Serbia will not punish Kosovo with embargo

Serbia promised on Tuesday not to undermine Kosovo's fragile economy with an embargo, despite its strong opposition to the ethnic Albanian region's declaration of independence last month.

"It is in our vital interest that all of Kosovo's communities prosper, and prosper together in peace, security and reconciliation as neighbours in a progressive society of hope and forgiveness," Vuk Jeremic, Serbia's foreign minister, told the U.N. Security Council.

"This is why Serbia does not intend to impose an embargo, and why we have a clear policy of not resorting to the force of arms," he said.

Before Kosovo declared independence, Belgrade had warned it would use all economic, political and diplomatic means at its disposal to prevent the secession.

The 15-nation Security Council has been deadlocked for months on Kosovo with Serbia's ally Russia disagreeing with fellow permanent council members Britain, France and the United States, which support Kosovan independence.

Not all of the 27 European Union members have recognized Kosovo, but Brussels is deploying a supervisory mission that will monitor the territory's progress as an independent state.

The loss of Kosovo by Belgrade undermined Serbia's coalition government. It dissolved on March 10, opening the door for parliamentary elections in May.

Russia, the current president of the Security Council, circulated a draft statement that would have condemned Kosovo's independence. It received only polite acknowledgment from Britain and the United States who said there was no real change on the council, leaving the situation in deadlock.

"I think we are all conscious that there are political events going on in Serbia at the moment and I don't think there is going to be any rapid or marked change in the position in the Security Council that you have seen for some months now," British U.N. Ambassador John Sawers said after the meeting.

Prime Minister Vojislav Kostunica said the government could not stay in office faced with the conflicting goals of defending Kosovo and joining the European Union.

Jeremic said these the elections would be a watershed for Serbia. "Real concrete differences exist on economic and social issues and on the crucial issue of Serbia's future in Europe."

But he said the election would not primarily be about Kosovo because there was broad agreement the former province belonged to Serbia.

Polls suggest the election may not produce a clear winner and could lead to long negotiations to form a new coalition. Such a delay could stall urgent legislation and the arrest of war crimes suspects - a condition for EU membership.

Kosovo's population is roughly 2 million, 90 percent of whom are ethnic Albanian. Belgrade is instructing Kosovo's 120,000 remaining Serbs to sever ties with the government and ignore a new EU mission.