EU High Representative Josep Borrell warned on June 26 of possible political and financial measures if an agreement on holding new local elections in the north of Kosovo is not reached, according to a statement of EU External Action Service.

The crisis in northern Kosovo emerged at the end of last month when Serbs living in the region staged protests against the appointment of Albanian mayors. The mayors were elected following snap local elections that were boycotted by the predominantly Serb population. The demonstrations resulted in clashes with KFOR peacekeeping troops, leaving nearly 40 soldiers injured.

Borell made the statement after briefing EU foreign ministers about the tensions in the north and the results of his separate meetings with Serbian President Aleksanadar Vucic and Kosovo’s PM Albin Kurti held in Brussels on June 22. 

Earlier in June, the EU reduced high-level visits, contacts and financial cooperation with Kosovo, mirroring similar measures taken by the US late last month.

"From tomorrow, the Political and Security Committee will begin to consider what actions could be taken in the event that, in the end, we do not reach an agreement to call new elections," Borrel emphasised, noting that he was referring to measures, not sanctions.

Answering a journalist question at a news conference in Luxembourg, Borrell highlighted that it is crucial to organise elections in all four municipalities in the north, ensuring the unconditional participation of Kosovo Serbs, and that both parties must demonstrate their readiness to fulfill their dialogue obligations.

He added that during the Brussels meeting "we tabled a balanced roadmap on a way out of the crisis but, unfortunately, the meetings did not produce an immediate breakthrough."

He also welcomed the release of three Kosovar policemen, who had been held in Serbia since June 14.

Serbian authorities announced that they released the three policemen on June 26.

Release of the three Kosovar officials was one of the EU requirements for the stabilisation of the situation on the ground.

Head of the Serbian office for Kosovo and Metohija, Petar Petkovic, clarified that the decision of the High Court in Kraljevo to release the three Kosovo policemen was a judicial, rather than a political decision.

Petkovic said that this means that the court process against the officers, who are accused of the criminal offense of illegal carrying and possession of weapons and explosive substances, will continue.

EU Enlargement Commissioner Oliver Varhelyi also welcomed the release of Kosovan police officers by Serbian authorities.

“Deescalation must continue, new municipal elections need to be organised without delay and dialogue agreements need to be implemented including establishing Association of Serb Majority Municipalities,” Varhelyi tweeted.

Kosovan Prime Minister Albin Kurti has been under pressure from the EU and other Western allies to de-escalate the situation in northern Kosovo.

EU members on June 14 unanimously agreed on “reversible and temporary measures” against Kosovo, to be phased out depending on developments on the ground and credible decisive steps by Kurti, according to EU spokesman Peter Stano.