help them do.
    Senator Kaine. Right. Thank you. I yield back, Mr. Chair.
    The Chairman. Thank you, Senator Kaine. Let me ask you a 
few other questions. I understand some members are coming, so I 
am going to filibuster. I hope your--I hope their personal 
representatives will tell them that I am filibustering for 
them.
    North Macedonia, Albania, Montenegro, and Bosnia-
Herzegovina's EU accession process are in different places. 
Tell me, what are we doing to provide them with concrete 
incentives which will promote the difficult reforms needed for 
EU entry, and to compete with the model that China and Russia 
are offering?
    How can we best, Congress, best work with you to ensure 
their progress towards EU accession continues? I heard 
something about DFC, supporting that. Private sector 
investment. I do not know what we have in terms of using the 
Commerce Department or others to engage in the region. Can you 
give us any insights into that?
    Mr. Escobar. Well, first of all, the incentives are built 
into the accession process. As they move forward, they get 
infrastructure support, they get capacity building support, and 
in some cases even budgetary support. What we have done is we 
have geared a substantial portion of our assistance to align 
with European goals so that we are providing capacity building, 
once they make the reforms.
    We are helping them draft legislation and we are helping 
train civil servants on how to incorporate their own systems 
into the European process. That support that this Senate has 
given in terms of assistance has been invaluable to the 
process. In terms of attracting private sector, we have a very 
good partner in the Department of Commerce.
    They have recently done a trade mission to the region, 
which opened the eyes of a lot of American companies about the 
vast opportunities that exist in the Western Balkans. All of 
that is crucial to underlining--and I have to say the vast 
majority of the region sees European integration as their 
highest aspiration.
    They would much rather be in the European Union and be part 
of that common market than to deal with China. We just need to 
strengthen and support that aspiration that the young 
generation of the region already has.
    The Chairman. Senator Murphy.
    Senator Murphy. Thank you very much, Mr. Chairman. Thank 
you for convening this hearing. Very conveniently timed for me 
personally, because this weekend I will be heading to the 
region, to most of the countries that we are discussing today 
and looking forward to building on these efforts that we have 
been discussing today to promote stability in the region. I 
share the chairman's concerns about Serbia's pensions to make 
commitments that often are not made good on.
    I also share your sentiment, Mr. Chollet, that so far we 
have not seen a lot of progress on either side, from Serbia or 
from Kosovo in the commitments made in this most recent 
agreement. I just wanted to dig into this question of the 
Association of Serb Municipalities a bit more, and sort of have 
two specific questions.
    One, this has never seemed to me an outrageous ask, in part 
because I agree with you, Mr. Escobar. This ultimately solves a 
lot of problems for Kosovo. It has, I understand, corollaries 
in Europe.
    There are other instances where there are parts, regions of 
countries that have a certain amount of devolved power, and it 
is not inevitable that this becomes a Republic Srpska. Maybe 
talk a little bit about how this looks familiar, and why this 
does not automatically turn into what has happened inside 
Bosnia-Herzegovina.
    Mr. Chollet. Sure. Thanks, Senator Murphy, and thanks in 
advance for taking the trip next week, which I think it comes 
at a very, very important moment in this dialog. First, just to 
step back on the ASM, as Mr. Escobar has said, this is an 
international commitment. It was enshrined in the 2013 Brussels 
agreement, so it is about 10 years now.
    In our view, it comports with the Kosovo constitution and 
constitutional court decisions. The bottom line here is we want 
all citizens of Kosovo to be able to receive equal services and 
have their voices heard. The idea is for the Serbs in the North 
of Kosovo to be less reliant on Belgrade.
    It is focused on education and health care and economic, 
local economic development, things like that. We have been 
very, very clear that we will not accept, and nor we support, 
anything that remotely resembles a Republika Srpska.
    As you noted, the European Union has cited more than a 
dozen examples within the EU of ASM-like structures, in 
Northern Italy, in Switzerland, in Finland, where they have 
these minority populations, where they have some degree of 
local control over parts of their lives.
    Mr. Escobar and I co-wrote an Op-Ed for Kosovo, in Kosovo 
papers earlier this year, laying out in our mind what the ASM 
is and what it is not, and that argument that we made has been 
embraced by the leadership of Kosovo.
    They are saying, they are using that as they are forming 
their own thinking about what an ASM might look like. What we 
would like to see is their view of what an ASM might look like 
and how that could be acceptable.
    Senator Murphy. Let me just turn to North Macedonia for a 
moment. With respect to the question of the ASM, we are not 
asking Kosovo to change their constitution, but let us be 
clear, in other circumstances in the region, there are changes 
in constitutions necessary to preserve peace.
    One of those instances is in North Macedonia, where an 
agreement has been reached to try to bring North Macedonia into 
transatlantic institutions and into the European Union. That 
would require them to change their constitution to recognize 
the rights of minority groups inside the country.
    Tell me a little bit about what the tangible benefits are 
that North Macedonia would receive by joining the EU. Why is it 
really important for them to move forward to sort of settle 
their differences with Bulgaria in order to be able to get into 
the European Union?
    Mr. Chollet. Well, North Macedonia--and again, I am glad 
you are going to be able to stop there next week. We hosted 
here the Prime Minister and Foreign Minister of North Macedonia 
just a few weeks ago. I know that they were able to meet with 
many of you. They are a terrific partner, they are a NATO ally.
    They are a regional leader. Mr. Escobar has participated in 
EU-led talks in Ohrid, which is a city in North Macedonia, on 
Kosovo and Serbia. It is self-evident for a small country like 
North Macedonia, with so much to offer, the benefits that would 
be derived from them joining the European Union.
    Now they have got to make some tough decisions in terms of 
constitutional changes, which they are being asked to make. 
They are willing to make those changes, but the politics are 
tough.
    What they need to hear from all of us is our support for 
them making these changes, which would seem minor, but are 
politically quite difficult. That will help unlock the next 
phase of their EU accession process.
    Senator Murphy. Great. Thank you, Mr. Chairman.
    The Chairman. Thank you. Senator Van Hollen.
    Senator Van Hollen. Thank you. Thank you, Mr. Chairman. 
Thank both of you for your testimony. Like others, I am sort of 
bouncing between hearings here, so I apologize if we have 
covered some of this territory.
    I do want to drill down a little bit with respect to 
Bosnia, because as may have been mentioned earlier, we had a 
meeting here, and it was a historic meeting. In fact, we had 
the three Presidents who were here in Washington a number of 
months ago. In response to questions, all three of them 
indicated that they would like Bosnia to become a part of the 
EU.
    The point was also made--the EU has taken the position that 
there would need to be reforms to the constitution, because of 
the way the constitution identifies people much more based on 
ethnicity than as individuals--than, as you know, members of 
the state with equal rights.
    That obviously has become problematic, I think, especially 
among the Serbian group and the Serbian President. How do we 
deal with this? Because, number one, first of all, it is the 
fact, is not it, that the EU has taken that position? That is 
just a factual question, yes or no?
    Mr. Escobar. Well, I would say that our aspiration is for 
Bosnia-Herzegovina to enter the European Union as a 
multiethnic, peaceful state. We do support all of the 
principles of democracy.
    The interesting thing about it, though, is that there are 
still some elements of Dayton and still some elements of the 
country that are still based on the principle of three 
constituent peoples and others.
    It is there where I think that much of the attention has 
been focused. The required changes that the European Union is 
asking them to do are changes that would bring them closer to 
that ideal of being a more democratic, more civic state.
    It is those constitutional reforms that are needed for them 
to get closer to the European Union. As they do, they are going 
to become closer--they are going to move closer to a European 
model.
    Senator Van Hollen. Right. Let me ask you this, and you 
alluded to it. My understanding is that those constitutional 
provisions were embedded through the Dayton Accords.
    Mr. Escobar. That is right, yes.
    Senator Van Hollen. I saw Secretary Blinken's letter, I 
think, a couple years ago, whereas I try to read it carefully, 
it says we support some constitutional reforms. We do not want 
to overhaul Dayton, but do we recognize the fact that some 
changes, amendments to Dayton need to be made in order to make 
the constitutional changes that would allow Bosnia to become 
part of the EU?
    Mr. Escobar. Yes.
    Senator Van Hollen. We do?
    Mr. Escobar. We do.
    Senator Van Hollen. Okay.
    Mr. Escobar. In line with Venice Commission proposals, in 
line with European commitments, and in line with a vision of 
Bosnia-Herzegovina remaining a multiethnic, democratic country 
on an EU path.
    Senator Van Hollen. Where do we stand now, as the country 
that helped more than any other to negotiate the Dayton 
Accords? Where are we today in terms of making the very narrow 
and targeted changes that would be necessary in order to have 
it flow through to--the constitutional changes that need to be 
made in order for Bosnia to become part of the EU?
    Mr. Escobar. Well, that is a constant conversation we have 
with the leadership of the country. Now, I think that with a 
new federation government, the first time in many years, and 
the quickest formation of a state level government, we do have 
the basis to start the discussions on what that would look 
like. Now, the constitutional changes, however, have to be 
embraced by the leadership of the country.
    We are encouraging them to engage in internal discussions 
on how they would implement those guidelines and those 
recommendations from the Venice Commission and the European 
Union.
    Senator Van Hollen. I appreciate it. Have any of the 
parties said that they will under no circumstances make any 
changes to the constitution?
    Mr. Escobar. Well, they have all claimed to be supportive 
of Dayton, but they have their own interpretations of Dayton, 
unfortunately. I would say that the path to constitutional 
reform is going to be a rocky one.
    Senator Van Hollen. Essential if they are going to become 
part of the EU----
    Mr. Escobar. Essential.
    Senator Van Hollen. All right. Well, this is--I am just 
hoping we are working, especially with the Serbs, who I 
understand have concerns, but the answer from the President of 
the--of Serbia area was that she also supported the entry into 
the European Union. I know you are working this through, but I 
want to continue to support your efforts and let me know what 
we can do. Thank you.
    Mr. Escobar. Thank you, Senator.
    The Chairman. Thank you. I have some final set of questions 
here. I am deeply concerned about reinforcing ethno-nationalism 
in Bosnia and Herzegovina, and I fear that the Office of the 
High Representative's recent electoral reform may have done 
just that.
    I would like to see the United States work with Bosnia to 
implement some of the European Court of Human Rights rulings 
for the last two decades, including those requiring inclusion 
of non-constituent groups. What are we doing to defuse ethno-
nationalism and support a pluralistic democracy in Bosnia? 
Either one of you may answer.
    Mr. Escobar. Okay. Well, as I mentioned, one of the things 
is that we want the new governments to start an internal 
discussion about how they would implement guidelines provided 
by the Venice Commission and the European Union.
    Also, to start the discussion about how they would modify 
their electoral system to be able to make it more 
representative, as well. A lot of the obstruction is the result 
of corruption.
    I have to say that overwhelmingly when people leave the 
country, they do not leave because they do not want to live in 
a multi-ethnic state. They leave because they cannot find jobs 
without corrupt connections.
    Part of the process will involve holding both corrupt and 
obstructionist leaders to account for their failure to make the 
reforms that the European Union says are absolutely critical.
    The Chairman. Well, I think this is why Senator Cardin's 
legislation on the global corruption issues is so critically 
important, if we are to have a tool that actually engages in 
this. Let me ask you finally, Serbia is also an EU candidate, 
but from my perspective, it has not demonstrated a serious 
desire to join the EU recently.
    Nearly half of its population is against EU entry, favoring 
closer relations with China and Russia, and it continues to 
refuse to join sanctions against Russia for the invasion of 
Ukraine. What, in your mind, can be done to change Serbia's 
drift towards Russia and China? Particularly what sticks and 
carrots are we contemplating?
    Mr. Chollet. Sure. Thank you, Senator. We have been engaged 
for the last several years in an effort to reduce Russian and 
PRC influence in Serbia and to get Serbia closer to the West, 
closer to Europe, closer to the United States.
    There is a lot of challenges they face, whether it is the 
reliance on Russian energy, the challenges of the rule of law, 
and, of course, their differences with Kosovo. As long as those 
challenges remain, it is just an opportunity for Russia and the 
PRC. I mean, our argument is that normalization is going to be 
good for business.
    Now, businesses are not going to be able to thrive fully as 
long as we have such a huge corruption problem there, but 
nevertheless, I think it is in our strategic interest, as we 
said, to move Serbia closer to us.
    It is about roughly half the GDP of the entire region. 
Although the accession talks have been underway for now nearly 
a decade, they have not made a tremendous amount of progress.
    Serbia, despite the fact that it has not joined with 
sanctions, and we have made very clear to them that if they do 
not align themselves with the EU sanctions, it is hard to see 
how the integration process is going to move much further, they 
have been aligned with us in terms of criticizing and 
condemning Russia and its invasion of Ukraine through UN votes.
    They have condemned the annexation of Crimea. They have 
helped on refugees. They have helped Ukraine with critical 
infrastructure. They have helped on humanitarian assistance, 
but they still do need to align on sanctions.
    The Chairman. Well, when we talk about regional economic 
issues, I am concerned that Serbia continues to push a regional 
economic format known as the Open Balkan Initiative. I am 
totally for regional economic integration, but I am concerned 
that a format, with Serbia as a dominant economy, is going to, 
one, marginalize Kosovo.
    Unless Serbia aligns itself with EU-led sanctions, it is 
going to exacerbate Russia's sanctions evasion via the Western 
Balkans. Are you seeing significant Russian sanction invasions 
happening via the Western Balkans? Would further enlargement of 
an Open Balkan exacerbate this issue?
    Mr. Escobar. Well, I will start by saying that the European 
Union, in its own report, has said that they see no significant 
sanctions evasion in Serbia, or the region as a whole. That is 
important.
    The Chairman. What is our own assessment, though?
    Mr. Escobar. Our assessment is very close to that. It is 
not the place that the Russians are doing trade substitution. 
It is other parts of the world. I would say that the Open 
Balkan is just one of many economic integration opportunities.
    What we are seeing right now is we are seeing a domestic 
homegrown effort not just by Serbia, but by Albania and North 
Macedonia, to try to move the integration faster than the 
European Union has been able to achieve.
    Now, our position on the open Balkan is it should be 
complementary, not competitive with all the other initiatives 
that are bringing it closer to Europe. Additionally, our 
conditions for supporting the open Balkan as part of the other 
initiatives is that it would be open to all of them, equally, 
as full members, and it would require Serbia to accept Kosovo 
as a full member. Unfortunately, a lot of the other 
initiatives, including European initiatives, caveat Kosovo's 
participation.
    For us, this is an opportunity to create an even further 
integration of Kosovo into the region, should this initiative 
move forward. Otherwise, we will not support it.
    The Chairman. I am glad to hear that. Lastly, and then I do 
not know if Senator Risch has any additional questions.
    This is a little off, but I--since I have the counselor 
here. I understand that free and fair elections, including 
independent judiciaries, are critical elements of a democracy. 
I am concerned about Albanian police arresting a Greek 
national, Dionysis-Fredi Beleri, 2 days before the election--2 
days before the election.
    While we see how the evidence emerges, the Greek Government 
had made clear this is going to have a negative implication for 
Albania's EU aspirations. What are we doing to ensure that 
Albanian authorities are upholding the rule of law? What is the 
path forward here?
    Mr. Chollet. Thanks, Senator. I can start, and we heard 
yesterday from the Greek Ambassador, both of us did, and Mr. 
Escobar had a chance to connect with her. It is something I was 
just made aware of yesterday, and we have communicated back to 
our Embassy in Tehran as well to ensure that we are following-
up and fully understanding what happened here.
    The Chairman. Yes. Well, I have been advocating with the 
Hellenic Republic for Kosovo and others, but this exacerbates. 
In my mind, I always question when something happens 2 days 
before an election. Senator Risch, do you have any--?
    Senator Risch. No, that is okay. Thank you.
    The Chairman. All right. Well, with the thanks of the 
committee for your testimony, this record of the hearing will 
remain open until the close of business on Friday, May 19. We 
appreciate your insights. This hearing is adjourned.
    [Whereupon, at 12:03 p.m., the hearing was adjourned.]

                                  [all]