The European Union on Tuesday slammed Kosovo after police closed six branches of a Serbian-licensed bank on Monday, following the country’s ban on the Serbian dinar currency.
The bank closures resulted in the loss of all Serbian financial institutions in northern Kosovo.
"In the continued absence of sustainable alternatives, this will have negative effects on the daily lives and living conditions of Kosovo Serbs and other communities eligible for financial transfers from Serbia," EU spokesperson Peter Stano said in a statement.
Kosovo in February forced ethnic Serbian-dominated areas to adopt the euro, which is used in the rest of the country, heightening Serbia-Kosovo tensions.
Many Serbs in the country rely on financial assistance from the Serbian government, which delivers its support in dinars. Serbia also funds health, education and social security systems for Serbs in Kosovo.
Kosovo’s government said payments to ethnic Serbs are not prohibited and can be made in euros.
Kosovo Interior Minister Xhelal Svecla said the closures uphold the "rule of law and order," which their government has repeatedly pledged.
Stano said “Monday’s operation proves again that Kosovo authorities prioritize unilateral and uncoordinated actions rather than cooperation with its friends and allies.”
Kosovo was once a part of Serbia. It declared its independence in 2008, which Belgrade does not recognize.
The two sides have previously held talks but have not reached an agreement.
“The EU urges Kosovo and Serbia to return to the negotiations table,” Stano said.
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